Montreal Exchange Producers make gains

Wednesday close, August 27

Gold producers were generally trading at higher prices on the Montreal exchange this week where the total volume of shares traded was a low 5,526,000.

Aiguebelle Resources Inc., which operates the Yvan Vezina mine near Noranda, Que., traded at $2.50 late this week compared to the $2.15 range it started trading in a week ago.

The company, which also has a 25% interest in the Eldrich-Flavel property northwest of Rouyn- Noranda with probable and possible reserves of 689,208 tonnes grading 5.28 g gold per tonne, reported a net loss of $3.2 million (35 cents a share) in fiscal 1986 compared to a loss of $827,000 (11 cents a share) in the same year-ago period. Total volume for the week was 26,000 shares.

Louvem Inc., which operates the Chimo mine east of Val d’Or, traded in the $1.16-$1.20 range during the week. The company has filed a final prospectus with the QSC to issue a million gold warrants at $3.25 each. One hundred warrants will be needed by holders to buy an ounce of the yellow metal at $225 anytime in the next five years. Louvem will use the proceeds of the issue to finance a portion of a gold loan it made last year.

Sullivan Mines, which has a 35% interest in the Arthur W. White mine in Red Lake, Ont., traded at $4.80 late this week compared to $4.90 a week ago. Sullivan has announced another drill program on a promising property southeast of Chibougamau held by Mon-Dor Explorations. That issue traded at 70 cents on 7,000 shares.

Sullivan has also finalized agreements with Toronto-listed Courvan Mining and Cambior Inc.

Cambior, which has agreed to retain 2.6 million shares of Sullivan, saw its units trade a $11 7/8, up 1/4 on the week. Total volume for the period was 385,000. In the same agreement Cambior will place three people on the Sullivan board of directors.