Montreal Exchange Livelier trading days

A relatively quiet market of late gave way to holiday-jitters during the report period, with investors in a more upbeat mood and Inco Ltd. reminding everybody what “heavy” trading is all about. On the week, both the market portfolio and mining and minerals index posted gains, the former moving up more than 30 pts and the latter jumping almost 79 pts. Daily trading volumes ranged from 3.8 million to 7.1 million shares, the latter recorded the day before Inco shares went ex-dividend. Investors were reacting to a special $10(US) per share dividend awarded by Inco management as part of a deal incorporating a “poison pill” provision into company policy. Inco closed up on the week at an ex- dividend price of $31.63.

Reporting bad news was Augmitto Explorations, which says it has withdrawn its prospectus offering in Quebec and Ontario because of market conditions. The company is trying to raise needed capital to bring its Beauchastel gold project near Rouyn-Noranda, Que., into production. Augmitto lost 21 to 65 .

Producer Belmoral Mines is negotiating to acquire the Ketza River gold mine in the Yukon from the two companies which brought that project into production, Canamax Resources and TSE-listed Pacific Trans-Ocean Resources. Belmoral, which dropped 22 , has agreed to buy Canamax’s 50% share and would either take over or amalgamate with Pacific. Canamax on the week slipped 5 .

Financial help for MSV Resources is on the way from Northgate Exploration, the latter proposing to provide $1.3 million by way of a private placement and $5.2 million (plus interest and banking fees) in the form of a loan, repayable either in cash or shares and warrants. The $5.2 million would represent MSV’s final payment to Placer Dome for Placer’s 51% interest in the Eastmain gold project in northern Quebec. MSV and Northgate were each down 25 , to $1.25 and $6.75, respectively, while Placer closed unchanged at $16.

Gaining $2.50 on the week to $9.25 was Asbestos Corp., which is controlled by the Quebec government. Minority shareholders took the company to court following acquisition by the provincial government of a majority interest earlier this decade. That legal action has still to be resolved. However, in a case (involving another Quebec firm) which may or may not bear directly on the Asbestos suit, the Supreme Court of Canada has ruled provincial Crown corporations are not exempt from regulatory rules governing share trading.