Cambior acquiring 100% of Chimo mine

Gold producer Cambior (TSE) has reached an agreement to purchase the 50% interest in the Chimo mine it does not own from Societe Miniere Louvem (TSE). Cambior will pay about $6.4 million for Louvem’s half-interest in the gold mine near Val d’Or, Que. The price includes Cambior’s agreement to waive repayment of the gold loan extended to Louvem in May, 1989, and an additional cash payment of $1 million. The gold loan is worth about $5.4 million (12,286 oz.)

The transaction, subject to regulatory approval, is scheduled for completion before May 30. Cambior’s board of directors must also give its approval. Cambior purchased its existing 50% interest in the mine from Louvem last year.