An independent valuation of Louvem Mines of Val d’Or, Que., has concluded the gold-producing firm is worth between $2.40 and $2.72 per share, President P. Andre Lacroix reports.
The valuation was prepared by McNeil, Mantha and was based on reports provided by the engineering firm of Kilborn and Associates.
Louvem directors sought the valuation following an announcement by St. Genevieve Resources of Montreal that it was seeking to boost its ownership in Louvem to approximately 90%.
St. Genevieve, which owns about 56.5% of the common shares of Louvem, is currently offering to buy additional stock — up to 4.8 million common shares — on the open market, at $1.50 per share.
Lacroix says gold production at the company’s Chimo mine will be about 22,000 oz both this year and in 1989. It is projected annual gold production at the mine will rise to between 28,000 oz and 33,000 oz during the years 1990-1994. Louvem projects annual gold production of 40,000 oz by 1991 from all properties.
Louvem was recently trading on the tse in the $1.50 range.
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