Mobrun results make Audrey ripe for Northgate takeover

That is the rumor making the rounds in Quebec investment circles. According to a report by a Montreal investment weekly, Audrey President Guy Hebert has already acknowledged to colleagues that Northgate wants a 100% stake in his company.

In a telephone interview with The Northern Miner, Hebert acknowledged that Northgate is interested in his company. Three weeks ago Northgate upped its interest in Audrey to 32% from 28% by acquiring a block of 500,000 shares at $3.75 each.

The investment came just six months after Northgate’s last foray into the market when it picked up 850,000 Audrey common shares at $2.51 per share.

“Northgate has stated its intention to increase its position but we will have to wait and see what happens,” said Hebert who has spent the past 10 months overseeing an expansion program at Audrey’s 70%-owned Mobrun mine where production is scheduled to resume again later this month.

In addition to building a new 1,100-ton-per-day milling facility the company has succeeded in outlining proven and probable reserves of 6.6 million tons of grade 0.66% copper, 5.84% zinc, 0.05 oz gold and 1.27 oz silver per ton in a recently discovered massive sulphide lens.

The report by the magazine Les Affaires states that Minnova Inc. (TSE), which holds a 30% non- participating interest at Mobrun would be a rival bidder for the Audrey shares not already controlled by Northgate.

While Hebert refused to comment on what Minnova’s intentions are, Northgate spokesman Gregg Bowes said his company wasn’t thinking along the lines of an Audrey takeover bid. “As far as we are concerned, we haven’t decided what we are going to do with Audrey,” he said.

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