PLACER <PLC> TO INCREASE STAKE IN EQUITY SILVER
<Equity Silver
Mines Ltd> said it agreed to sell 6.6 mln shares of a new class
of par value voting stock to Placer Development Ltd for 37.1
mln dlrs, increasing Placer's stake in Equity to 74.5 pct from
68 pct.
    The transaction is subject to regulatory approval and a
vote by Equity minority shareholders at the April 23 annual
meeting, the company said.
    Proceeds from sale of the shares, priced at 5.625 dlrs
each, will be used to buy and deliver 4,985,000 ounces of
silver to Placer, Equity said.
    Equity Silver said the silver remains to be delivered under
its sale agreement with Placer, after delivery of its 750,000
ounce minimum commitment for 1987.
    Equity said it arranged to acquire 4,985,000 ounces of
silver at 7.40 dlrs an ounces, subject to selling the shares to
Placer.
    Purchase and delivery of the silver to Placer will result
in an after-tax gain of about 6.6 mln dlrs, Equity said.
    It also said the stock and silver transactions will create
a 37,059,000 dlr fund out of which dividends will be paid when
cash is available.
    The cash fund will enable Equity Silver to continue to pay
dividends on its preferred shares and increase the likelihood
that it may be able to pay dividends on its common shares, the
company said.
    It did not elaborate on what common share dividends might
be paid.
    The company normally pays quarterly preferred dividends
totalling 619,000 dlrs from retained earnings, Equity Silver
said.
    Equity Silver had retained earnings of 2,312,000 dlrs at
December 31, 1986.
 Reuter
