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Gold/Mining/Energy : Canadian REITS, Trusts & Dividend Stocks -- Ignore unavailable to you. Want to Upgrade?

To: Kitskid who wrote (555)	10/10/2000 10:31:39 PM
From: kingfisher	Respond to of 11633

Thanks for posting that link on Royalty trust. Great Stuff! Regards, Richard

To: Kitskid who wrote (555)	12/16/2000 11:04:05 PM
From: Kitskid	Read Replies (1) \| Respond to of 11633

Rio Tinto got a great deal: LIF.un @ $13.50. We'll see more takeovers like this because of the low Canadian dollar. ---------------------->snip<-------------------- northernminer.com Rio Tinto to make offer for larger slice of IOC 12/15/2000 British mining giant Rio Tinto (RTP-N) says it intends to make a cash offer to purchase all of the units of Labrador Iron Ore Royalty Income Fund (LIF.UN-T) for $13.50 per unit. "The acquisition of the fund will provide Rio Tinto the opportunity to consolidate its position in Iron Ore Company of Canada (IOC)," says Leigh Clifford, Rio’s chief executive. Rio picked up a 56.1% interest in IOC, Canada's largest iron ore producer, through its acquisition of diversified Australian miner North Limited. The fund is an unincorporated, limited-purpose trust. Through its wholly owned subsidiary, Labrador Mining and Exploration Company, it owns an 18.9% equity interest in IOC. Japan’s Mitsubishi holds 25% of IOC. The fund is also entitled to a 7% royalty on all sales of IOC and a commission fee of 10¢ per tonne on all iron ore products sold by IOC. IOC operates a mine, concentrator and iron ore pellet-making plant at Labrador City in Labrador and port facilities at Sept-Îles on the Gulf of St. Lawrence in Quebec. The company runs a 420-km rail link connecting the mine to the port. Rio’s offer represents a premium of about 17% above the fund’s average closing price of $11.85 over the last 10 trading days. The total value of the offer is $405 million. The offer is being made through Rio's 100%-owned subsidiary, Rio Tinto Canada. It is conditional on at least 75% of the units being tendered and is subject to regulatory approval. Trustees are expected to obtain an independent valuation of the fund in the next few weeks. Rio plans to mail its offer soon thereafter. In early Friday trading on the Toronto Stock Exchange, the fund was trading at $13.95, up $2.45, or 21.3%, from its previous close.