Claude,
Have you had time to digest the takeover bid for Cambior by AUR Resources yet?
At first glance it would seem to me to be a plus, as AUR has no debt and almost 100 million in cash to finance on going operations and advanced projects. Do you see it as a plus for Cambior,(and Metallica) or do you think they will fight it?
Keith
NEWS RELEASE TRANSMITTED BY CANADIAN CORPORATE NEWS
FOR: AUR RESOURCES INC.
TSE SYMBOL: AUR
JANUARY 17, 2000
AUR RESOURCES LAUNCHES TAKE-OVER BID FOR CAMBIOR INC.
TORONTO, ONTARIO--
Media Notice: Aur Resources invites you to attend one of two news
conferences to discuss this announcement. The first news
conference will take place in Toronto at 11:00 a.m. (ET) on
January 17, 2000, at the Royal York Hotel, Salon 2, 19th Floor,
100 Front Street West. There will be a live audio bridge to the
Toronto news conference for those not able to attend in person. To
access, please dial (416) 641-6255. To listen to a rebroadcast of
this event, please dial (416) 626-4100, reservation # 14196390,
until Friday, January 21, 2000. The second news conference will
take place in Montreal at 3:30 p.m. (ET) on January 17, 2000, at
the Ritz Carlton Hotel, Salon Bleu, 1228 Sherbrooke Street West.
Summary slides will be posted at www.barnesir.com
Aur Resources Inc. (TSE: AUR) today announced that it is
initiating a take-over bid for all the issued and outstanding
common shares of Cambior Inc. (TSE: CBJ) on the basis of one
common share of Aur for each 1.1 common shares of Cambior. This
represents a value of $2.40 for each Cambior share, or a premium
of 45% based on the respective closing prices of the Aur common
shares and the Cambior common shares of $2.65 per share and $1.65
per share on The Toronto Stock Exchange on January 14, 2000.
"Aur and Cambior combined will create a strong, international base
metal and gold company well positioned for growth," said Dr. James
Gill, President and CEO of Aur Resources. "Cambior shareholders
will benefit from an attractive premium, Aur's strong balance
sheet and a management team committed to financial prudence and
operating excellence. One of the key benefits for all shareholders
will be the opportunity to participate in the advancement of a
number of highly prospective development projects."
Dr. Gill also noted the potential for the New Aur to realize at
least $10 million in corporate and administrative efficiencies
after the first year of combined operations. He added that the New
Aur will play a central role in sustaining and enhancing the
mining industry in Quebec, with six operating mines and over 100
exploration projects in the province.
/T/
Based on forecasts of Aur and Cambior, the New Aur's 2000 metal
production will be:
* Gold: 639,000 oz
* Copper: 87 million lbs
* Zinc: 158 million lbs
* Silver: 929,000 oz
* Niobium: 2.6 million lbs
/T/
Aur has requested that Cambior provide it with a copy of its
shareholders' list. Aur intends to mail its formal offering
circular in connection with its bid upon receipt of such list.
Aur's bid will expire 21 days after the said mailing.
The bid is subject to the usual conditions, including the
requirements that at least two-thirds of the Cambior common shares
are deposited under the bid and not withdrawn and the board of
directors of Cambior has redeemed all outstanding rights under or
waived the application of Cambior's Shareholder Rights Protection
Plan.
Aur currently owns 3,433,800 Cambior common shares, representing
approximately 4.9% of Cambior's issued and outstanding common
shares.
Aur has retained HSBC Securities (Canada) Inc. to act as its
financial advisor and to form a soliciting dealer group to solicit
acceptances of its bid.
Aur is a Canadian company active in the acquisition, exploration,
development and mining of mineral properties. Its principal
assets consist of: its interests in the Louvicourt
copper-zinc-silver-gold mine near Val d'Or, Quebec, and the
Andacollo copper mine in Chile; its portfolio of exploration
properties located principally in northwestern Quebec, in central
Manitoba and Saskatchewan, and Nevada; and, its working capital of
approximately $98.1 million, as at September 30, 1999. Aur is the
operator of both the Louvicourt and Andacollo mines.
Cambior is a Canadian company involved in the mining and exploring
for gold and other metals and minerals in the Americas. Its
principal operating assets consist of its interests in the Doyon
and Sleeping Giant gold mines in northwestern Quebec, the Omai
gold mine in Guyana, the Bouchard-Hebert and Langlois polymetallic
base metal mines in northwestern Quebec, and the Niobec niobium
mine in northwestern Quebec. Cambior also holds a portfolio of
development and exploration properties in the Americas.
Background information of the offering and its benefits are
attached. Summary slides can be accessed on the worldwide Web at
www.barnesir.com
INVESTOR FACT SHEET
The New Aur: Creating Value Through Strength
Aur Resources Inc. is a low-cost, high-quality base metal and gold
producer with a principal focus on copper. The company is
committed to operating excellence and financial strength.
Aur launched a takeover bid for Cambior Inc. on Jan. 17, 2000
/T/
The Offer: Exceptional shareholder value
-----------------------------------------
- One Aur share for 1.1 Cambior shares.
- Equivalent to a value of $2.40 per Cambior share; represents a 45%
premium to market price of Cambior shares.*
- Conditional on 2/3 of Cambior shares being tendered and Cambior's
poison pill being waived. Expires 21 days after mailing of takeover
circular to Cambior shareholders.
- Current Aur shareholders will own 55% of the New Aur; current Cambior
shareholders will own 45%.
- Based on closing prices of $2.65 for Aur shares and $1.65 for Cambior
shares on January 14, 2000.
The New Aur: Strategic Benefits
-------------------------------
1. Creates larger, stronger base metals & gold company
2. Achieves critical mass for continued growth
3. Acquires financial strength to develop new projects
4. Gains enhanced technical and operational depth
5. Provides for administrative and operational cost savings
6. Expands market capitalization and liquidity
7. Preserves existing asset base
8. INCREASES SHAREHOLDER VALUE
The Companies: Macro Data
-------------------------
Aur Cambior
------------------------------------------------------------------------
Mines Two Six
------------------------------------------------------------------------
Production Mainly copper; Mainly gold;
also zinc, gold, silver also zinc, copper,
niobium
------------------------------------------------------------------------
Development projects 1(plus) 3(plus)
------------------------------------------------------------------------
Exploration 100(plus) in 100(plus) in
properties Canada, U.S., Latin Canada, U.S., Latin
America America
------------------------------------------------------------------------
Market capitalization C$200 million C$116 milllion
------------------------------------------------------------------------
1998 Revenues C$98 million US$344 million
------------------------------------------------------------------------
Working capital * C$98 million US$7.2 million
------------------------------------------------------------------------
Bank debt * Nil US$181 million
------------------------------------------------------------------------
*As of third quarter 1999
/T/
The New Aur
The combination of Aur and Cambior will produce the
seventh-largest gold producer in North America and the largest
copper producer in Quebec.
/T/
Proven & Probable Reserves Resource
---------------------------- ----------------------------------------
Gold 5.1 million oz Gold 7.0 million oz
---------------------------- ----------------------------------------
Silver 18.2 million oz Silver 140.2 million oz
---------------------------- ----------------------------------------
Zinc 1.9 billion lbs Zinc 177 million lbs
---------------------------- ----------------------------------------
Copper 662 million lbs Copper 49,091 million lbs
---------------------------- ----------------------------------------
Niobium 84.9 million lbs Molybdenum 289 million lbs
---------------------------- ----------------------------------------
Projected 2000 Production Projected 2000 Results (US$ millions)
---------------------------- ----------------------------------------
Gold 639,000 oz Metal revenue $356.0
---------------------------- ----------------------------------------
Silver 929,000 oz Operating cash flow $97.4
---------------------------- ----------------------------------------
Zinc 158 million lbs Mine capital investment $44.0
---------------------------- ----------------------------------------
Copper 87 million lbs Net operating cash flow $53.4
---------------------------- ----------------------------------------
Niobium 2.6 million lbs
---------------------------- ----------------------------------------
/T/
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