Noranda funding

Proceeds from the sale of shares in Noranda Forest will be used to fund opportunities mainly in its mining and metals group, Noranda (TSE) reports.

A group of Canadian underwriters will buy 12 million common shares of Noranda Forest from the parent on a bought-deal basis and offer the shares to the public, raising $144 million (based on $12 per share).

Noranda’s common share ownership in Noranda Forest will fall to 74% from 83%, or to 66% from 74% on a fully diluted basis.