Jordex announces Bolivian sale

A decision by Jordex Resources (TSE) to sell stock interests in a Bolivian zinc company was attributed to the general zinc market decline. As a result, substantial losses are being incurred.

Jordex agreed to sell its 67% common stock and $1.75 million preferred stock interest in Compania Minera Tiwanacu S.A. to the minority shareholders for future considerations.

“After several years of building an efficient operating company and raising production of zinc concentrate to 50,000 tons per year, the necessity of this decision to withdraw from the company’s Bolivian operations was difficult,” stated Jordex President Brian Hinchcliffe.

The sale will result in a $3.5-million writeoff for common equity, and $1.8 million in debt owed to Jordex. Tiwanacu is obliged to buy the preferred stock at face value by Sept. 30, 1995.