Vancouver Stock Exchange Market succumbs to profit-taking

The market has lost some of its earlier strength and appears to be consolidating for its next upward move. Trading volume has dropped sharply and not surprisingly many stocks have succumbed to profit- taking. Contributing to the distinctly negative tone at present are brokerage month-end and the threat of higher interest rates.

By presstime, the vse index had slipped nine points to 1997.7. Tuesday’s closing volume was 16.8 million shares, which is about half the record turnover achieved earlier this year. Among the more active issues today was Night Hawk Resources, which tumbled 15 cents to $1.80 on 122,000 shares. The company reports a group of individuals recently purchased 3.3 million Night Hawk shares, which sounds like a control change. It was the volume leader over our report period with a turnover of 4.3 million shares for a 90 cents gain to $1.95.

British Silbak continued its ascent with the “B” class shares rising 10 cents to $4.60. The company recently announced plans to spin off its real estate interests into a separate entity, the result being that Silbak will be a pure mining play.

Balcor Resources, which has been reporting encouraging assay results from its gold property near Lynn Lake, Man., was 12 cents better at $1.30. The latest results included 13.9 ft of 0.29 oz gold and 12.5 ft of 0.193 oz. Reward Resources, which has been drilling a gold property near Port Alberni on Vancouver Island, jumped 6 cents to $1.26. Alotta Resources, which was to begin drilling its gold property near Teck’s Lamaque mine last week, was 4 cents stronger at $1.64.

Reporting one of the largest gains over our report week was Centurion Minerals, which jumped $2 to $19. The company has called a shareholders’ meeting to split its stock three for one. Hycroft Resources & Development, which has increased leachable reserves at its Crofoot property in Nevada to 23 million tons, was ahead $1.37 to $14.62.

Climbing $1.27 to $5.87 was Perron Gold, which just over a week ago announced plans for a two- million-share private placement at $2.90 each. That’s a nice chunk of money.

Brohm Resources shot up $1.12 to $14.50. The company has completed the acquisition of 3.9 million shares of MFC Mining Finance from Kerr Addison and Ventures Trident for $28.7 million. MFC has a 51% interest in Blackdome Mining and concerns have been expressed as to what effect, if any, the control change will have on Blackdome. Grandview Resources, whose Carson Hill heap leach property (N.M. May 11/87) should be producing at capacity in the near future, posted an 87 cents increase to $14.50.

Marco Resources, which claims to be developing a gold property near Needles, Calif., shot up 95 cents to $3.75 and Trader Resources closed 30 cents higher at $3.30. Trader confirms that Elders Resources (an Australian company) has exercised its option to acquire three million shares and an equal number of warrants.