Mazarin projecting profitable year

The president of Societe d’Exploration Miniere Mazarin (ME), Regis Labeaume, is predicting a profit of $5 million for the fiscal year ending March 31, 1993. Based on the current 27.7 million outstanding shares, these results would give a net profit of 18 cents per share.

Mazarin, based in Quebec City, recently acquired the asbestos assets of the Quebec government’s Societe nationale de l’amiante (SNA): 100% of Bell Asbestos Mines, 54.6% of Asbestos Corp. (TSE) and 100% of Atlas Turner. Mazarin and a group of business persons in the Thetford Mines, Que., area are paying $34.4 million for the assets.

Mazarin is a junior exploration mining company with a variety of property interests. Since the acquisition of SNA’s assets, Mazarin management has indicated that it will try to develop the company’s Lac Knife graphite deposit near Fermont, Que., and evaluate other possible mining investments. Speaking at the company’s recent annual meeting, Labeaume said that of the 18 cents per share net profit, 5 cents will come from an extraordinary item — a pension plan settlement at Bell.

The series A debentures, worth $2 million and issued to finance the transaction with SNA, may be converted during the next five years into about 4.7 million common shares of the company, Labeaume said.

Warrants have also been issued to the subscribers of the series A debentures and share purchase options have been granted to directors, officers and employees of the company.

Conversion of the debentures and exercise of the warrants and options before March 31, 1993, would result in issued capital stock of almost 36 million common shares.

At the annual meeting, shareholders elected Labeaume, Michel Cyr, Marcel De Rouin, Michel Laplante, Laurier Pedneault, Claude St-Jacques and Pierre St-Jacques as directors. Cyr was named chairman and De Rouin, executive vice-president.