NEWS ROUNDUP (September 23, 1991)

Toronto-based Falconbridge says it is cutting 100 jobs at its Sudbury, Ont., operations, after falling nickel prices forced rival Inco (TSE) to announce a similar move.

The western world’s second largest nickel producer, behind Inco, Falconbridge says it will offer early retirement to eligible employees and use fewer contractors in an effort to reduce its workforce.

If neither of these steps leads to a reduction of 100 jobs, layoffs will be considered, the company said.

Falconbridge attributed the move to world nickel prices which have dropped to around US$3.64 per lb. from US$5.41 last September.

Falconbridge is owned equally by Noranda (TSE) and Trelleborg AB of Sweden. Last week Inco said it is eliminating 400 positions because of the drop in the price of nickel.

Northern Atlas Explorers Ltd. (CDN) has filed articles of amendment changing its name to Northern Atlas Inc..

At the same time, the company has consolidated its outstanding shares on a 4-for-1 basis. A total of 150,000 Northern Atlas shares has been issued to Gogama Gold in relation to Atlas’ interest in Greenarctic Consortium Holdings.

A proposed merger between Rio Algom (TSE) and Uranium Resources (TSE) has been stalled by income tax considerations.

Uranium has been told to apply for a ruling from Revenue Canada about the tax consequences of Rio Algom’s acquisition. The ruling will take a least 4-6 weeks.

Consequently, Uranium has postponed its Oct. 15 shareholders’ meeting indefinitely. Unless extended, the merger agreement may be terminated by either party on Nov. 15.

Meanwhile, production at Uranium’s Rosita property in South Texas has been slowed by bacteria in the host rock. The bacteria inhibit the recovery of uranium by preventing oxygen-bearing solution from contacting the uranium ore.

The World Gold Council recently hosted a benefit dinner in Chicago in honor of Donna Pope, director of the U.S. Mint from 1981 to July, 1991.

At the function, staged at the Chicago Museum of Science and Industry, Pope was presented with a council achievement award “in recognition of her contribution to the re-emergence of gold coinage in the U.S. and for launching the country’s best-selling gold bullion coin, the American Eagle.” The U.S. Mint resumed minting gold coins during the 1980s; it last issued gold coins 51 years previously.

Proceeds went to the Industry Council for Tangible Assets, which co-sponsored the event with the American Numismatic Association and the Gold Institute. The World Gold Council is a non-profit association of 74 gold-producing companies from 14 countries whose stated primary purpose is to stimulate demand for gold.

River Oaks Gold has entered into an agreement to sell $2.25 million principal amount of convertible debentures and 14.9 million share purchase warrants of International Larder Minerals (TSE) to two River Oaks shareholders.

The purchasers are Rocco Schiralli, president of International Larder, and Chairman Jean-Claude Bonhomme. A private company, River Oaks is International Larder’s biggest shareholder with 20.8%.

The principal, accrued and unpaid interest on the debenture is convertible into common shares of International Larder at 15 cents each on or before July 11, 1996, representing a maximum of 25 million shares. Subject to regulatory approval, the transaction entitles warrant holders to purchase 14.9 million common shares at 20 cents each on or before July 11, 1996.

Bonhomme and Schiralli say the warrants and debentures are being acquired for investment purposes and they do not necessarily intend to increase their interest any further.

A preliminary prospectus was recently submitted by Waddy Lake Resources (TSE) to regulatory authorities for approval of a rights offering worth more than $1 million on the basis of one right for each common share issued. Each right will entitle the holder to subscribe for one unit at a proposed price of 20 cents per unit.

A unit will consist of one common share, one A warrant and one B warrant. Two A warrants will purchase, within a 6-month period, one share at 30 cents per share; two B warrants will purchase, within an 18-month period, one share at 40 cents per share.

Waddy said it intends to use the proceeds of the offering to finance additional work on the Komis deposit in Saskatchewan and to reimburse Golden Rule Resources for Golden Rule’s funding of work on the same project in late 1990.

Toronto-based Arimathaea Resources (TSE) recently completed a previously announced private placement of four units valued at US$1 million to a company controlled by Arimathaea Chairman Graham Ferguson Lacey.

Each unit consists of $100,000 worth of shares, $150,000 in convertible debentures and 90-day warrants to purchase 115,290 common shares at US$1.05 each. Arimathaea says it will use the placement proceeds for the acquisition of mineral resource properties and for working capital purposes. It has also agreed to pay a commission equal to 7.5% of the total proceeds raised in connection with the sale of the units and the exercise of 90-day warrants to Lacey’s company.