Metall changes name to Inmet

Shareholders of Metall Mining approved a name change and amended their company’s rights plan at the annual meeting.

The new corporate name is Inmet Mining (TSE), which Chairman James Tory says reflects both the company’s past (“met”) and its independent status and international perspective (“in”).

Inmet lost its parent last year when Metallgesellschaft AG of Germany sold its 50.1% interest on the open market. Currently, Inmet has no controlling shareholder.

The rights plan was amended primarily because of Inmet’s contractual arrangements relating to two of its principal assets, OK Tedi and Temagami Mining Co. (Inmet shares ownership of the OK Tedi mine with BHP and the government of Papua New Guinea; it also shares ownership of Temagami Mining, which controls Teck, with the Keevil family.) In each case, Inmet’s partner may acquire Inmet’s interest in the asset in the event of a corporate takeover.

A significant change to the rights plan, which acts as a defense against a hostile takeover, is the permitting of all partial bids (previously, a partial bid had to be made for at least 51% of Inmet’s shares).

Inmet has about 81.2 million shares outstanding.

In the first quarter of 1995, the company recorded net earnings of $15.1 million, compared with $5.7 million for the same 3-month period last year, in large part because of higher copper and zinc prices.

President Klaus Zeitler said the future of the high-cost Copper Range project in Michigan remains uncertain. An alternative, being considered, would be to turn the project into a small-scale solution mining operation. The company awaits delivery of a feasibility study.

Inmet has given the go-ahead for development of the Pick deposit at the Winston Lake zinc-copper mine in northwestern Ontario, which will extend the life of the Winston Lake operation to eight years. The estimated capital cost is $26 million. The company has drifted to the deposit; construction will include an internal shaft and a ventilation shaft.

While known as a base metal producer, Inmet is working to increase its gold output. In particular, development of the Troilus project in northwestern Quebec, which is scheduled to be in production in late 1996 or early 1997, will boost the company’s annual output to more than 300,000 oz.