The company also says it will not be exercising its option to acquire a further 20% of Bond from Dallhold Investments at $8.25 per share. Dallh old is the pers onal holding company of Alan Bond which has a 58% interest in Bond International.
“After the option agreement was entered into, serious due diligence and negotiations took place which explored the possibility of Corona gainin g control of Bo nd,” Corona President Peter Steen said. “After not being able to reach an amicab le and mutually acceptable price agreement on purchase of control, Corona decide d to eliminate its position.”
Corona recently reported earnings of $18.3 million (before unusual and extraordinary items) for the first six months of 1989, compared with $2 1.8 million for the same period last year. During the second quarter of 1989, Corona reported ea rnings of $13.9 million (before unusual and extraordinary items), compared with $10.2 million for the same 3-month period last year.
The earnings take into account Corona’s ownership of the Williams mine at Hemlo in northern Ontario. The Supreme Court of Canada recently dismiss ed an appeal by LAC Minerals of a 1986 lower court decision awarding the mine to Corona.
Production in 1989 at the Williams mine (Corona and Teck Corp. previously agreed to become joint operators of the mining project) is expected to total 490,000 oz.
In other business, Corona reports it has acquired an additional 1,166,861 common shares of Dolphin Explorations (TSE) for $700,000. Dolphin, acti ve in Newfoun dland, will apply for a $300,000 grant for exploration financing under the Canad ian Exploration Incentive Program.
The transaction boosts Corona’s direct interest in Dolphin to 25.5%. Corona’s interest in Dolphin becomes 45% on a fully-diluted basis.
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