Sale of Hanson interest triggers Trimin dispute

Equity Reserve and Equity Investments, mining mutual funds which together control about 25% of the outstanding shares of Trimin Resources (TSE), may be seeking to oust Trimin’s current management team at a meeting to be held next month in Vancouver. The Equity companies had planned to propose a new slate of directors at Trimin’s meeting of shareholders in late August. But Trimin management applied for and received an injunction from the Supreme Court of British Columbia allowing it to adjourn the meeting until Oct. 15.

Doug Hooper, vice-president of the Equity group companies, told The Northern Miner that the two companies are currently in discussions and a resolution of certain “differences” could be close at hand. Officials of Trimin were unavailable for comment.

If the parties do not reach an agreement, Hooper said the Equity companies would prepare and release a dissident information circular which would provide details of their position. It is believed the dispute involves differences of opinion as to how the sale of a Trimin asset should benefit shareholders.

Trimin’s key asset is its 32.9% stake in the Hanson Lake project near Flin Flon, Man., which is reported to contain 10.8 million tons grading 0.95% copper, 5.76% zinc, 0.42% lead, 0.015 oz. gold and 0.73 oz. silver per ton. The project is operated by Cameco which holds the remaining 67.1% interest.

Trimin recently agreed to sell its interest in the project to Shell Group affiliate Billiton Resources Canada for $17.5 million. The sale, subject to shareholder and other approvals and conditions, is to be voted on at the company’s forthcoming meeting.