Noranda, Placer both looking at Dome Mines shares

Noranda Inc. and Placer Development both admit they have an interest in the possibility of buying the shares of gold-producer Dome Mines held by Dome Petroleum, but neither Noranda nor Placer appear to have gone beyond the internal discussion stage on such a move.

The debt-plagued Dome Petroleum holds 20.8 million shares of Dome Mines, worth in the order of $340 million. At least three proposals, including one from TransCanada PipeLines, have been made in recent days to buy the assets of the big oil company, including the Dome Mines holdings..

“We have looked at it, (the possibility of buying the Dome Mines shares),” Noranda Chairman Alfred Powis tells The Northern Miner, “but I’m not aware that we’ve carried it very far.”

Mr Powis added that the TransCanada offer to Dome Petroleum, or any other such purchase offer, would not really change the picture as far as any Noranda interest in the Dome Mines shares is concerned.

At Vancouver-based Placer Development, J. M. McConville, vice-president corporate affairs and general counsel, also said there “was substance” to the recent rumors (N.M., April 13/87), concerning Noranda’s and Placer’s interest in Dome Mines.

“We have looked at it, too,” he said, “and have had some discussions on it, but there is nothing specific as yet.” He declined comment on the effect of the Dome Petroleum buyer interest.

Dome Mines President Henry Brehaut said the situation regarding any possible sale of the Dome Mines shares wouldn’t likely change under any Dome Petroleum purchase scenario.