The private gold investment fund has also monetized its remaining 23 million Cambior shares via the sale of exchangeable debentures. The transactions are scheduled to close before March.
In mid-December 2003, Jipangu halved to 14% its stake in Cambior by assigning almost 11 million shares to Sprott Asset Management after that company exercised its rights under a $10-million convertible debenture, issued in late 2001. Less than a month earlier, Jipangu exercised 4.9 million warrants for Cambior shares at US83.3 apiece to boost its stake in the company to 28%. The warrants were part of an earlier private placement.
Jipangu first took a position in Cambior in May 2000 after a hedge book gone wrong almost sank the miner. Jipangu injected US$5 million into the cash-strapped company via a private placement of 5 million units. The deal gave Jipangu a 12.4% stake in Cambior.
At presstime, following the news, shares in Cambior were off 8, or more than 2%, to $3.65 in afternoon trading in Toronto.
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