Cambior‘s (CBJ-T) major shareholder, Japanese-based Jipangu, has cut its ties with the Quebec gold miner by selling 10.4 million shares.
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 on Feb. 27.
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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