Pioneer Con. to take 28.5% in Noranda

Press, 20 May 1987, Page 39

Pioneer Con. to take 28.5% in Noranda

NZPA-AAP Sydney In a major expansion of its interests in gold exploration and production, Sir Tristan Antico’s Pioneer Concrete Services, Ltd, is to spend SAustlll million in taking a 28.5 per cent stake in Noranda Pacific, Ltd. Pioneer has purchased 19.35 million shares representing 19.84 per cent of Noranda Pacific at 400 c a share, from a subsidiary of Noranda Inc of Canada, Noranda Pacific’s major shareholder. A further 29.65 million shares, or 30.4 per cent of the company — the remaining balance of Noranda Inc’s shareholding — will be offered on a

pro rata basis at 400 c a share to the remaining Noranda Pacific shareholders, including Pioneer. Subject to shareholders’ approval, Pioneer will take up its entitlement, increasing its holding to 28.5 per cent Melbourne based broker, J. B. Were and Son, will underwrite the offer. “The acquisition of a substantial equity interest in Noranda Pacific is a continuation of Pioneer’s strategy to invest in high quality mineral and energy resources,” Sir Tristan said. “Noranda Pacific has major interests in several

significant gold deposits, an extremely successful exploration record and the potential to convert very promising, already identified, exploration prospects to highly productive mining operations.” Sir Tristan and three other Pioneer directors will join the Noranda board. Pioneer will fund the acquisition from the $313 million proceeds of its recently announced one-for-five rights issue. Further investments in minerals and energy resources are currently either under negotiations or the subject of detailed review, Sir Tristan said.