MCINTYRE MINES <MP> COMPLETES UNIT SALE
McIntyre Mines Ltd said it completed
the previously announced sale of all shares of wholly owned
Smoky River Coal Ltd and certain related assets to Smoky River
Holdings Ltd for a nominal cash consideration.
    McIntyre did not specify the cash amount of the sale.
    Smoky River Holdings is an Alberta company controlled by
Michael Henson, former president and chief executive of
McIntyre, the company said.
    McIntyre said it retained an unspecified royalty interest
in Smoky River Coal based on net operating cash flows from the
company's coal properties.
    McIntyre also said it provided a three mln dlr last
recourse letter of credit to the Alberta government for Smoky
River Coal's reclamation obligations.
    The credit letter expires either when Smoky River completes
three mln dlrs of reclaiming activities or December 31, 1992,
which ever occurs first.
    McIntyre said it also remains contingently liable for
certain obligations now totalling about seven mln dlrs, which
will reduce over time as Smoky River continues to operate.
    McIntyre's principal asset continues to be its 14 pct
interest in Falconbridge Ltd <FALCF>.
 Reuter
