Acquisition of a controlling interest in the Pamour (TSE) group of companies, originally scheduled to close on Sept. 27, has been postponed once again. Royal Oak Resources (TSE), which stands to gain a 62.8% stake in Pamour and a 16.7% stake in Giant Yellowknife Mines (TSE) through an agreement with Giant Resources of Australia, says that it will close the $33-million deal on Oct. 24. This is the second time the closing has been delayed.
It appears that an offer from New York bullion trader Sharps Pixley to provide $14 million in debt financing for the acquisition has fallen through. Giant Resources, Westpac Banking Corp. and the Bank of New Zealand have agreed to supply a $19.7-million loan instead.
This debt is repayable over two years at an interest rate of prime plus 1.75%, Royal Oak said in a press release. Under the terms of the financing, the vendor will have the option of converting up to 23% of the debt into shares of Royal Oak. Royal Oak may prepay the debt at any time without penalty, but will be subject to a penalty if the debt remains outstanding after Oct. 31, 1991. Royal Oak said it intends to secure long-term gold- based financing.
Completion of a $16-million international equity offering, scheduled for Oct. 5, has also been postponed until Oct. 24.
Royal Oak management was unavailable for comment when The Northern Miner contacted its offices in Vancouver.
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