Noranda re-works Montanore deal

Partners Noranda Minerals (a subsidiary of Toronto-listed Noranda) and Montana Reserves (a private company) have restructured the ownership of their Montanore silver-copper property near Libby, Mont.

Montana Reserves’ participating interest has been converted to a net proceeds royalty, but the company maintains the right to re-acquire a 45% interest under certain conditions.

Mining of the deposit, which contains 130 million tons grading 0.8% copper and 2.5 oz. silver per ton, will probably begin this summer at 20,000 tons per day. Concentrates will be processed at Noranda’s smelter in Quebec. Development costs are estimated to be $250 million.

In other news, Noranda has arranged for a US$200-million issue of 8% debentures maturing June 1, 2003. The debentures are the second in a series issued under the company’s shelf prospectus filed in 1992.