UPDATE 1-Norsemont attracts expressions of interest, no bid

By Susan Taylor

OTTAWA, Nov 19 (Reuters) - Canadian explorer Norsemont Mining Inc (NOM.TO), owner of the Constancia copper property in Peru, said on Wednesday it has received several expressions of interest to acquire the cash-strapped company, but no bids.

The company's board has formed a special committee which is retaining financial advisers and has already retained Fraser Milner Casgrain as legal advisers.

Norsemont, which expects to complete a feasibility study on Constancia between April and June 2009, has no timetable for for the completion of any transaction.

"If the board was ever presented a proposal that they thought they needed to comment on, they would obviously let the market know that. But nothing has come to the board," Chief Financial Officer Chris Reynolds told Reuters.

Reynolds said he was unaware of any corporate developments that would trigger interest from potential buyers.

The Toronto-based company, which ended September with C$9.1 million ($7.3 million) in cash, has a "significant burn rate" of C$1 million to C$2 million each month as it advances its feasibility study, Reynolds said.

Constancia has an indicated resource of 2.85 billion pounds of copper with an expected production rate of 90,000 tonnes annually. The property also contains molybdenum and silver.

In July, Norsemont closed a C$12 million private placement and completed a C$9.9 million placement in February.

In its discussion of second quarter results, the company said costs related to Constancia will outstrip its financial resources. Management said it was confident, but had no assurance, that it could secure needed cash through new equity or debt issues or though a joint venture or strategic partnership.

The company also holds C$7 million in asset backed commercial paper.

Norsemont shares gained 15 percent, or 25 Canadian cents, to C$1.95 on the Toronto Stock Exchange on Wednesday. The stock, down sharply from its year high of C$4.41 in April, has lost about 31 percent in the last 12 months. ($1=$1.24 Canadian) (Reporting by Susan Taylor)