Tax ruling allows Noranda to spin off forestry, oil-gas units

Article Abstract:

Noranda Inc., a Toronto, Ontario-based natural resources conglomerate, has received the approval of Revenue Canada to proceed with its plans to spin off Noranda Forest Inc., its forest subsidiary, and Canadian Hunter Exploration Ltd., its oil and gas subsidiary. The move is part of Noranda's strategy to boost its profitability by concentrating on its international mining and metallurgical businesses. Under the plan, Noranda Forest's shares, which are valued at C$731 million, must be distributed to its shareholders as dividend. Shares of Canadian Hunter, on the other hand, is estimated to have a market value of approximately C$1 billion. The spinoff, which is still subject to the approval of common shareholders of both companies, is expected to take effect on Dec. 31, 1998.

Comment:

Gets approval of Revenue Canada to proceed w/ plans to spin off Noranda Forest Inc & Canadian Hunter Exploration Ltd

Crude Petroleum and Natural Gas Extraction, Crude Petroleum & Natural Gas, Paper & Allied Products, Paper Manufacturing, Ontario, Mining & Extractive Industries, Mining, Petroleum industry, Natural gas, Petroleum, Gas industry, Paper industry, Canadian Hunter Exploration Ltd., Noranda Forest Inc.

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Noranda, Teck buy stakes in copper mine

Article Abstract:

Inmet Mining Corp. has sold its 50% stake in the US$2.2 billion Antamina project in Peru to Noranda Inc. and Teck Corp. because of pressure from institutional shareholders, who think that the company would not be able to afford the capital cost of the copper, zinc and silver project. Meanwhile, aside from buying Inmet's stake, Noranda and Teck will also acquire a 16.7% interest in the project from Rio Algom Ltd. for about $30.2 million. As a result of the deal, each of Noranda, Teck and Algom will own one-third interest in the Antamina project.

Comment:

Has acquired Inmet's 50% stake in the US$2.2 billion Antamina project in Peru together with Noranda

Acquisitions & mergers, Peru, Copper, Primary Smelting and Refining of Copper, Copper products, Inmet Mining Corp.

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Teck issues debenture to raise cash for mine

Article Abstract:

Teck Corp of Vancouver, Canada, intends to issue a C$125-mil debenture, potentially convertible into common shares of its subsidiary Vancouver-based Cominco Ltd at a rate of C$23.50 per share. Through the debenture, Tech hopes to boost its cash reserves to C$240 mil to help finance its 1/4 share of the $2.3-bil Antamina zinc and copper mine in Peru. Tech Pres and CEO Norman Keevil stressed the company has already spent around C$40 mil of the C$60 mil that the company anticipates to spend on Antamina in 1999.

Canada, Copper Mines, Copper Ore and Nickel Ore Mining, Copper mining, Cominco Ltd.

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