Exploration giant Lundin makes €7.2m cash offer for Belmore site
Published 13/06/2011 | 05:00
INTERNATIONAL exploration mining giant Lundin Mining Corporation said yesterday that it "has good anticipation of future good results" from a 350 sq km silver, lead and zinc prospect in Co Clare.
Last Thursday, hopes of establishing a mine at the site received a major boost, with Belmore Resources recommending to its shareholders to accept a €7.2m cash offer from the Canadian corporation Lundin to buy out the company.
Belmore Resources's sole asset is the Co Clare prospect and the offer represents a windfall for its shareholders -- 60pc of whom are Irish.
Speaking yesterday from Ontario, Canada, Lundin Mining Corporation's senior vice-president of exploration and new business development, Neil O'Brien, said: "If the deposits are there, we will find them and push on to establish it as the next mine for the Lundin Corporation."
Lundin already operates a zinc mine at Galmoy, Co Kilkenny. Lundin's proposed buy-out of Belmore Resources comes against the background of the rising value of silver in the past 12 months.
With 12pc of Belmore Resources' shares, director Patrick Mahony -- who didn't take a salary from Belmore -- stands to receive around €864,000 from the proposed deal, which requires 80pc approval from the company's shareholders.