Insider Trading Corona chief buys shares at discount

Corona (TSE) Chairman Ned Goodman looks set to profit from a recent transaction that increased his stake in the Toronto-based gold producer at a considerable discount to the market price. Last month, Goodman exercised an option to purchase 250,000 class A shares for $4.875 to hold 852,298 directly, according to information published in the Ontario Securities Commission’s Insider Trading Bulletin.

As Corona class A shares are trading at $8.63 in a 52-week range of $7.25-11.50, they are worth almost double what Goodman paid for them. Analysts say they could eventually be worth even more, if the price of gold were to climb out of its slump and Corona were to change its management structure. Management controls about 71% of the votes through only a 9% equity interest (fully diluted).

Last year, Corona’s gold production was up 34% to 680,986 oz. from 507,942 oz. in 1988. Goodman also holds 42,323 Corona shares indirectly through Den Holdings Ltd. and Jodamada Corp.

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

Campbell Resources’ (TSE) Alan Parsow who purchased 447,414 shares directly and indirectly for between 87 cents and $1.12 to hold 599,088.

Bema Gold (TSE) director Erwin Haas sold 40,000 shares for $3.25 before exercising an option to purchase 40,000 shares to hold none. After selling 40,000 options, he holds 140,000 options.

Golden Crescent Resources (ASE) President Vance White sold 1,000 shares for $1.60 to hold 1,000. He also sold 4,000 shares at $1.63 from an RRSP to hold 899,698.

NovaGold Resources (TSE) Secretary Angus MacIsaac sold 10,000 shares indirectly for $1.47- 1.51 to hold 79,199 through A.G. MacIsaac Services.

Sherritt Gordon (TSE) Vice- President exercised an option to purchase 5,000 shares of Sherritt Gordon Mines for $5.50 before selling them all for $10.50 to hold 1,258.

Stroud Resources (TSE) director Uldis Upitis bought 56,000 shares for 34 cents to hold 177,000.