The U.S. subsidiary of Luxembourg-based Minorco has given 56% owned affiliate Inspiration Resources (TSE) more time to consider its recent $100-million offer to purchase all the outstanding shares of Hudson Bay Mining & Smelting (TSE).
Originally scheduled to expire, June 1, the offer has been extended for another two weeks to allow Inspiration Resources to evaluate the bid for Hudson Bay Mining, its wholly owned subsidiary. Minorco has also given Inspiration Resources until July 19 to solicit competing offers as long as the rival bidder expresses interest by July 1.
However, an Inspiration Resources spokesman said the company isn’t releasing any information regarding rival offers and she wouldn’t say if any offers had been received. “We just can’t release any information like that,” she said.
Under the offer, if Minorco and Inspiration enter into an agreement, the latter company may solicit competing offers for Hudson Bay that exceed Minorco’s by at least $5 million.
If the offer goes ahead, Minorco has agreed to provide financial support for a $187-million modernization program at Hudson Bay’s Manitoba metallurgical complex where sulphur dioxide emissions must be reduced 25% by 1994. Hudson Bay is Canada’s fourth largest producer of copper and zinc.
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