A document containing details of the Mobrun polymetallic mine feasibility study, completed recently by Audrey Resources (TSE) and Minnova (TSE), has been delivered to about 20 companies. Audrey President Guy Hebert says he is confident that at least one of them will be prepared to finance development of newly discovered ore at the Rouyn-Noranda, Que., mine.
Partner and affiliate Minnova has until mid-January to decide whether future returns justify development costs that could be as high as $90 million.
Under an agreement with Audrey, Minnova is spending $10 million to earn a 50% stake in three new lenses discovered on the property. Probable reserves within the A, B, and C lenses now stand at 10.2 million tons of grade 0.72% copper, 5.39% zinc 39.45 grams silver and 1.51 grams gold per tonne.
But it is not clear yet whether Minnova will offer to purchase 10 million Audrey treasury shares at Audrey’s asking price of $5-7 a share, or launch a complete takeover of the Rouyn-Noranda company.
The treasury shares are being offered as a way of expanding the Mobrun operation to 3,000 from 1,400 tonnes per day, when the new lenses come on stream.
Northgate Exploration (TSE), which owns 18% of Audrey, has retained Wood Gundy of Toronto to represent its interests and those of minority shareholders. Shares of Audrey traded recently at $3.40 in a 52-week range of $1.70-4.
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