Plexus shareholders grill officers

Officers of Plexus Resources (TSE) were put on the spot by several disgruntled shareholders at the company’s recent annual meeting.

Angry that a deal to buy Total Energold’s (TSE) 51% stake in the company had fallen through without warning or explanation, the shareholders said Total should either divest its interest in the company or put up some cash for development of Plexus properties in the U.S.

“It doesn’t seem to me that Total has treated the minority shareholders or the company very well,” said shareholder Gregory Chornyg. “Why haven’t they sold if they have no interest in the projects?”

The shareholders believe that Total’s indifference to the company is dragging down their stock. Plexus closed at $1.05 recently, down from more than $3 in early 1990.

Plexus’ main asset is the Denton-Rawhide gold mine in Nevada, but the company is also developing a copper deposit in California and Oregon. Plexus Chairman James Coleman, also a Total director, responded to the attack by denying there had ever been any agreement to purchase Total’s interest. But later, President Arthur Ditto said he had been instructed by Total, a Canadian subsidiary of Total Compagnie Francaise des Petroles of France, to put together a buying group for the 51% stake after Total announced it would be selling its mineral assets in April, 1991. The announcement came just months after Total had paid $16.5 million for six million Plexus shares. “This issue should be resolved,” said Ditto. “It’s a priority of mine and of Jim (Coleman’s).”

Meanwhile, Plexus is securing permits for both the 75% owned Western World project north of Sacramento, Calif., and the 100% owned Bornite project in Oregon. If both projects are approved, Plexus expects to be producing about 25 million pounds of copper by 1994.

This year, Plexus expects to produce 23,200 oz. gold from the Denton-Rawhide mine, up from 19,940 oz. in 1991.