Cambior offering raises $86 million

The initial public offering of Cambior (TSE) raised the gold producer almost $86 million upon the recent exercise of the warrants, increasing the company’s cash account to about $136 million.

Val d’Or, Que.-based Cambior, which turned out about 190,000 oz. gold in 1989, has had $50 million sitting in its bank account since the end of the third quarter, 1989. The 1986 offering, whose warrants carried an exercise pr ice of $12.50 per share, expired Jan. 15. About 6.9 million shares were then issued by the company, bringing the number of outstanding shares of Cambior to about 30.6 million.

Completion of the offering also saw the interest of SOQUEM, Cambior’s largest shareholder, fall from 30% to 20%, as per the terms of the financing deal. SOQUEM is a Quebec Crown corporation involved in mining exploration and development.

Cambior’s long-term debt currently stands at $20 million, half of which is in the form of a gold loan.

Cambior has made no announcement as to how it intends to spend the money. The manager of public relations, Robert LaValliere, said the company has a stated policy of growth through exploration and acquisition. President Louis Gignac, in a press release, referred to the proceeds of the offering allowing the company “to aggressively pursue its growth objectives.”

Last year, Cambior opened its newest gold mine, the 35,000-oz.- per-year Beliveau mine, east of Val d’Or. A project in which Cambior has a 25% interest, the Silidor gold mine near Rouyn-Noranda, Que., is scheduled to enter production this year.