While negotiations continue between Societe Miniere Louvem (TSE) and Noranda Minerals over a major share purchase by the latter in Louvem, Noranda has gone ahead with a small stock acquisition. Noranda Minerals, a unit of Noranda (TSE), recently exercised an option, pursuant to an earlier agreement, to subscribe to 400,000 treasury common shares of Louvem at $10.50 per share.
Noranda now owns more than 4.1 million shares of Louvem, representing a 22.7% interest in the Montreal-based company.
Louvem is one of the principal players in the Louvicourt Twp. massive sulphide discovery near Val d’Or, Que. The base metal find is the subject of an ownership dispute between Louvem and Aur Resources (TSE) of Toronto.
The corporate parent of Louvem, St. Genevieve Resources (TSE), recently tried unsuccessfully to settle its legal dispute with Aur and sell Noranda a controlling interest in Louvem. The settlement fell through after Noranda was awarded a temporary injunction by a Quebec court.
St. Genevieve Chairman Pierre Gauthier has since placed a time limit on his latest negotiations with Noranda. Gauthier says Noranda has until Sept. 10 to decide whether to buy 4.1 million shares of Louvem at $8.10 per share.
Analysts say Noranda considers the $8.10 share price to be too high.
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