Apparently fed up with waiting for his company’s share price to move upward, St. Genevieve Resources (TSE) Chairman Pierre Gauthier has retained Merrill Lynch Canada to find a buyer for the Montreal-based holding firm. With interests in nine exploration companies including Societe Miniere Louvem (TSE) and its Val d’Or, Que., base metal discovery, Gauthier believes the shares are worth double the recent trading price of $1.12. eports in the Montreal news media say Gauthier, who was unavailable for comment, will be looking for around $2.50 a share before parting with his substantial holding.
At presstime, Gauthier, a former broker with Burns Fry, held about 11% of St. Genevieve’s 28.6 million issued shares, bringing the number owned by management and a group of Swiss shareholders to about 29%.
St. Genevieve debentures, convertible at $2.27, would increase the number of shares issued by 6.9 million.
The company’s best known asset is a 50% interest in Louvem, which is developing the Louvicourt Twp. base metal project in a 55-45% joint venture with Toronto-based Aur Resources (TSE).
With surface exploration still in progress, minable reserves are estimated by the brokerage firm Loewen, Ondaatje, McCutcheon & Co. of Toronto to be 20 million tons grading 5.2% copper, 2.3% zinc, 1 oz. silver and 0.04 oz. gold per ton.
As Noranda currently holds 4.1 million of Louvem’s 18.1 million issued shares and has an option to buy one million more (from March 15 to April 15) at market price plus 14.9%, the metals giant has emerged as a likely target for Merrill Lynch. Aur isn’t ruling itself out of the bidding although secretary Peter McCarter hasn’t yet been approached regarding the sale.
St. Genevieve sold its 50% stake in the Chimo gold mine to Cambior (TSE) last May and has no production revenue at present. The company is still involved in exploration in the Val d’Or region through a joint venture with Wrightbar Mines (ME).
St. Genevieve spokesman Pierre La Flamme says the company is bullish on the prospects for a grassroots project at Bellechasse Que., where Golden Hope Mines (COATS), St. Genevieve and St. Genevieve affiliate Exploration Duverny (ME) continue to uncover high-grade gold veins. St. Genevieve can earn a 50% stake in the property.
With consolidated debt standing at $57 million, management values St. Genevieve at around $180 million.
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