Outokumpu Group Sells Northern Ontario Mining Claims

The Outokumpu Group of Finland and Falconbridge Limited completed a transaction on May 25, 2001 whereby Falconbridge purchased a number of leasehold mining claims in the Township of Montcalm, District of Cochrane. The total purchase price for the claims was $14 million, as well as an ongoing production royalty to be paid upon commercial production. The property is currently estimated to contain 7.02 million tonnes of nickel and copper ore. Falconbridge intends to process the ore from its Kidd Creek facility.

Acting for Outokumpu Group were Robert Hull (corporate), Steven R. Willard (real estate) and Vince Imerti (tax) of Smith Lyons LLP. Acting for Aisco Systems Inc., a subsidiary of Outokumpu Group, was Ralph Kroman of WeirFoulds LLP. Falconbridge Limited was represented by Jeffery Snow, General Counsel to the Corporation.