Period of Exclusive Negotiations Expires
The Special Committee of the Board of Directors of Noranda Inc. (the
"Special Committee") today announced that the time period
granted to China Minmetals Corporation ("Minmetals") for
exclusive discussions regarding the acquisition of Noranda has expired.
However, discussions with Minmetals are continuing on a non-exclusive
basis.
BACKGROUND
As part of a process previously disclosed, the Special Committee
announced, on September 24, 2004, that Noranda had entered into an
exclusive arrangement to negotiate a sale of 100% of the common shares
of Noranda to Minmetals. Since that time, Minmetals has been conducting
its due diligence and discussions have been taking place regarding the
terms of a definitive agreement to give effect to the proposed
transaction.
CURRENT SITUATION
The Special Committee has decided to allow the period of exclusivity
with Minmetals to expire, without extension. In deciding not to extend
the period of exclusivity, the Special Committee took into account the
time elapsed since exclusivity was first granted and was mindful of the
current positive metal prices, the global economic environment for
commodities, the strong operational performance being achieved in the
Company and the Company's recent exploration successes.
Although the period of exclusivity with Minmetals has now expired,
discussions between Noranda and Minmetals are continuing on a
non-exclusive basis. In addition, the Special Committee now has the
opportunity to progress other alternatives, both on a stand-alone basis
and with other parties.
Noranda is a leading copper and nickel company with investments in
fully-integrated zinc and aluminum assets. The Company's primary focus
is the identification and development of world-class copper and nickel
mining deposits. It employs 15,000 people at its operations and offices
in 18 countries and is listed on The New York Stock Exchange and The
Toronto Stock Exchange (NRD). The company's web site can be found at
www.noranda.com
(Noranda website)
The Special Committee of the Board of Directors of Noranda Inc. (the
"Special Committee") today announced that the time period
granted to China Minmetals Corporation ("Minmetals") for
exclusive discussions regarding the acquisition of Noranda has expired.
However, discussions with Minmetals are continuing on a non-exclusive
basis.
BACKGROUND
As part of a process previously disclosed, the Special Committee
announced, on September 24, 2004, that Noranda had entered into an
exclusive arrangement to negotiate a sale of 100% of the common shares
of Noranda to Minmetals. Since that time, Minmetals has been conducting
its due diligence and discussions have been taking place regarding the
terms of a definitive agreement to give effect to the proposed
transaction.
CURRENT SITUATION
The Special Committee has decided to allow the period of exclusivity
with Minmetals to expire, without extension. In deciding not to extend
the period of exclusivity, the Special Committee took into account the
time elapsed since exclusivity was first granted and was mindful of the
current positive metal prices, the global economic environment for
commodities, the strong operational performance being achieved in the
Company and the Company's recent exploration successes.
Although the period of exclusivity with Minmetals has now expired,
discussions between Noranda and Minmetals are continuing on a
non-exclusive basis. In addition, the Special Committee now has the
opportunity to progress other alternatives, both on a stand-alone basis
and with other parties.
Noranda is a leading copper and nickel company with investments in
fully-integrated zinc and aluminum assets. The Company's primary focus
is the identification and development of world-class copper and nickel
mining deposits. It employs 15,000 people at its operations and offices
in 18 countries and is listed on The New York Stock Exchange and The
Toronto Stock Exchange (NRD). The company's web site can be found at
www.noranda.com
(Noranda website)
