Newmont Second Capital Corp. a wholly-owned subsidiary of New York-based Newmont Mining, recently sold its 34% stake in Sherritt Gordon Mines (TSE) for approximately $40.8 million(US).
Sprott Securities of Toronto bought Newmont’s 7.5 million Sherritt shares at $6.75(C) per-share before re-selling 2.5 million of them to Vencap Equities Alberta Ltd. for $18.1 million.
With an 11.2% interest in Sherritt, Vencap says it will hold the largest single share block in the Toronto- based metals and special products producer.
The sale by Newmont was part of a plan to reduce its debt-load through asset sales to $1.6 billion (US) from $1.9 billion at the end of 1987. After paying out a $2.2 billion fourth quarter dividend to thwart a takeover bid by Texas oilman T. Boone Pickens, the company has also succeeded in lowering its estimated annual debt interest costs to $130 million from $210 million.
Newmont says the cash realized from the Sherritt sale would be applied to additional debt reduction.
Be the first to comment on "Newmont sells stake in Sherritt Gordon"