Eldorado Corporation Acquires Further Shares in Treminco Resources

Strategic Insights -

Eldorado Corporation Ltd., a major player in the mining industry, has strengthened its position in Treminco Resources Ltd. through a private placement, increasing its beneficial ownership to up to 16.87% of Treminco's issued capital. This acquisition is part of Eldorado's strategic investment in Treminco, which has significant interests in precious and base metal mining properties in Canada and Mexico. Eldorado has previously acquired an option to earn a 51% interest in the El Magistral Property, a copper-gold property in Mexico, and has committed to spending CDN$1.5 million over 30 months to exercise this option.

Key Takeaways:

  • Eldorado Corporation Ltd. has acquired 562,500 common shares and non-transferable share purchase warrants to acquire up to 281,250 common shares of Treminco Resources Ltd.
  • The private placement increases Eldorado's beneficial ownership to up to 1,643,750 common shares, representing 16.87% of Treminco's issued capital, assuming no other shares are issued.
  • Treminco Resources Ltd. has significant interests in precious and base metal mining properties in Canada and Mexico, including the El Magistral Property Copper-Gold Property in Sinaloa State, Mexico.
  • Eldorado has a vested interest in Treminco, having acquired the option to earn a 51% interest in the El Magistral Property through a CDN$1.5 million investment over 30 months.
  • The acquisition is for investment purposes, and Eldorado reserves the right to increase its ownership of Treminco's common shares.
  • The private placement was conducted off-market, and the acquisition does not involve joint or concerted action with any other person.

Statistics:

  • Up to 1,643,750 common shares owned by Eldorado Corporation Ltd.
  • Implied 16.87% beneficial ownership in Treminco Resources Ltd.
  • CDN$1.5 million investment in El Magistral Property over 30 months.
  • 562,500 common shares and 281,250 share purchase warrants acquired in private placement.
  • Toronto Stock Exchange, Vancouver Stock Exchange, and Bermuda Stock Exchange listing for Eldorado Corporation Ltd.

Sources:

  • Business Wire press release, December 8, 1995
  • Canadian Securities Exchange filings and announcements
  • Eldorado Corporation Ltd. press releases and investor materials (referenced in the Business Wire press release)