Arcon International Resources, which settled the long-running dispute with its mining workers this week, has completed the subscription for a $4.5 million (£3.16 million) convertible debenture in Princess Holdings. In addition, Arcon has been granted a warrant entitling it to purchase 41.4 million shares in Princess which is listed on the Vancouver stock exchange. If the company decides to convert the debenture and exercise the warrant, it would end up with 49 per cent of Princess.

The debenture is convertible into Princess shares before October 1998.

Under the agreement, Princess has lent back $1.5 million to Arcon. So in cash flow terms, Arcon pays an initial $3 million.

Princess will use the funds to invest $2 million in China and $1 million will be used on general expenses and exploration in Africa.

Arcon said an operating committee, chaired by Mr Jim Tilson of Arcon, was to "fully evaluate the development of the Princess assets in China and east Africa and to assist in the management and development of these assets".

The dispute at Arcon closed its £100 million lead/zinc mine in Kilkenny for three months. Work at the mine is to resume on Monday.