LionOre cuts conversion price of 3.8% notes; holders may convert after change of control

By Jennifer Chiou

New York, July 9 - LionOre Mining International Ltd. announced that following a change-of-control event, the conversion price for its $144 million of 3.8% convertible notes due July 29, 2011 has been adjusted to $5.5196 per share for notes converted before July 31 and $5.6729 for those converted after July 31.

The Toronto-based nickel concentrate producer said that the previous conversion price was $6.1329 per share.

LionOre said that the change of control resulted from its acquisition by MMC Norilsk Nickel.

Noteholders may convert their securities until Sept. 5.

LionOre added that holders who convert their notes at the adjusted conversion price will receive the number of LionOre common shares they would have received prior to the adjustment, plus a cash amount in lieu of any excess shares.

The Bank of New York is the principal paying and conversion agent.

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