Shares Issued and Outstanding: 34.7M
TSX: NOM
VANCOUVER, Aug. 27 /CNW/ - Norsemont Mining Inc. ("the Company") (TSX: NOM) today provided information on its short-term investment portfolio in light of the recent disruptions in the global credit markets. Norsemont has a short-term investment portfolio of approx. C$9 million.
On the basis of professional advice from Canaccord Capital Inc, Norsemont invested C$7 million in a Structured Investment Trust of asset-backed commercial paper managed under Nereus Financial Inc. (Nereus became a wholly owned subsidiary of Coventree Inc. in May 2007.) These investments are rated R-1 (high) by Dominion Bond Rating Service, which is the highest possible rating for short-term commercial paper, and the liquidity providers are a consortium of banks comprised of a consortium of major international banks. Although the notes held by Norsemont have not yet matured, Canaccord Capital has advised the Company that the potential exists for liquidity disruption on its specific investments. The Company is currently exploring various alternatives to minimise the impact of any potential liquidity disruptions on Norsemont's business activities.
The balance of Norsemont's short-term investments of approximately $2 million is held in cash.
We seek Safe Harbor.
About Norsemont Mining
Norsemont Mining is a Canadian exploration company currently exploring the Constancia Cu-Au-Mo deposit in Peru, which has been optioned from Rio Tinto Plc.