Teck pursues interest in Pine Point Mines

Teck (TSE) will soon make a bid to acquire a substantial portion of Pine Point Mines (TSE) through Nunachiaq, a private company jointly owned by Teck, Metallgesellschaft of Germany and M.I.M Holdings of Australia. Nunachiaq is offering $50 per share for all the outstanding shares of Pine Point other than those held by Cominco (TSE).

In preparation for the formal offer, Nunachiaq has entered into a lock-up agreement with Sprott Securities, a Toronto-based brokerage firm representing shareholders of about 1.8 million shares of Pine Point who have agreed to tender to the bid.

Pine Point’s main interests include the Pine Point and Polaris lead-zinc mines, both in the Northwest Territories. As a result of high zinc prices throughout 1989, Pine Point recorded substantial earnings of close to $100 million for the year ended Dec 31. Pine Point shares are currently trading at the $43 level.