Faced with mounting debts and a string of new projects to finance, Vancouver-based Cominco (TSE) is giving up its direct participation in the Louvicourt Twp. massive sulphide discovery at Val d’Or, Que.
Under a previous arrangement, Cominco was set to participate with affiliate Teck (TSE) in earning a 25% project interest by paying Aur Resources (TSE) $15 million and contributing $55 million toward mine development. But Cominco recently informed Teck that it would prefer to remain as a significant shareholder of Aur without taking a further financial investment in the project. Cominco currently holds about half of the 21% Aur interest accumulated by it and Teck.
As a result, Teck will own a 25% interest in the Louvicourt project, in addition to its stake in Aur, while Aur and Noranda (TSE) subsidiary Societe Miniere Louvem (TSE) retain 30% and 45% respectively.
However, the Cominco decision will have no effect on development of the Louvicourt project where operator Aur is completing the tendering process for exploration and production shafts. Diluted minable reserves now stand at 22.8 million tonnes grading 4.01% copper, 1.99% zinc, 1.3 grams gold and 31 grams silver per tonne. Aur Secretary Peter McCarter said sinking of the exploration shaft should begin next month, while the production shaft is set to start in August.
Analysts say Cominco’s decision not to participate in financing Louvicourt comes as no surprise.
Due to a worldwide slump in metal prices, Cominco reports a loss of $41.3 million or 56 cents a share in 1991.
Be the first to comment on "Cominco won’t up stake in Louvicourt"