Toronto-based Kerr Addison Mines (TSE) intends to sell its 30.5% stake in Calgary-based oil and gas producer Anderson Exploration. Kerr’s 6.2 million shares of Anderson are worth nearly $100 million at current market prices and represent the company’s last major investment in the oil and gas industry.
Anderson’s other major shareholders are J.C. Anderson, its president and CEO, with 18.2%, and B.C. Sugar of Vancouver with an 18.1% interest.
Two years ago, Kerr disposed of substantially all of its interests in the Canadian Hunter joint venture. Kerr’s recent decision to divest its Anderson shares is the final step in the company’s strategy of selling oil and gas assets to focus mainly on mining. The sale will provide additional financial resources enabling Kerr to further build up its mineral reserve base.
Resource giant Noranda (TSE) controls Kerr Addison, which in turn owns 50.4% of Minnova (TSE). Kerr has a 44% interest in RFC Resource Finance (TSE), which owns the Pend Oreille zinc deposit in Washington.
For the 9-month period ended Sept. 30, 1990, Kerr reported cash and shortterm securities totaling $74 million.
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