Cambiex to tie knot with Dundee

Gold explorer Cambiex Exploration (CBX-T) and closed-end investment company Dundee Precious Metals (DPM.A-T) have agreed to merge.

Montreal-based Cambiex, which is changing its name to Hope Bay Gold Corporation, has a 50% stake in the Hope Bay project in Nunavut, co-owned with equal partner Miramar Mining (MAE-T).

Dundee, part of Ned Goodman’s stable of companies, holds about $90-million worth of precious metals assets, including 10 million Cambiex shares, or an 11% stake.

Although the merger terms are not yet final, they will be based on the relative net asset values (NAVs) of both companies. On June 22, Cambiex’s estimated NAV was between 42 and 54 per share, whereas Dundee’s was $13.05 per share. Cambior and Dundee have 95 million and 7.2 million shares outstanding, respectively.

The companies intend to complete their letter-of-intent to merge by July 24, 2000. Pending completion of a definitive merger agreement and to allow Cambiex to continue its work at Hope Bay, Dundee has advanced Cambiex $6 million in the form of a convertible loan that will be extinguished upon completion of the proposed merger.