Alberta Stock Exchange Flag ponders deal

A recent staking rush northeast of Sudbury, Ont., has management at Flag Resources smiling. The junior, with property in the area, is reported to be considering a proposal from Falconbridge Ltd. for a joint venture. Falconbridge was rumored to be the main senior company behind the staking rush, the target of which is a deep-seated geophysical anomaly. Details have yet to be finalized; the deal would reportedly see two 5,000-ft. holes drilled on Flag’s claims as well as seismic work done to test the depth of the Huronian sediments which overlie the anomaly. Flag, which owns about 570 claims in the area, gained 10 cents to 40 cents on 51,200 shares for the week ended Sept. 4.

San Paulo Explorations is the subject of a takeover bid. A wholly owned subsidiary of TSE-listed MVP Capital, Valdez Gold, plans to make an offer to acquire two million shares of San Paulo on the basis of one Valdez share for two San Paulo shares. Trading 52,600 shares, San Paulo moved up 3 cents to 15 cents. Valdez Gold, which has a 51% interest in the Valdez Creek placer gold project in Alaska, is seeking a listing on the ASE.

Volume leader for the report period was Savanna Resources, which traded close to 877,000 shares and jumped 9 cents to 45 cents. Savanna continues to look for a new partner for its Turner-Albright massive sulphide project in southern Oregon. Early this year, Aur Resources decided against exercising an option to earn a 51% interest in the property.

Tusk Minerals says it has entered into an agreement with an unidentified VSE-listed company allowing that company to earn a 50% interest in property in the La Ronge area of northern Saskatchewan. Tusk has a 12% interest in the property, and a private company the remaining 88% interest. The agreement will allow the VSE company to increase its interest to 75% through additional expenditures. Tusk was 2 cents bid, 5 cents ask on the week.

Newly listed on the ASE is The Lithium Corp. of Canada, which climbed 20 cents to $1 on 1,500 shares. Lithium Corp. includes among its activities an option to acquire a 50% interest in the Oxford Lake property in northern Manitoba from Noranda Exploration.