Firm nickel price cited for Timmins Nickel’s strength

Investor interest in shares of Timmins Nickel (TSE) recently drove the issue to a high for the year of $1.38 compared with its low of 42 cents.

President Stephen McIntyre attributed the share activity to a resilient nickel price which has remained close to US$4 per lb. as supply for the metal has stayed in line with demand.

He said the stock is also being driven by the company’s decision to issue between 1.5 million and 3.27 million special warrants at $1 each to raise $1.5-3.3 million for exploration around its Redstone nickel mine near Timmins, Ont.

Scheduled to close July 25, the financing is being underwritten by Richardson Greenshields of Toronto.

Last year, Timmins Nickel extracted 519,000 lb. from 74,400 tons of ore from Redstone at a cost of US$145 per lb. In 1991, the company expects to produce five million pounds from Redstone plus an additional four million pounds from the nearby Langmuir No. 1 deposit.

Exploration this fall will focus on the Shaw Dome geological structure which has already given rise to the Redstone and Langmuir mines. Other known deposits located along the Shaw Dome include Timmins Nickel’s 620,000-ton (grading 1.0% nickel) Tontine and 200,000-ton Langmuir No. 2. With 11.6 million shares outstanding, Toronto-based Timmins Nickel is currently the only junior nickel producer in North America.