Kam-Kotia Mines adding sodium sulphate division

The sodium sulphate division of Saskatchewan Minerals, which is owned and operated by the Saskatchewan government, is being sold to Kam-Kotia Mines of Toronto for $12.5 million.

The purchase transforms Kam- Kotia into an operating company. Previously it had been considered purely as a holding company with its main asset a controlling interest in Dickenson Mines.

Kam-Kotia says it will use a combination of working capital, proceeds from a recent private placement and a bank line of credit to finance the acquisition, which is expected to be completed April 21.

The sodium sulphate business employs 82 people in operations at Chaplin and Ingebriat, Sask., Kam- Kotia reports, and is Canada’s largest primary producer of sodium sulphate.

Sodium sulphate is used in the manufacture of detergents and in the pulp and paper industry.

Kam-Kotia, whose major shareholder is Dickenson Mines, says the sodium sulphate business will operate as a division of Kam-Kotia.

Saskatchewan Minerals has also sold its peat moss operations at Carrot River, Sask.