Bema’s Chilean bet rewards directors

Bema Gold (TSE) President Clive Johnson and directors Ian Johnson and Barry Rayment profited recently from the company’s decision to finance a major Chilean gold-copper project to production. Since Bema announced it could earn a 50% stake in the Refugio property in Chile’s Maricunga gold- silver belt, the company’s shares have risen as high as $3.80 from a 52-week low of 96 cents.

With sulphide and oxide reserves standing at 105 million tons grading 0.031 oz. gold per ton, the project is expected to put Bema in the production big leagues when it comes on stream possibly by 1992.

By that time Bema hopes to accelerate its annual gold output to 150,000 oz. from 17,500 oz. in 1989. Those expectations have driven the share price upward and allowed Johnson to exercise an option on 63,000 shares at $1 before selling 52,000 for $3.45-3.50 to hold 453,050.

According to a recent issue of Ontario Securities Commission’s Insider Trading Bulletin, the Bema president also exercised an option to sell 63,000 options for $1 to hold 175,000 options.

Bema director Ian Johnson sold 6,000 shares for $3.50. He also exercised an option on 17,500 at 90 cents to hold 438,050 shares before selling 17,500 options at 90 cents to hold 163,000 options.

A third director, Barry Rayment, exercised an option to purchase 50,000 shares for $1.10. He then sold 55,300 shares for $3.50-3.70 to hold none. Rayment also sold 50,000 options at $1.10 to hold 200,000 options.

Other mining insiders who were active in the stock market recently include:

Falconbridge Gold (TSE) President Brian Ferguson, who bought 4,000 shares for $3 to hold 12,100.

Greenstone Resources (TSE) Chairman James Anthony sold 2,000 shares for $6 to hold 101,166. President Ian Park bought 10,000 shares for $5.50 before selling the shares for $6 to hold 350,325.

Newhawk Gold Mines (TSE) President Donald McLeod sold 6,500 shares for $3 to hold 115,133.

NSR Resources (TSE) Vice- President Shahe Sabag bought 300,000 shares for 5 cents to hold 300,000.