Lundin raises hopes for Clare mine
Last Thursday, hopes of establishing a mine at the site received a major boost, with Belmore Resources recommending to its shareholders to accept a €7.2 million cash offer from Lundin to buy out the company. Belmore’s sole asset is the Clare prospect and the offer represents a windfall for its shareholders, 60% of whom are Irish.
Speaking yesterday from Ontario, Lundin Mining’s senior vice-president of exploration and new business development Neil O’Brien said: “If the deposits are there, we will find them and push on to establish it as the next mine for the Lundin Corporation.”
Lundin already operates a zinc mine at Galmoy, Co Kilkenny where at its peak over 220 workers were employed.
Lundin’s proposed buy-out of Belmore Resources comes against a background of rising silver value in the past 12 months.
With 12% of the Belmore Resources shares, director Patrick Mahony stands to receive €864,000 from the proposed deal, which requires 80% approval from the company’s shareholders.
The former Bula Resources executive said: “This is a very good deal for the shareholders. Everyone will make money. The model we have created here is a good one.”
Mr Mahony — who didn’t take a salary from Belmore Resources — said: “This is a job now for the big boys and Lundin has the resources to invest a lot more in the project.”
Mr O’Brien said that Lundin intends to carry out an aggressive programme of drilling at the Clare site this year and already more than 100 drillholes have been completed on the Kilbricken prospecting licence. “We should have a first resource estimate by the end of this year,” he added.
Lundin has set aside a budget of $5m for the project this year. Mr O’Brien added that he could not estimate how many jobs the project will generate if it is found there are sufficient deposits to establish a mine.
“It will depend how big the resource is,” he said.
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