The Reminder is making its archives back to 2003 available on our website. Please note that, due to technical limitations, archive articles are presented without the usual formatting.
Here is the press release from Ontzinc Corp. announcing the pending deal: Ontzinc Corporation (TSXV-OTZ) is pleased to announce it has entered into an agreement dated October 7, 2004, to acquire 100 per cent of Hudson Bay Mining and Smelting (HBMS) from Anglo American International SA (Anglo American) for the purchase price of $325 million, which is subject to final adjustment. The acquisition will transform Ontzinc into a significant zinc and copper producer. Effective on closing of the transaction, and subject to shareholder approval, Ontzinc will change its name to Hudson Bay International Minerals Corp. (Hudson Bay International). RBC Capital Markets, a member of the RBC Financial Group, acts as exclusive financial advisor to Anglo and Credit Suisse First Boston acts as exclusive advisor to Ontzinc. HBMS is a Canadian mining company, which has a strong ore reserve and resource base, substantially refurbished operations and an experienced workforce and management team, which will remain in place. The current operations have a known reserve and resource life of 13 years with growth potential. In addition to the extension of known ore bodies, HBMS's exploration team has a proven record of discovering new ore bodies, being credited with 19 of the 25 mines HBMS has developed in its 75-year history. HBMS's large land position of 280,000 hectares in Manitoba and Saskatchewan offers excellent potential for further discoveries. HBMS has recently undergone a significant transformation with the completion of the 777 group of projects. While developing Chisel North zinc mine and the 777 mine, HBMS also expanded the zinc plant and installed a state-of-the-art zinc cell house, expanded the Flin Flon concentrator and upgraded related infrastructure. Based upon the unaudited financial statements of HBMS for the six months ended June 30, 2004, HBMS had revenues of approximately $265 million, net assets of $349 million and net profit of $25 million. Gregory J. Peebles, the chairman of Ontzinc, stated that: "Ontzinc is delighted with having been chosen as the successful bidder for HBMS, after a long and detailed process. The transaction will result in the repatriation to Canada of one of its oldest and best known mining companies. Following the transaction, Hudson Bay International will have world class management and mining expertise. Given its copper and zinc reserves and the refurbishment of much of its plant and equipment, we expect that Hudson Bay International will play a significant role in the global base metals industry." Closing of the transaction is expected by year end and is conditional on the closing of financings for the purchase price. GMP Securities Ltd. has indicated its intention to lead an equity offering for a portion of the purchase price. Ontzinc intends to raise the balance of the purchase price through a debt financing. See 'Connection' P.# Con't from P.# In connection with the proposed acquisition, Ontzinc intends to seek shareholder approval for a consolidation of its common shares. Completion of the transaction is subject to the receipt of all necessary shareholder, regulatory and third party consents, satisfaction of customary closing conditions and the raising of the required financing. Ontzinc has engaged A.C.A. Howe International Ltd. to prepare a technical report on HBMS's mining assets in accordance with National Instrument 43-101 of the Canadian Securities Administrators. The information herein on mineral reserves and mineral resources and future production estimates is subject to change based upon the findings of A.C.A. Howe.12/10/04
