Falconbridge to keep shares held by McIntyre for moment

Under the plan, which was announced last July when Falconbridge paid Placer Dome Inc. (TSE) $960 million for a 24.7% block of its own shares, Falconbridge’s stake in McIntyre was scheduled to increase to 100% from 92.3%.

However, McIntyre continues to hold 9.2 million Falconbridge shares representing a 12.4% interest in the world’s second largest nickel producer. The Falconbridge stake is McIntyre’s only significant asset and it will remain in circulation for the time being, according to Falconbridge Chairman Bill James.

The decision not to cancel the McIntyre shares means that Noranda Inc.’s stake in the nickel miner remains at 19.9% until it acquires more Falconbridge shares.

Noranda recently filed a notice with the Toronto Stock Exchange signalling its intention to acquire an additional 10%.

Holders of 24,397 McIntyre shares elected to exchange their shares for cash, while holders of 257,065 shares decided to trade them in for cash, according to Falconbridge spokesperson Ann O’Quinn.

For every 10 common shares of Falconbridge received, the McIntyre shareholders were scheduled to obtain one common share of Falconbridge Gold Corp.

The 51%-owned Falconbridge Ltd. subsidiary is expected to produce about 67,000 oz gold this year from the Owl Creek and Hoyle Pond mines near Timmins, Ont.

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