Eden Roc sells warrants, explores Ivory Coast

Eden Roc Minerals (TSE) will soon have nearly $18 million to spend on its vast exploration territory in Ivory Coast.

The company issued 3 million warrants through brokerage house Scotia McLeod. Each warrant, valued at $5.87, allows the holder to obtain one common share for no additional consideration.

The bulk of the $17.6-million gross proceeds will fund exploration on Eden Rocs 320-sq.-mile concession. Gold producer Marshall Minerals (ASE), which owns 60% of Eden Roc, holds an additional 510-sq.-mile property surrounding Eden Rocs ground.

Eden Roc holds a 68% interest in SOMIAF, a joint-venture company it formed with the mining arm of the Ivory Coast government. SOMIAF produces about 40,000 oz. gold from the open-pit, shear-zone-hosted Aniuri mine on Eden Rocs concession, at a cost below US$135 per oz. The ore is heap-leachable and the company hopes to be producing 100,000 oz. by 1996.

Four drills will soon be turning in an effort to increase reserves. Drilling is being done on the Aniuri pit and in old neighboring pits near the Aniuri mine.

Also, a new zone, 2.5 miles south of Aniuri, within the same shear zone that hosts the deposit, is being tested. The new zone, known as study area 9, was identified with a soil geochemical survey. Three gold anomalies were discovered, the largest being 3,000 ft. long and very wide, according to Eden Roc Chief Executive Officer Henry Quint. Several samples assayed in the 0.015-0.029-oz. range.

The political stability of Ivory Coast has been a source of concern for some Eden Roc investors. When reports began to circulate that the health of the 88-year-old Ivorian president was failing, worries of turmoil and unrest surfaced. As a result, futures prices of cocoa, a major export, began to fluctuate. The drop in Eden Rocs share price was also attributed to this event.

Recently, the president died. So far, however, the transition of power has gone smoothly. Quint said he expects the relationship between Eden Roc and the government of the Ivory Coast to be unaffected by the transition. He added: The new president was the former minister of finance and weve known him for some time. He is a very ethical man and has the support of the opposition party.