The directors of
Aur is offering one share for every 1.1 Cambior share (T.N.M., Jan. 24-30, 2000). Launched in mid-January, the bid is set to expire at the close of business on Feb. 16.
If Aur succeeds in taking over Cambior, the merged entity would be a diversified gold and base metal producer with exploration assets, development projects and operating mines situated throughout the Americas.
Cambior says Aur’s offer is deficient in several respects. In particular, the major says that if Aur is successful in its takeover, Cambior’s financial creditors can demand immediate repayment of various obligations. As well, an Aur takeover would pre-empt Cambior’s ongoing efforts to unbundle its gold assets from its base metal assets.
Cambior says it only began attracting bidders for its various assets in late December 1999 and that it is aiming to complete asset sales by April or May of 2000.
Prompted by the rally in gold prices in early February, Aur has subsequently requested that Cambior provide it with access to all information related to the major’s bank debt, hedge book and call-option contracts.
Aur has also requested full access to Cambior’s financial creditors and hedge book counterparties, and has stated that, if its demands are not satisfied, the takeover offer could be withdrawn.
In response, Cambior says it will give Aur the data it has requested providing Aur extends the expiry date of its bid. Cambior says Aur has rejected this proposal.
Meanwhile, Cambior has reported improved operating performances from all its gold and base metal operations at year-end.
Cambior’s share of gold production in 1999 totalled 629,967 oz. at an average direct mining cost of US$215 per oz., compared with 637,825 oz. produced at US$233 per oz. in 1998.
In the fourth quarter of 1999, Cambior’s share of gold production was 166,948 oz. at an average direct mining cost of US$205 per oz., compared with 169,591 oz. gold mined at a cost of US$223 per oz. in the fourth quarter of 1998.
In Quebec, the Doyon division boasted fourth-quarter production of 62,818 oz. gold compared with 57,499 oz. in the third quarter of 1999 and 61,480 oz. in the fourth quarter of 1998. Doyon’s direct mining costs during the fourth quarter of 1999 fell to US$198 per oz., compared with US$223 a year earlier. The improvement is attributed to reduced costs and a slightly higher head grade of 6 grams gold per tonne.
The (effectively) wholly owned Omai mine in Guyana produced 79,954 oz. gold at a direct mining cost of US$223 per oz. in the fourth quarter, compared with 89,125 oz. at US$228 in the corresponding period of 1998. The production shortfall is mostly due to declining head grades, which slipped to 1.35 grams from 1.51 grams a year earlier.
For all of 1999, Doyon and Omai produced 242,757 oz. and 306,063 oz., respectively, compared with 239,620 oz. and 327,546 oz. in 1998.
Cambior’s half-share of 1999 production from the Sleeping Giant gold mine in Quebec was 37,741 oz., compared with 35,681 oz. in 1998. The direct mining cost was US$198 per oz., compared to US$187 per oz. in 1998.
For 1999, zinc and copper metals in concentrates at Cambior’s wholly owned Bouchard-Hebert mine in Quebec totalled 37,693 tonnes and 7,243 tonnes, respectively, compared with 36,923 tonnes and 5,841 tonnes in 1998. Gold-equivalent contained in copper concentrate totalled 43,406 oz. in 1999, compared with 34,978 oz. in 1998. Direct mining costs were unchanged at US$22 per tonne for the full year.
At the 100%-owned Langlois mine in Quebec, zinc and copper production in concentrates during 1999 was 28,280 tonnes and 1,023 tonnes, respectively, compared with 25,281 tonnes and 1,009 tonnes in 1998. The zinc head grade for 1999 was 7.51%, compared to 6.54% in 1998. Operating costs shot up US$6 to US$37 per tonne for the full year.
In 1999, Cambior’s half-share of production from the Niobec niobium mine in Quebec was relatively unchanged at 1,100 tonnes of niobium.
Cambior has also reported results from a 4-hole, 2,926-metre diamond drilling program at the Lapa gold property, in northwestern Quebec’s Cadillac Twp.
The Lapa property is wholly owned by
While four holes drilled by Cambior into the previously known “zone A” failed to return economic results, three holes intersected a new area of gold mineralization; known as the “Contact zone,” it is 50 metres north of zone A.
One intersection through the Contact zone at a vertical depth of 595 metres returned 23 metres (8 metres true width) grading 10.1 grams gold, cut at a grade of 34 grams gold.
The program was partly funded by a Quebec government program that encourages deep exploration drilling in the Abitibi region.
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