General Mining buys Cheni stake

Mining giant General Mining, Metals and Minerals recently agreed to purchase 3.2 million shares of Cheni Gold Mines (TSE) held by BRGM (Bureau de Recherches Geologiques et Minieres) of France.

The purchase price of the transaction was not disclosed. The purchase gives General Mining about 45% of BRGM’s shareholding in Cheni. Prior to the placement, BRGM held about 7.15 million of Cheni’s 11.1 million outstanding shares.

BRGM also holds options giving it the right to purchase up to 11.1 million Cheni shares at prices ranging from 50 cents to $1 to March 31, 1997. BRGM can also purchase up to 50 million French francs ($10.6 million) worth of shares.