The subordinate voting shares of Curragh Resources (TSE) have been listed for trading on the Montreal and Toronto stock exchanges, following completion of the company’s initial public offering earlier this month. Curragh, which operates the Faro lead-zinc mine in the Yukon, is a major producer of lead and zinc concentrates. Despite the recent depressed stock market conditions, Curragh successfully went public by selling some five million of its subordinate voting shares at a price of $11.88 per share.
However, the Toronto-based company had hoped to sell up to 6.5 million shares at $11-14 each, but the offering had to be scaled back partly because of a lack of investor interest.
The stock sale is part of the Curragh’s plan to reduce about $190 million in debt. The company supplies about 3% of the western world’s zinc concentrate and 5% of its lead concentrate with most of its production sold under contract to smelters in Asia and Europe.
Last year, Curragh had sales of zinc and lead concentrates totalling $348.5 million, up 4.7% from $332.8 million in 1988. After deducting smelting costs, net sales for 1989 were $227.2 million, compared with $206.2 a year earlier.
As a result of the recent share sale, the public owns a 15.7% equity interest in Curragh with privately owned Frame Mining holding a majority 49.2% stake. Giant Resources of Australia is left with a 30.7% interest, which is currently up for sale. Asturiana de Zinc, a Spanish company, also owns a 4.4% interest in Curragh.
Meanwhile, exploration and development work are continuing on the company’s lead-zinc projects: the Mount Hundere project in the Yukon and the Cirque project in British Columbia.
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