Aur spills the beans: it bought shares in Inmet

Responding to speculation by market-watchers, Aur Resources (AUR-T) has confirmed that it has bought a large holding in Inmet Mining (IMN-T).

Careful readers of Aur’s quarterly financial statements had noticed that $25.5 million had slid out of cash and into marketable securities in the second quarter of 1998. That cash was used to buy about 5 million shares of Inmet on the open market.

Aur announced its purchase, which amounts to about 5% of Inmet’s shares, was an investment. Inmet’s own issuer bid, announced early in August to counter a takeover bid by Zemex (ZMX-T), is for $5.65 a share.

At June 30, Aur still had $101 million in cash, and total current assets, including the Inmet holding, of $149 million.

Inmet is attempting to fend off a takeover by Zemex. As part of that effort, Inmet has offered to buy back up to 65 million of its shares at a 28% premium to the most recent closing price.