Curragh raising $170 million to offset debt, Mt. Hundere

Toronto-based Curragh Resources (TSE) is close to finalizing a $125-million long-term financing package designed to offset debts acquired as Curragh completed the acquisition last year of a 20% stake in the Spanish smelter Asturiana de Zinc. Curragh Vice-Chairman George Whyte said details of a proposed private placement package assembled by investment banker Morgan Stanley in New York are currently in the hands of potential investors.

“We expect to get some indication of their interest within the next couple of weeks,” Whyte told The Northern Miner recently.

Curragh, which recently became a publicly listed company, is carrying a debt load of about $190 million, including $132.5 million in long-term debt.

To secure additional smelting capacity for Curragh’s lead-zinc mine at Faro, Y.T., the Toronto company spent $119.6 million to acquire the 20% stake in Asturiana.

In return, the Spanish company was supposed to purchase 5% of Curragh shares by Oct. 29. Despite rumors to the contrary, Asturiana will take up those shares as scheduled, Whyte said.

Meanwhile, Curragh and joint venture partner Hillsborough Resources (TSE) are awaiting closure of a $63-million non-recourse financing designed to fund construction of the Mt. Hundere lead- zinc project in the southeast Yukon. Curragh owns 80% of the Mt. Hundere property, which is expected to produce 100,000 tons of lead-zinc concentrates annually by 1992. Hillsborough owns the other 20%.

Also, Curragh Chairman Clifford Frame is recovering from a badly broken leg which he sustained in a riding mishap at his farm in Uxbridge, Ont.