NEWS IN BRIEF (August 26, 1991)

Rouyn Mining Resources Inc. (ROU:ME) has changed its name to Richmont Mines Inc. (RIC:ME).

Wye Resources (CDN) says it has intersected a 28-ft. core length containing copper, nickel and platinum mineralization on the Gorham property, five miles north of Thunder Bay, Ont.

The mineralized zone was encountered in hole 91-01, the first of three proposed holes. Although assays are pending, previous drilling on the property returned grades of up to 1.05% copper, 0.4% nickel and 0.045 oz. platinum per ton.

The zone remains open along strike.

An agreement has been acquired by Kewagama Gold Mines (Quebec) (ME) to acquire an option in up to 96 claims in Langevin and Bellechasse twps. in northwestern Quebec from Simcor Canada Holdings.

Kewagama must pay 50% of the various costs associated with the claims group’s St. Sabine property; spend $1 million on exploration work by February, 1994; issue 100,000 common shares to Simcor; and make a $500,000 payment within one year after the completion of the required exploration work. Several gold and base metal showings have been reported on the claims group. Past exploration has included the drilling of eight holes.

The transaction is subject to regulatory approval.

Toronto-based Cessland Corp., a small gas producer, has amended its statement of claim regarding a 20-year-old dispute against Rayrock Yellowknife Resources (TSE) and its major shareholder, Discovery West.

Under the new claim, Cessland is demanding damages in the amount of $4 million, double the current $2 million. The lawsuit calls for the return of Cessland’s previous interest in Rayrock’s heavy oil deposits in the Cold Lake area of Alberta, as well as accounting and punitive damages. The oil lease was transferred to Rayrock under an agreement of trust and partnership before its merger with Yellowknife Bear Resources in 1986.

“We don’t believe there is any merit in the claim,” said a spokesman for Rayrock.

Prospector John Larche of Timmins, Ont., remains in an Edmonton hospital following an airplane crash. His condition at presstime was not known because of a news blackout at the University of Alberta Hospital.

The airplane, piloted by Larche, struck a mountain in northern Alberta. Passenger Harris Hanson died in the crash. Larche was reported to have suffered broken ribs, a fractured vertebrae and head injuries.

Rockridge Mining Corp. (RIM:VSE) has amalgamated with Meadfield Mining Corp. to form Keith Resources Ltd. (KEH:VSE). Holders of Rockridge shares receive one new for five old shares. Holders of Meadfield shares receive one new for nine old shares. The transfer agent is Central Guaranty Trust.

Following the tender of 5.29 million shares of Goldnev Resources (VSE) under an exchange offer, Prime Equities (VSE) has increased its holding to 9.58 million shares or about 86.7% of the company.

Under the offer, shareholders could exchange four Goldnev shares for five shares of Prime Equities.

Prime Equities issued 6,610,026 shares bringing the total number of shares outstanding to 50,610,026.

William Campbell, a director of the company, noted that about 1.5 million shares of Goldnev were not tendered under the offer and as a result, the company will continue trading as a separate entity.

Campbell added that Prime Equities does not intend to make a follow-up offer for the outstanding balance although he said it could be a possibility at some point in the future.

A loss of $5.7 million was reported by Total Energold (TSE) for the six months ended June 30, compared with a loss of $4.2 million in the first half of 1990.

Sales for the first half increased to $25.8 million from $16.7 million in 1990. The majority of the company’s revenue is generated by its 55% owned oil and gas subsidiary, Ranchmen’s Resources, while precious metal sales accounted for about $4.2 million.

Cash generated from operating activities in the first half was $3.9 million compared with $3.5 million in 1990.

Toronto-based Brascan Ltd. has sold its 29% interest in M.A. Hanna (NYSE) of Cleveland for $231 million to Hanna.

The announced price comprises $60 million in cash and preferred shares exchangeable into $171 million 7-year senior notes (representing about US$26.12 per Hanna share). Also, Brascan will receive 2.75 million warrants exercisable for seven years to repurchase an equivalent number of Hanna common shares at US$26.12 per share.

Hanna, in the rubber, plastic and related products business, recently announced it was negotiating to sell its interest in Iron Ore Co. of Canada to Mitsubishi Corp. of Japan.

Shareholders of Bond International Gold (NYSE) approved an arrangement that will allow LAC Minerals (TSE) to become the sole owner of the gold producer. Meeting in New York, the Bond shareholders voted in favor of a scheme of arrangement whereby one Bond share will be exchanged for 0.71 of a common share of LAC.

Bond will petition the Grand Court of the Cayman Islands on Aug. 30 to sanction the arrangement. If approved, the arrangement will become binding on all Bond shareholders. LAC will issue about 14.4 million shares to the Bond minority shareholders.

Toronto-based LAC owned a 65% interest in Bond when it announced early in 1991 it would make an offer to acquire all of the outstanding Bond shares.

Tenajon Resources Corp. (TJS:VSE) has amalgamated with Royal Scot Resources Ltd. (RST:VSE) and continues under the name Tenajon Resources Corp. (TJS:VSE). Holders of Tenajon Resources shares receive one new for one old share. Holders of Royal Scot receive one new for two old shares. The transfer agent is Montreal Trust.