Cominco Resources International Ltd., which recently organized to act as Cominco Ltd.’s exploration and mine development arm outside Canada, Alaska and Australia, has completed the sale of 41.4% of its equity to the public in Canada and Europe.
As a result, Cominco Ltd. now owns 58.6% of the company.
The public offering comprised 13.4 million units at a price of $3 each. Each unit consists of one common share and one warrant.
The company says net proceeds of $37.1 million will strengthen its financial position and enable it to intensify exploration and development of more than 50 mineral properties acquired from Cominco Ltd. and its subsidiaries.
The acquired properties strongly emphasize gold. Cominco Resources’ U.S. subsidiary, Cominco American Resources, is the operator of the Buckhorn mine in Nevada. Its 76.4% share of the mine is expected to produce about 20,000 oz gold and 110,000 oz silver in 1987. After allowing for silver credits, the production costs are expected to be less than $200(US) per oz of gold.
In addition to Buckhorn, Cominco Resources has an interest in a large gold deposit in Chile currently in the feasibility study stage and partially delineated gold deposits in the U.S., Mexico and South America.
Other gold prospects in these areas and in Europe are ready for drilling of identified mineralization.
Based in Vancouver, Cominco Resources also has a strong position in base metals and other commodities, including advanced copper projects in Mexico and the U.S. and a beryllium project in the U.S.
Headed by George Tikkanen, president, and Geoffrey Harden, vice-president, Cominco Resources has an exploration, evaluation and development staff, working through subsidiary companies from offices in Canada, the U.S., Mexico, South America and Europe.
While continuing exploration on the acquired properties, Cominco Resources says it will aggressively seek new opportunities, with a major emphasis on gold.
Exploration expenditures in 1987 will be approximately $10 million.
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