Pine Point seeks interest in mine

With operations in the Northwest Territories expected to cease in 1988, Pine Point Mines is negotiating a 40% interest in Cominco’s Polaris mine in the High Arctic. Noting that the company is now in the “latter stage of its operating life,” David L. Johnston, president, said the acquisition would allow Pine Point to continue as a company rather than being wound up.

Conceding there was no agreement yet, he said the acquisition “looks good from the judgment of the board.” He confirmed the cost of the interest would be $90 million, adding the acquisition, if concluded, would be at least partly debt- financed. Recalling Pine Point’s good dividend policy, he added that the company would retire all existing debt by the end of the year.

Cominco currently owns approximately 50% of Pine Point which is down from 69% a few years ago when the former began its debt reduction program. Cominco has a management contract for the Pine Point lead-zinc-silver mine and would continue as operator at Polaris, says Mr Johnston.

Production at Polaris began in March, 1982, and last year the mine produced more than 200,000 tons of zinc concentrate and 35,000 tons of lead concentrate. Reserves at year-end stood at 20 million tons grading 14.5% zinc and 3.9% lead.