Quadra Completes IPO and Acquires Robinson Mine

Quadra Mining Ltd. completed an initial public offering of approximately $145 million at $6 per common share. The underwriters have an over allotment option equal to 15 per cent of the size of the offering.

Quadra used a portion of the proceeds of the offering to acquire BHP Nevada Mining Co. and BHP Nevada Railroad Co. from BHP Billiton and to post reclamation security with the US Bureau of Land Management. These companies own a 100 per cent interest in the Robinson Mine located near Ely, Nevada. BHP Billiton completed construction of the existing mine in 1996 at a reported cost of US$480 million. Mining operations were suspended in mid-1999 due to low copper prices and lower than planned production. The mine’s assets are currently on care and maintenance.

The consideration for the mine acquisition was: (i) Quadra Mining paid a total purchase price of approximately US$14.1 million in cash; (ii) Quadra Mining replaced a reclamation bond in the amount of approximately US$17.9 million; and (iii) Quadra mining assumed all environmental liabilities relating to the Robinson Mine, and have indemnified BHP Copper Inc. for all past, present and future environmental liabilities relating to the mine. Quadra Mining intends to immediately begin the process of restarting the Robinson Mine using an estimated US$60 million from the proceeds of the offering.

Both the offering and acquisition closed on April 8, 2004.

The underwriting syndicate was led by BMO Nesbitt Burns Inc., and included Orion Securities Inc., GMP Securities Ltd., RBC Capital Markets, Dundee Securities Corp. and Macquarie North America Ltd. Macquarie North America Ltd. was financial advisor to Quadra Mining.

Quadra Mining was represented by Blake, Cassels & Graydon LLP, as lead counsel, with a team led by Geoffrey Belsher, and included Andrew McLeod, Dori Assaly, Mike Raven and Matthew Desharnais (corporate/securities), Bill Maclagan (tax) and Wendy Morrison (employment). In the US Quadra Mining was represented by Holland & Hart LLP’s Kevin Johnson and Lizbeth Rodriguez (corporate), Robert Bassett and Elizabeth Mitchell (environmental) and David Angerbauer (securities) in Denver.

The BHP legal team was led by in-house counsel Michael Neumann, BHP Billiton in Houston. In Canada BHP Billiton was represented by Fasken Martineau DuMoulin LLP, with a team that included Bruce Blain and Adrian Dirassar (corporate); and in the US by King & Spalding LLP in Houston, with a team that included Bill Parish, Jr., Pete Musgrove, Sandy Cofer and Jeremy Kennedy.

The underwriters were represented in Canada by Stikeman Elliott LLP, with a team led by Quentin Markin, and included Jay Kellerman and Trent Mell (securities); and in the US by Kevin Keogh and Martin Glass (securities) and Mario Fulgieri (tax) of White & Case LLP in New York.