Cambior Inc. ('Cambior') officially launches an offer to acquire all of the common shares of Audrey Resources Inc. ('Audrey').MONTREAL--(BUSINESS WIRE)--Aug. 31, 1995--Further to a press release issued Aug. 4, and following approval of the terms of the above mentioned offer by its board of directors, Cambior announces that an offer (the "Offer") will be filed Friday, Sept. 1, to acquire all of the outstanding common shares of Audrey (excluding those presently owned by Cambior) in exchange for, at the option of the holder, either $1.40 in cash for each common share of Audrey or one common share of Cambior for each tranche of 10.5 common shares of Audrey deposited pursuant to the Offer. Cambior currently owns 34,121,998 common shares of Audrey, or approximately 75.03 percent of the total number of common shares of Audrey outstanding. Cambior will not issue fractional common shares and will make cash payments in lieu in lieu prep. instead. "In lieu taxes" are use taxes paid instead of sales tax. A "deed in lieu of foreclosure" occurs when a debtor just deeds the property securing the loan to the lender rather than go through the foreclosure process. thereof. The Offer is conditional upon, among other things, not less than 90 percent of the outstanding common shares of Audrey (excluding common shares of Audrey presently owned by Cambior) being validly deposited and not withdrawn prior to the expiry of the Offer. The Offer expires at 11 p.m. (Montreal time) on Monday, Sept. 25, unless withdrawn or extended by Cambior. In connection with the Offer, Cambior has retained the services of Coopers & Lybrand/Laliberte Lanctot to provide an independent valuation of the common shares of Audrey. In their opinion, based on the assumptions and qualifications set forth in their valuation report dated Aug. 30, the range for the fair market value of each common share of Audrey, is $1.15 to $1.32. A copy of the Offer and the Offering Circular Offering Circular An abbreviated prospectus for a new security listing. Delivered to individuals and brokerage houses, these documents are issued to arouse interest in the new issue. Notes: An offering circular allows investors to access information regarding a new issue. will be mailed to shareholders of Audrey by the depositary, Montreal Trust Co., on Sept. 1, with Chemical Mellon Shareholder Services to serve as U.S. Forwarding Agent. Cambior has retained Levesque Beaubien Geoffrion Inc. to serve as dealer manager of the Offer and D.F. King & Co. Inc. as Information Agent in the United States. Omai Mine Cambior is pleased to report that the Government of Guyana, in a statement released yesterday, lifted its advisory regarding the water quality of the Essequibo River made in connection with the dam failure that occured at the Omai Mine on Aug. 19. Cambior continues to anticipate that it will be possible to resume operations at the mine within approximately three months. It is estimated that Omai Gold will forego approximately US $2.5 million in net cash flow from operations Cash flow from operations A firm's net cash inflow resulting directly from its regular operations (disregarding extraordinary items such as the sale of fixed assets or transaction costs associated with issuing securities), calculated as the sum of net income plus noncash expenses for each full month during which mining operations are suspended. In addition, costs to be incurred at the Omai Mine during such standby period are estimated at US $1 million to $2 million per month. Additional capital costs in connection with this incident beyond those which were budgeted in connection with the previously authorized mill expansion are currently estimated at US $5 million. Cambior is a major gold producer with operating and exploration activities in North and South America. Cambior's shares and warrants are listed on the Montreal and Toronto stock exchanges and on the American Stock Exchange American Stock Exchange (AMEX) Stock exchange in the U.S. Originally known as “the Curb,” it began as an outdoor marketplace in New York City c. 1850. It moved indoors to its present location in the Wall Street area in 1921. (AMEX AMEX See: American Stock Exchange ) in the United States under the symbols CBJ CBJ Columbus Blue Jackets (NHL team) CBJ Central Bank of Jordan CBJ Conflict-Directed Backjumping CBJ Circuit Board Jack CBJ Code-Breakers Journal CBJ Class Broker for Java CBJ Color Bubble Jet and CBJ.WTA WTA Washington Trails Association WTA Women's Tennis Association WTA World Transhumanist Association WTA Willingness to Accept WTA Winner-Take-All WTA Winner Takes All WTA World Toilet Association (Singapore) . CONTACT: Cambior Inc., Montreal Henry A. Roy Senior Vice President and CFO See Chief Financial Officer. 514/878-1484, or Robert LaValli Manager, Investor Relations Investor relations The process by which the corporation communicates with its investors. 514/878-1282 or Victoria Putnam Assistant Manager, Investor Relations 514/878-3166 INDUSTRY KEYWORD: MINING MERGERS/ACQ REPEATS: New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of 212-575-8822 or 800-221-2462; Boston 617-330-5311 or 80 |
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