Noranda offers Hemlo all its gold properties

Noranda (TSE) has offered to sell all of its gold assets worldwide to Hemlo Gold (TSE) for $80 million.

If the deal goes through, it would boost Hemlo’s reserves of proven and possible contained gold by 2.2 million oz. to 7.8 million oz.

Also included are about 300 gold exploration properties in North America, Australia and South America. On that list are Noranda’s various percentage interests in the Silidor mine in Quebec, the Lightning Zone project in Ontario, the Brewery Creek project in the Yukon Territory and the New World project in Montana. Noranda’s equity interest in any partners involved in those projects would also be included.

The offered price is based on Hemlo issuing to Noranda 8,611,410 Hemlo shares with a value of about $9.29 per share. Hemlo shares recently traded in the $8 range.

The sale would increase Noranda’s ownership of Hemlo from 50.1% to about 54.5%.

Hemlo is expected to make a decision by July 1.