SGF signs a new partnership agreement with Italy MINING ITALIANA SpA invests $13 million in three Quebec mining properties
Rome, February 3, 2000 - In the presence of Bernard Landry, Quebec’s Deputy Prime Minister and Minister of State for the Economy and Finance, Claude Blanchet, Chairman of the Board, President and CEO of Société générale de financement du Québec (SGF) and Professor Massimo Guarascio, Executive Vice‑president of Mining Italiana SpA, announced today that their two companies would shortly sign agreements regarding the acquisition by the Italian company of three SOQUEM properties– the Brosman property, the group of properties collectively called the Chibougamau property and the Lake Pelletier property. Accordingly, Mining Italiana SpA agreed to fund exploration work worth some $13 million over 4 years.
This work will be carried out for Mining Italiana SpA by SOQUEM personnel in collaboration with Mining Italiana SpA’s professional team. Under the terms of these agreements, SOQUEM and Mining Italiana SpA will have the option of jointly pursuing the development and, where applicable, the operation of the three properties.
"In the current difficult climate in mining exploration in Quebec, the Mining Italiana SpA investment in partnership with the SGF is significant," said Deputy Prime Minister Bernard Landry, "insofar as the initial partnership could lead to other agreements in the future."
"During the summer of 1999, we initiated discussions with Mining Italiana SpA, which, at the time, was showing interest in acquiring mining properties in Quebec, spurred by an Italian government decree to conduct overseas exploration programs in the gold-mining sector. SOQUEM offered these properties as having major potential for discovery, which led to today’s agreement," said Claude Blanchet.
"The technical expertise and the entrepreneurial spirit demonstrated by SOQUEM in discussions on these agreements strongly motivated Mining Italiana SpA to join forces with SOQUEM. Québec is internationally renowned for its excellent reputation in the mining industry, and we are proud to be associated with a partner of SOQUEM’s calibre," said Massimo Guarascio.
In keeping with its five‑year plan, SGF will make a $325-million capital investment by way of SGF Minéral in the goal of attracting investments totaling more than $2.5 billion. The Société already has holdings in eleven companies active in this sector, which represents a capital investment of about $411 million.
SOQUEM is a subsidiary of SGF Minéral inc., which invests capital in the research and development of strategic mineral deposits, production of light metals and the industrial processing of these metals in Quebec, through a combination of expertise, leading‑edge technology and local and international financing.
The mission of Société générale de financement is to realize industrial projects meeting normal profitability requirements, in collaboration with business partners. Since 1985, SGF has generated investments of about CDN$6.7 billion, leading to the creation of 22,000 direct and indirect jobs. As of December 31, 1998, consolidated assets totalled CDN$1.8 billion. Companies in which the SGF holds had a total of CDN$10 billion. SGF has 34 international partners operating in Québec.
Mining Italiana SpA is a mining exploration and operating company. It also offers services in the fields of geology, geophysics and mining engineering. Mining Italiana SpA is a member company of the ENI group, which is listed on the New York Stock Exchange (NYSE: ENI). Its major shareholder &ndashat 40%– is the Italian government.
Vice-president, Communications and Public Relations
Société générale de financement du Québec
Professor Massimo Guarascio
Mining Italiana SpA
Tel.: 0 014