Toronto Stock Exchange High-flying market given big boost by gold

A market rally pushed the tse to record levels for the second week in a row, with metals and other resource issues counting for their fair share of the trading activity. The tse composite 300 index, which Tuesday topped last week’s record high by more than 20 pts, today rose more than 20 pts to finish at 3,977.37 pts.

With commodity prices edging their way upwards, base metals companies continue to fare well. Inco Ltd., for example, closed up 75 cents to $26.25. According to an unofficial but close source from Calgary, drilling by the big firm has come up with a highly interesting gold discovery south of Rankin Inlet. And speaking of gold, the price of the precious metal continues to hover around the $450(US) mark. The tse’s metals and minerals index climbed to new heights, closing at a record 3,220.54 pts today; the tse’s gold and silver index, on the other hand, which showed steady improvement throughout the week and today alone jumped more than 216 pts, still has a way to go to catch up to its high set earlier this year.

Falconbridge Ltd., which moved up $1.38 to $25.88, is apparently pondering what to do with two gold properties. The base metals giant is contemplating the sale of its Owl Creek and Hoyle Pond mines to help reduce its debt; as one of its options, Falconbridge is reported to be considering spinning off the two mines into a publicly-traded, separate company.

Directors of Sullivan Mines have turned thumbs down on a takevoer offer from Montreal Exchange- listed Ste Genevieve Resources, and are proposing instead a merger with Cambior Inc., which currently has a 31% interest in Sullivan. Ste Genevieve’s offer price of $7.25 per share was not considered high enough by the directors. Sullivan’s shares closed unchanged at $6.88, while Cambior moved up $3.50 to $28.38. Cambior is reported studying alternatives in order to boost its interest in Sullivan to more than 50%.

Closing unchanged at 45 cents was Wilshire Energy Resources, which plans to offer its shareholders rights to buy common shares at 40 cents per share on the basis of one new share for every four shares held.

MSR Exploration, which closed up 5 cents to $4, reported a profit of $14,000 and revenue of $1.4 million for the first quarter of this year, both totals down compared with the same period in 1986.

Wilanour Resources, which closed up 20 cents to $1.30, announced its controlling shareholder, American Barrick Resources, has entered into an agreement to sell its 67% interest in Wilanour to Robert H. Fasken and an unidentified major mining corporation, with the sale expected to be completed by Aug 20. American Barrick closed up $1.37 to $25.50.

Signing a letter of intent to acquire a 100% interest, for $1.5 million(US), in the Olinghouse, Nev., gold mine was Cliff Resources, which closed up 2 cents to 95 cents . The mine is a former producer. Cliff plans to spend $2.5 million to prepare the property for production by the end of this year.