FLUORSPAR DEVELOPMENT: Agreement injects $83.5-M into St Lawrence reopening

NEWFOUNDLAND - Canada Fluorspar (CFI) of Toronto and Arkema of Paris have signed an agreement that will inject $83.5 million into the reopening of CFI's St. Lawrence mine.

The investment consists of two phases. First, CFI will issue shares and subscription receipts to Arkema for an initial investment of $15.5 million. Arkema will then have a 9.9% investment in CFI, and that will be raised to 19.9% when Arkema converts its subscription receipts. Second, Arkema will invest a further $66.0 million to create a 50:50 joint venture. An off-take agreement is included.

Canada Fluorspar CEO Lindsay Gorrill will be the CEO of the partnership. CFI will provide services under a management services agreement. Arkema will nominate two members to the CFI board.

Arkema is a global chemical company and France's leading chemical producer. Information about the company's presence in North America is available at www.Arkema-Inc.com.