Unlisted Trading (October 14, 1991)

Trouble is brewing in the boardroom of Teddy Bear Valley Mines, following recent allegations by former director Paul Zyla. Zyla, who has initiated legal proceedings against the company and Chairman Ross Hofmann, claims that Teddy Bear wrongfully transferred a large block of shares into Hofmann’s name during the 1984 company reorganization.

The block, thought to represent about 50% of Teddy Bear’s share capital at the time, belonged to the Teddy Bear Valley Syndicate, an investor group formed in 1927 to develop Teddy Bear’s claims near Matheson, Ont. Some of the original investors or their heirs are beginning to emerge as the Lightning zone, half of which lies on Teddy Bear ground, develops into a viable deposit. Hofmann, as acting manager of the syndicate, recently called and then cancelled a meeting of syndicate members. Teddy Bear closed unchanged at $1.75 for the week ended Oct. 8.

Gaining three cents to close at 15 cents, Greenline Business Stores says that its Costa Rican gold property has entered production. Greenline, with an 80% net profit interest, says the mine is producing at a rate of 25 tons per day with recoveries in the range of 0.33-0.5 oz. per ton of milled ore.