Nickel and base metal giant Falconbridge has filed a preliminary prospectus with the Ontario Securities Commission with regard to an initial public offering of its common shares.
Although details of the offering have yet to be released, Falconbridge hopes to raise between $1.2 and $1.3 billion.
The money will be used to explore and develop new projects, as well as reduce the company’s debt which stands at $1.8 billion.
At present, Falconbridge is jointly owned by Trelleborg AB of Sweden and Noranda (TSE).
Noranda is expected to subscribe to 45-50% of the issue, financing for which will come from existing funds and credit facilities. Trelleborg, which has been losing money in recent years, is not expected to participate in the underwriting and, as a result, will see its ownership diluted to about 30% from 50%.
It is anticipated the public will own the balance of the issue, which is estimated to be 20-25%.
The underwriting will be sold by 13 of Canada’s largest investment brokers. Founded in 1928, Falconbridge has mining and milling operations in Sudbury and Timmins, Ont., Norway and Dominican Republic. It also has a one-third interest in the Collahuasi copper project in northern Chile and a 100% interest in the Raglan nickel-copper project in the Ungava area of northern Quebec.
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