Trimin future uncertain after Hanson Lake deal closes

Billiton Resources Canada (TSE) has completed the purchase of Trimin Resources’ (TSE) 32.9% interest in the Hanson Lake project near Flin Flon, Man. Billiton, which paid $17.5 million for Trimin’s stake in the 11-million-ton polymetallic deposit, says the purchase will take the company one step closer to becoming a significant Canadian base and precious metal producer.

The acquisition follows Billiton’s recent purchase of part of TCPL Resources stake in the Selbaie polymetallic mine in Quebec, to bring its share in that project to 39%.

The future of Trimin remains a question mark, although promotor Murray Pezim has expressed an interest in acquiring a major share of the cash-rich junior. Through Eurus Resource (VSE), Pezim intends to make a bid for up to two million common shares of Trimin, or just under 50% of the total shares outstanding.

Under the offer, each Trimin shareholder would receive one common share of Eurus and $1 for every one Trimin share tendered. Eurus shares recently traded at about $1.40 while Trimin shares are hovering at just over $2.

Adrian Resources (VSE), another Pezim junior, also issued a press release announcing its intention to purchase up to 400,000 shares of Trimin, but later retracted this statement. William Campbell, secretary for Adrian, said Adrian realized after issuing the first release that the advice upon which the company had based its purchase decision was incorrect.

Campbell said Eurus is interested in Trimin’s potential as an investment vehicle and not in its remaining exploration properties.