Metall Mining close to deal on Australia metals acquisition

It has yet to announce the major acquisitions which were promised during a June, 1987, launching, but executives from Toronto-based Metall Mining were far from subdued during a recent press conference attended by The Northern Miner.

In the swank surroundings of the downtown Four Seasons Hotel, the Toronto subsidiary of West German metals giant Metallgesellschaft AG held a homecoming-style luncheon for some of the city’s senior business writers.

During an informal meeting, press were told that Metall is in no hurry and under no pressure from Metallgesellschaft to spend $170 million which it has set aside for acquisitions. Metallgesellschaft is one of the world’s leading non- ferrous metal traders and holds a 62% interest in the new company.

In a previous interview with The Northern Miner, President Dr Klaus Zeitler indicated that Metall Mining would attempt to focus on medium sized base metal plays with a precious metal content.

Metall already holds minority interests ranging from a 7.5% interest in the Ok Tedi mine in Papau New Guinea, 16.7% of the Afton copper and gold mine near Kamloops, B.C., and 24.5% of a Turkish zinc/copper deposit.

In addition to its $170-million war chest, the company has indirect interests in a number of Canadian mining giants including Teck Corp. and Comin co Ltd.

“We are attempting to concentrate on countries and metals where we understand the business and can take a management position,” said Dr Zeitler.

According to the Metall president, he and vice-president Norman Hardie have looked at three major acquisition targets in Canada, the United States and Australia.

While he says the company is close to an agreement on a western Australian base metals play, a couple of additional opportunities have passed them by.

“Perhaps we restrict ourselves too much but in one situation we didn’t see any management possibilities and others didn’t meet our criteria,” said Zeitler who promises to complete at least one acquisition this year.

“Successful mining companies don’t announce new projects every month,” he said.

Metall was trading recently on the Toronto Stock Exchange at $10.88 in a 52-week range of $17.50 and $8.75.