Jipangu ups its stake in Cambior

Japan’s Jipangu has agreed to convert a US$3.7-million subordinated loan to Cambior (CBJ-T) into equity via a private placement of Cambior shares.

Under the deal, Jipangu, already Cambior’s largest shareholder, will subscribe to about 6.5 million shares at 87 apiece. The closing price of Cambior’s shares on the Toronto Stock Exchange on Tuesday was 67.

Proceeds from the private placement will be used for the final repayment of the $3.7-million mortgage on Cambior’s 50% interest in the underground Niobec niobium mine in Quebec.

Niobec is just one of Cambior’s four remaining producing assets. The others are the wholly owned, underground Doyon division and a 50% stake in the underground Sleeping Giant gold mine (both in Quebec) and an effective 100% interest in Omai open-pit gold mine in Guyana.

The share acquisition, which is expected to close shortly, will increase Jipangu’s stake in Cambior to 27.1% from 22%.