Manitoba Mineral sells Trout L. stake

Residents of Flin Flon, Man., received good news this week when Manitoba Mineral Resources (MMR), a crown corporation, sold its 27% interest in the Trout Lake base metal mine to Hudson Bay Mining & Smelting for $25 million.

Manitoba Mines Minister Donald Orchard says the sale will result in an $80-100-million capital investment by HudBay for shaft deepening and development. The program is expected to extend the mine life by 12 years and bolster the local economy.

With this transaction, HudBay becomes the sole owner of the deposit. Earlier this year, it bought Granges’ (TSE) 29% interest in the deposit for $33 million plus working capital adjustments.

At the end of 1993, proven and probable reserves stood at 5.1 million tons averaging 2.1% copper, 6.8% zinc, 0.05 oz. gold and 0.6 oz. silver per ton. As part of the deal, HudBay also gains control over several local base metal properties which were held by MMR.