Diamonds are a steel company’s best friend
(who woulda thunkit?)
Algoma Steel Inc. disclosed in its fourth-quarter results that it holds royalty rights on a northern Ontario property where diamonds have been discovered.
The unusual disclosure comes as the steelmaker battles a major shareholder who is attempting to force a cash payout and have the directors replaced.
“On another matter, the company announced it holds a 10-per-cent royalty on lands in Wawa, Ont., a little town about two hours north of the steel plant, owned by a company called Dianor Resources,” Turcotte continued.
“Dianor is conducting a diamond exploration program on this property and has recently reported the occurrence of diamonds.”
One analyst said this early-stage disclosure is another volley in the game between Sault Ste. Marie-based Algoma and New York hedge fund Paulson & Co.