First Toronto selling Forsayth interest

First Toronto, which says its share price is at a substantial discount to its break-up value, plans to sell its 30% interest in Forsayth N.L., an Australian mining company.

Forsayth has an interest in the Mt. Gibson gold mine in Australia. Gold production net to Forsayth is about 100,000 oz annually. Interests in associated companies exposes the company to another 100,000 oz of gold per year.

Since First Toronto’s stake represents the largest block of shares, the company is seeking a premium to market for the control block. The market value has ranged between $60 million-$90 million(A) over the past year.

Upon completion of the sale, First Toronto will consider a special dividend or a distribution of capital to its shareholders. In 1988, the company paid a dividend of 50 cents per share.

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