Lac’s Irish deal on hold because of legal dispute

A legal dispute has suspended Lac Minerals’ (TSE) plans to purchase a holding company that owns Chevron’s mineral interests in Ireland.

The property portfolio includes a 52.5% interest in the Lisheen lead-zinc deposit. Ivernia West, an Irish company with a 47.5% interest in Lisheen, has right of first refusal on Chevron’s stake in the deposit.

Although Ivernia is questioning the Lac-Chevron deal in light of this preemptive right, some observers say the US$70-million purchase agreement will stick because Lac is buying a holding company rather than a direct interest in Lisheen.

The Irish junior has some powerful shareholders, including Outokumpu of Finland (24.3%) and Minorco of Luxembourg (17.6%). The case has gone to arbitration.

Lisheen hosts reserves of 25 million tonnes grading 12% zinc and 2% lead. Lac had planned to complete a feasibility study by early 1994.