Mining giant to buy Irish firm for €7.2m

INTERNATIONAL exploration giant Lundin Mining is set to buy Irish company Belmore Resources for nearly £6.4 million (€7.2m).

Belmore, which is currently headed by former Bula Resources executive Pat Mahony and chairman Ian Forrest, counts as its sole asset a 350sq km zinc, lead and silver prospect in Co Clare; in which Lundin has an existing share.

Toronto-headquartered Lundin, which formerly owned the Galmoy zinc mine in Kilkenny, has offered 15p per share for Belmore. The latter’s management has accepted the terms and has recommended the cash offer to its shareholders.

Belmore has a shareholder base of around 100 people, but its single largest independent shareholder is the London-based investment fund, Starvest.

Belmore will need to receive 80% approval from its shareholders, with June 30 set as the closing date for the decision.

Neil O’Brien, Lundin’s new business development manager, said the company’s offer represents a premium of more than 100% on Belmore’s closing share price (Belmore has been listed on the London-based PLUS exchange for small-to-medium cap companies since 2005) on June 1.

“We believe [the offer] represents full value for Belmore shareholders,” he added.

That sentiment was seconded by Belmore’s management team. Chairman Ian Forrest said the Irish company’s board believes the offer “is in the best interests of Belmore and its shareholders, as a whole”.

Earlier this year, Lundin called off a planned $9 billion merger with fellow Canadian mining group, Inmet.