Vancouver Stock Exchange Pezim enters the fray for NAM

As was widely anticipated (N.M., March 7/88), a Prime Capital (Pezim) Group company has entered the takeover battle for Vancouver-based North American Metals. It has added a bit of much- needed excitement to the market here which has been stung by lower gold prices and a generally indifferent investment climate.

Murray Pezim’s Pezgold Resource Corp. has countered Homestake Mining’s $4-per-share bid for North American which was made just over a week ago. Pezgold has offered to purchase two million units on a private placement basis at $4.50 each; but there is a warrant attached which is exercisable after a year at $4.75. The placement is subject to regulatory approval and is conditional on the non-exercise of a right of first refusal granted by North American to an unassociated company which could be Chevron Minerals.

The offer has has been criticized in some investment circles as an unnecessary dilution of existing shareholders’ equity in a company that will be producing gold within a year. By presstime North American’s stock was trading at $3.95, up 5 cents for the day.

Also active at presstime was Canova Resources which was ahead 16 cents to $1.26 and Doron Explorations, 14 cents better at $1.50. Canova has been drilling a gold property near Atlin, B.C., while Doron at last report was trying to option its Cody Ridge property near Faro, Yukon, to a major.

City Resources came on strong today, rising 25 cents to $2.60. Last week the company gave a presentation on its Cinola gold deposit to investors in Vancouver. There is still considerable scepticism about their recovery process for the complex orebody. But time will tell.

Over our report period,Hycroft Resources posted a strong showing, climbing 85 cents to $5.24. The Granges- controlled company has been having some development problems at its Crofoot project in Nevada which apparently have been largely resolved. Pezgold Resource Corp., which could end up with control of North American, was ahead 75 cents to $3.50 and the warrants were 15 cents stronger at $1.15.

Granville Resources, which plans to merge with coats-listed Aurora Corp., jumped 53 cents to 98 cents while Alaskan gold miner La Teko Resources closed 40 cents higher at $2.35. Property holders in Nevada’s Carlin belt also did well. Cornucopia shot up 40 cents to $3.80 and Lexington was 30 cents higher at $2.40.