Boliden sells Myra Falls mine
Boliden and the Canadian publicly listed mining company Breakwater
Resources Ltd ( Breakwater) have signed a letter of intent whereby
Boliden plans to sell its wholly-owned Canadian subsidiary Boliden
Westmin (Canada) Limited (BWCL) to Breakwater. BWCL is the owner of the
Myra Falls mine. Boliden will receive 18 million newly-issued Breakwater shares with a current market value1 of around SEK 67 million.
- The sale of Myra Falls is a logical step now that we have completed
the transaction with Outokumpu. We can now concentrate our management
resources fully on integrating the acquired mining and smelting
operations in the new Boliden, says Jan Johansson, President and CEO of
Boliden.
In addition to the shares, Boliden will also receive 5 milllion warrants
exercisable at CAD 1.00 per common share until January 28, 2009. Boliden
expect to earn a minor capital gain as a result of the sale of Myra
Falls.
The transaction, which is expected to be completed at the beginning of
the second quarter of 2004, is subject to the usual conditions,
including, among other things, due diligence by both parties, regulatory
approval and approval by the respective Boards of Directors.
For further information, please contact:
Jan Johansson, President and CEO
telephone +46 8 610 16 02, + 46 70 555 02 02
Ulf Söderström, Senior VP Group Communications
telephone +46 8 610 15 57, +46 70 618 95 95
Boliden is one of the leading mining and smelting companies in the world
with operations in Sweden, Finland, Norway, Ireland and Canada.
Boliden's main products are copper, zinc, lead, gold and silver.
Exploration and Recycling of Base Metals are also important within the
company. The number of employees is approximately 4 800 and the turnover
amounts to approximately EUR 1.6 billion annually.
The Boliden share is quoted on the Stockholm Stock Exchange in Sweden as
well as on the Toronto Stock Exchange in Canada.
Breakwater Resources Ltd is listed on the Toronto Stock Exchange with
the symbol (TSE-BWR). Market value is based on the closing price of the
Breakwater share of CAD 0.67 on February 13, 2004.