Queries Pamour share offer falls short

As you know, Jimberlana Holdings was directed to purchase all the outstanding shares of Pamour Inc. via Giant Acquisition Corp. This company should be called the “Giant Rip-off Corp.” instead since it made it quite clear that anybody who did not wish to tender his stock would end up with a security which would no longer be listed. This does not give the small investo r much of an option. E.R., New Hampshire

You may or may not be pleased to learn that while Giant Resources earlier this year sought to boost its interest to 100% in Pamour Inc. (TSE), the Australian parent was only able to raise its stake to 68% (from a 51% interest it held in Pamour through Jimberlana) and, according to Pamour`s vice-president finance Adrian White, the parent has no plans for a follow-up offer.

Giant Resources offered $10 per share for the 5.8 million shares of Pamour it did not already control. The stock at the time of the offer was selling at $6.75 on the TSE, although during the preceding 12 months it had traded as high as $17.25. Pamour shares were recently trading in the $8.50 range.

Pamour has been turned into a holding company by its parent and no longer has any direct gold production. Giant Yellowknife Mines (TSE), in which Pamour has a 41.8% interest and Giant Resources a 16.7% interest, now mines Pamour’s former gold property at Timmins. (Giant Yellowknife also produces gold in the Northwest Territories.) Other companies in which Pamour has a controlling interest include Erg Resources (TSE), which is involved in a gold tailings recovery project at Timmins, and Pamorex Minerals (TSE), which acts as the group’s exploration arm.