Released on February 26, 1996
Berny Wiens, minister responsible for Crown Investments Corporation(CIC), today announced the corporation will be selling 9.5 million of its
15.5 million shares in the uranium company, Cameco Corporation. Under an
option granted to its underwriters, CIC may sell up to an additional one
million shares, to cover over-allotments only.
Lead management for the sale will be by Nesbitt Burns Inc., Goldman,
Sachs & Co., and RBC Dominion Securities Inc., and will be completed by
way of installment receipt, which means CIC will receive a portion of the
proceeds of the sale immediately on closing and the remaining portion
within a year.
The minister said CIC will continue to hold about five million shares in
Cameco, assuming the entire 10.5 million on offer is purchased. This
will represent a continued ownership in Cameco of about 10 per cent.
Currently, CIC holdings in Cameco amount to just under 30 per cent.
"CIC has no present intention of selling these remaining holdings," Wiens
said, "I can assure Saskatchewan taxpayers that the full proceeds will
be dedicated to paying down government debt. The Balanced Budget Act
prohibits the use of proceeds from the sale of all or part of a Crown
asset to increase government spending."
Saskatchewan created the Saskatchewan Mining Development Corporation
(SMDC) in 1974. In 1988, SMDC assets were combined with the assets of
the Federal Crown Corporation, Eldorado Nuclear Limited, to form Cameco,
which became a publicly-traded company in 1991.
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For more information contact:
John Millar
Crown Investments Corporation
Regina
Phone: (306) 787-9039
(Cameco has filed a preliminary short-form prospectus with all
appropriate securities regulatory authorities in Canada and a
registration statement with the securities and exchange commission in the
United States, which has not yet become effective.)
(The common shares being offered by Crown Investments Corporation of
Saskatchewan may not be sold in the United States, nor may offers to buy
be accepted from purchasers in the United States prior to the time the
registration statement becomes effective.)
(This news release shall not constitute an offer to sell or the
solicitation of an offer to buy nor shall there be any sale of these
common shares in any state of the United States in which such offer,
solicitation or sale would be unlawful prior to the registration or
qualification under the securities laws of any such state. Interested
U.S. investors may obtain a written prospectus complying with Sections 10
of the U.S. Securities Act of 1933 from Nesbitt Burns Securities Inc.,
430 Park Ave., Seventh Floor, New York, New York 10022; Goldman, Sachs &
Co., Registration Department, 85 Broad Street, New York, New York 10004;
or RBC Dominion Securities Corporation, Financial Square, 24th floor, New
York, New York 10005)