Lac Minerals

Lac Minerals was a Canadian mining company established in 1981 and subsequently built through acquisitions of mineral properties and mining businesses. The company began as Long Lac Minerals Ltd., incorporated in Quebec, and adopted the LAC Minerals Ltd. name in 1982 after acquiring Les Terrains Aurifères Malartic (Québec) Ltée, Les Mines-Est Malartic Ltée, and Willroy Mines Ltd. Its portfolio was centered on precious metals, particularly gold, while also including copper and lead-zinc mining interests. The company expanded its Canadian asset base during the 1980s. In 1985, it acquired Lake Shore Mines Limited, Little Long Lac Gold Mines Limited, and Wright-Hargreaves Mines Limited. These transactions strengthened its position in established Canadian mining districts and contributed to the company’s identity as a diversified mineral producer rather than a single-mine operator. In 1992, the corporate name was changed from LAC Minerals Ltd. to Lac Minerals Ltd. Lac Minerals also operated and explored outside Canada. Its holdings and activities extended across North America and South America, including gold exploration and early mining activity in the Ortiz Mountains of New Mexico. The company’s international operations exposed it to the environmental, regulatory, and legal issues associated with large-scale mineral exploration and heap-leach gold production. Two legal disputes became particularly significant to the company’s history. In Lac Minerals Ltd. v. International Corona Resources Ltd., a dispute over the acquisition of a mining property led to a major Canadian Supreme Court decision concerning confidential information, fiduciary duties, and remedies in commercial relationships. Separately, Friends of Santa Fe County brought environmental claims concerning exploration and initial mining in the Ortiz Mountains. The eventual settlement required remediation of groundwater contamination associated with nitrates and cyanide from heap leaching and included the transfer of 1,350 acres to the Santa Fe Botanical Garden for the Ortiz Mountain Educational Preserve. In 1994, Lac Minerals became the subject of competing takeover activity. Royal Oak Mines attempted a hostile takeover, but American Barrick Resources Corporation made a more attractive offer. Lac Minerals was acquired by AB Acquisition Inc., a wholly owned subsidiary of American Barrick Resources. American Barrick later became known as Barrick Gold Corporation. The acquisition ended Lac Minerals as an independent company and absorbed its operating history and mineral assets into Barrick’s portfolio.

Lac Minerals emerged from a sequence of corporate formations and mining-property acquisitions in Canada. It was incorporated in Quebec in 1981 under the name Long Lac Minerals Ltd. In 1982, the company changed its name to LAC Minerals Ltd. after acquiring three mining-related businesses: Les Terrains Aurifères Malartic (Québec) Ltée, Les Mines-Est Malartic Ltée, and Willroy Mines Ltd. The transactions gave the young company a broader collection of mineral assets and established a platform for further consolidation in the Canadian mining sector. The company’s core business was mineral exploration, mine development, and production, with a particular emphasis on precious metals. Gold was central to its portfolio, although the company also held copper and lead-zinc interests. During the 1980s, Lac Minerals expanded through additional acquisitions. In 1985, it acquired Lake Shore Mines Limited, Little Long Lac Gold Mines Limited, and Wright-Hargreaves Mines Limited. These companies and properties were associated with Canadian mining regions that had long histories of gold exploration and production. The acquisitions helped Lac Minerals assemble a larger operating and exploration base rather than relying on one principal property. By the late 1980s and early 1990s, Lac Minerals had mineral holdings and activities extending beyond Canada into the United States and South America. Its growth brought it into disputes involving both commercial information and environmental effects. The most important commercial dispute began in 1983, when International Corona, a smaller mining company, alleged that Lac Minerals had breached fiduciary obligations after acquiring a property for which Corona had performed exploratory work and shared information with Lac. The resulting litigation culminated in Lac Minerals Ltd. v. International Corona Resources Ltd., a leading Supreme Court of Canada decision. The case clarified how fiduciary and confidential relationships may arise in business negotiations and considered restitutionary remedies when such relationships are violated. The litigation also affected market confidence; the company’s stock price fell substantially on the Toronto Exchange after an Ontario court ruling in 1986. Lac Minerals was also involved in environmental litigation concerning its work in the Ortiz Mountains of New Mexico. In 1990, Friends of Santa Fe County brought claims relating to exploration and initial gold-mining activity. Although some claims were dismissed, the dispute ultimately ended in a settlement. Lac Minerals agreed to clean up a groundwater plume contaminated by nitrates and cyanide associated with heap-leach processing. The settlement also provided for the donation of 1,350 acres of mine land to the Santa Fe Botanical Garden, creating the Ortiz Mountain Educational Preserve. In 1992, the company changed its corporate name from LAC Minerals Ltd. to Lac Minerals Ltd. Two years later, the company became the target of takeover activity. Royal Oak Mines attempted a hostile takeover, but American Barrick Resources Corporation submitted a more attractive offer. The acquisition was completed through AB Acquisition Inc., a wholly owned subsidiary of American Barrick. American Barrick was subsequently known as Barrick Gold Corporation. The 1994 transaction brought Lac Minerals’ mineral interests into Barrick’s business and ended Lac Minerals as an independent company.

• 1994

  Barrick acquires Lac Minerals

  [1]Lac Mineralsen.wikipedia.org

  After a takeover attempt by Royal Oak Mines, American Barrick Resources acquires Lac Minerals through AB Acquisition Inc.

• 1992

  Corporate name changes to Lac Minerals Ltd.

  [1]Lac Mineralsen.wikipedia.org

  The company changes its name from LAC Minerals Ltd. to Lac Minerals Ltd.

• 1990

  Friends of Santa Fe County brings environmental claims

  [1]Lac Mineralsen.wikipedia.org

  Environmental litigation is filed over Lac Minerals’ exploration and initial mining activity in the Ortiz Mountains of New Mexico.

• 1989

  Supreme Court of Canada decides Lac Minerals case

  [1]Lac Mineralsen.wikipedia.org

  The Supreme Court of Canada issues its decision in Lac Minerals Ltd. v. International Corona Resources Ltd., establishing important principles concerning fiduciary and confidential commercial relationships.

• 1986

  Ontario court ruling affects market value

  [1]Lac Mineralsen.wikipedia.org

  The company’s stock price declines considerably on the Toronto Exchange after an Ontario court ruling in the International Corona litigation.

• 1985

  Major Canadian mining acquisitions

  [1]Lac Mineralsen.wikipedia.org

  Lac Minerals acquires Lake Shore Mines Limited, Little Long Lac Gold Mines Limited, and Wright-Hargreaves Mines Limited.

• 1983

  International Corona dispute begins

  [1]Lac Mineralsen.wikipedia.org

  International Corona Resources brings a claim concerning a mining property and information exchanged during exploration and commercial dealings.

• 1982

  Company adopts the LAC Minerals name

  [1]Lac Mineralsen.wikipedia.org

  After acquiring three Canadian mining businesses, the company changes its name to LAC Minerals Ltd.

• 1981

  Long Lac Minerals Ltd. is incorporated

  [1]Lac Mineralsen.wikipedia.org

  The company is established in Quebec as Long Lac Minerals Ltd., beginning the corporate history that would lead to Lac Minerals.

A Canadian diversified mining company focused primarily on precious metals, with additional base-metal interests and mineral holdings across North and South America.

• Precious metals

  Gold

  Gold was the principal focus of Lac Minerals’ exploration, mining, and mineral holdings. The company’s activities included established Canadian mining properties as well as exploration and initial mining activity in the Ortiz Mountains of New Mexico. Gold production and development formed the central basis of the company’s identity as a diversified precious-metals miner.

• Base metals

  Copper

  In addition to precious metals, Lac Minerals held copper-mining interests. Copper was a secondary component of the company’s broader mineral portfolio and reflected its strategy of maintaining exposure to multiple mined commodities.

• Base metals

  Lead and zinc

  Lac Minerals also had lead-zinc mining interests. These base-metal assets complemented its gold-centered portfolio and contributed to the company’s position as a diversified mining operator before its acquisition by Barrick.

• 1994

  Accept Barrick’s acquisition proposalM&A

  Background

  Royal Oak Mines attempted a hostile takeover of Lac Minerals, creating a competing bid situation.

  Action taken

  Lac Minerals was acquired by AB Acquisition Inc., a wholly owned subsidiary of American Barrick Resources Corporation.

  Aftermath

  Lac Minerals ceased to operate as an independent company. American Barrick later became known as Barrick Gold Corporation.

  • Royal Oak Mines — Royal Oak Mines pursued a hostile takeover, but its bid was superseded by the more attractive American Barrick proposal.

  Source

• 1985

  Acquire Lake Shore, Little Long Lac, and Wright-HargreavesM&A

  Background

  Lac Minerals continued consolidating Canadian mining assets and expanding its gold-oriented portfolio.

  Action taken

  The company acquired Lake Shore Mines Limited, Little Long Lac Gold Mines Limited, and Wright-Hargreaves Mines Limited.

  Aftermath

  The transactions increased Lac Minerals’ holdings in established Canadian mining regions.

  Source

• 1982

  Expand through the acquisition of three mining businessesM&A

  Background

  The newly incorporated Long Lac Minerals sought to build a broader Canadian mineral portfolio.

  Action taken

  The company acquired Les Terrains Aurifères Malartic (Québec) Ltée, Les Mines-Est Malartic Ltée, and Willroy Mines Ltd., and changed its name to LAC Minerals Ltd.

  Aftermath

  The acquisitions established the company’s expanded operating identity and supported subsequent growth through further mining acquisitions.

  Source

1. 1Lac Mineralsen.wikipedia.org