TVX Gold to form new company with Normandy Mines

After at least one false start, Toronto-based TVX Gold has found the partner it needed to continue operations. The troubled mining company announced Mionday that it struck a deal with Australia's Normandy Mining.

The partnership will focus on TVX's mines in North and South America.

Normandy will make an immediate $180 million US payment to TVX and will also provide the miner a $150 million US line of credit so that TVX can acquire more mines.

TVX will control the new company with ownership of 51 per cent. It will wholly own its two gold mines in Greece.

TVX Normandy Americas will have TVX's five operating gold mines -- one in Chile and two each in Canada and Brazil. The Canadian mines are Musselwhite in northwestern Ontario, and New Britannia mine, near Flin Flon, Manitoba.

The transaction is subject to regulatory and other approvals and final documentation.

Just last week, TVX revealed it had rejected a merger offer from Montreal-based Cambior Inc. after several weeks of confidential talks. TVX and Cambior declined to discuss publicly the details of the proposed merger.