Prime Equities launched as public company

Headed by Chairman Murray Pezim and President Chet Idziszek, Prime Equities (VSE) was recently launched as a publicly trading company holding under its corporate umbrella interests in numerous resource companies and mineral properties in various stages of exploration and development. “Together with the Prime Equities team of proven mine finders and developers, I intend to spend all my energies in making Prime Equities the largest and most successful of all my ventures,” Pezim stated.

The outspoken promoter, best known for his role in the Eskay Creek and Hemlo gold discoveries, also intends to continue his ongoing battle with British Columbia securities regulators.

After a lengthy hearing last year, the British Columbia Securities Commission found that Pezim, John Ivany and Lawrence Page contravened disclosure requirements during a period in 1989 when the trio managed both Calpine Resources and Prime Resources. At that time, Calpine was drilling the Eskay Creek polymetallic discovery north of Stewart, B.C., now owned 50% by Prime Resources Group (VSE).

The commission imposed a 1-year trading ban and ordered the trio pay two-thirds of the costs for and related to the hearing incurred by the commission and by Wade Nesmith, the Superintendent of Brokers.

However, Pezim, Page and Ivany were granted leave by the Court of Appeal in mid-January to appeal the decision, along with a stay of the decision pending the appeal. A date has not yet been set, but it is known the court will be asked to determine if the commission erred in matters of law in reaching the conclusions it did.

In the meantime, Pezim and Idziszek plan to build on Prime Equities’ asset base which was acquired from Prime Resources Group, now managed by John Ivany and Corona (TSE) nominees. These consist of $2.5 million cash, interests in various natural resource properties, and equity interests in public and private companies involved in mineral exploration and development.

The transaction was part of a complex agreement that gave Corona control of Prime and a greater interest in Eskay Creek last year. That over time will increasingly sever the strained corporate relationship between Pezim and his former backer, Corona Chairman Ned Goodman. The two had a falling out last summer when Corona was vying for control of Eskay Creek with Placer Dome (TSE), and Pezim and several associates are no longer on Corona’s board.

Later this month, as part of the agreement, Prime Resources Group will distribute to its common shareholders (of record on Jan. 22, 1991) a dividend consisting of 1.5 shares of Prime Equities for each five Prime shares held.

Even though Prime Resources will still hold a sizable stake in Prime Equities after this transaction (Corona will also hold a minor interest), a voting trust ensures that control remains with Pezim.

That’s important to Pezim, as it is no secret he has been talking with other mining groups about future business opportunities, particularly Kennecott, now owned by RTZ Corp. of London, England.

Prime Equities said future growth will involve increasing its exposure to “emerging exploration areas” through a variety of avenues that may include takeovers and mergers of resource companies, or by assisting its managed companies in obtaining properties in such areas.

In the meantime, Prime Equities and its managed companies will participate in over 50 exploration projects across North America this year. Exploration expenditures are expected to be more than $15 million.

On the exploration front, work will continue on the Rock & Roll property in the Iskut River region of British Columbia where Thios Resources (VSE) and Eurus Resource (VSE) reported the discovery of volcanogenic massive sulphide mineralization.

Several other companies are active on adjacent or neighboring properties, including Asiatel Media (VSE) and Link Resources (VSE) which plan to explore the nearby Inhini and Hoodoo properties.

Consolidated Rhodes Resources (VSE) is now drilling its Arizona gold properties, and it will resume work next season on a porphyry copper-gold prospect in the Galore Creek camp of northwestern British Columbia.

A number of other companies managed by Prime Equities will be continuing exploration of properties near the Eskay Creek property north of Stewart, B.C.

On the development side, Prime Equities is participating in the Goldstream copper-zinc massive sulphide project, a former producer near Revelstoke, B.C., by virtue of its 47.5% interest in Goldnev Resources (VSE).

Goldnev and partner Bethlehem Resources (VSE) are planning to bring the property back into production this year. A $1.1-million exploration program is also under way aimed at seeking additional reserves beyond the minable reserve of 1.86 million tonnes (2 million tons) grading 4.81% copper and 3.06% zinc on the Goldstream property.