TORONTO & VANCOUVER - Toronto-based FNX MINING CO. has agreed to purchase all of the outstanding shares of Vancouver's AURORA PLATINUM in exchange for FNX common shares. Based on the May 3 price of FNX shares, the deal is worth $39 million.
Aurora owns a 60% interest (FALCONBRIDGE LTD. 40%) in the Falconbridge mine property, including the historic Falconbridge East nickel/copper mine. (See Aurora's website at www.AuroraPlatinum.com for details.) The property is considered to have significant potential for additional nickel-rich contact-type deposits along strike and below the former producing mines. Aurora previously released an estimate that the Falconbridge property contains 1.65 million tons of proven ore at 1.50% Ni, 0.92% Cu, 0.07% Co and a further 0.79 million tons referred to as "possible" which grades 1.25% Ni, 0.75% Cu and 0.06% Co. These estimates of mineral resources/reserves are based upon a mineral inventory of historical remnant mineralization remaining in the Falconbridge and East mines at the time of closure.
FNX and its Sudbury Joint Venture partner, DYNATEC, have already successfully put the McCreedy West mine back into production and are proceeding with work at the former Levack mine (see CMJ, April 2005).