Montreal Exchange (July 29, 1991)

Investors greeted a recent listing by Pegasus Gold with enthusiasm, trading almost 270,000 shares of the Washington-based gold miner during the week ended July 23. Pegasus, which was one of the first companies to use the heap leaching method of gold recovery, operates four mines in the western U.S.

“Over the past year we have had a good reception in Montreal from institutional investors,” said a spokesman for the company. “It’s quite a dynamic exchange.”

Having listed its common shares on July 18, Pegasus closed unchanged at $15.75.

In response to a sell-off that left Audrey Resources trading at $2.13, down 25 cents from last week’s close, the company issued a press release saying it does not know why its shares are losing value. Perhaps investors are getting tired of waiting for Audrey to sell its Mobrun mine and 50% interest in the 1100 project near Rouyn-Noranda, Que. The company has been negotiating the sale with a major, rumored to be Billiton Metals Canada, for almost two months. Although most of the conditions have been agreed upon, the companies are still haggling over a fair price.

Worried that its stock is trading at a discount, Aurizon Mines has filed a notice of intent to make an issuer bid for up to 2.15 million common shares, representing 10% of the public float. Partner Cambior has recently budgeted $3.6 million for underground drilling on Aurizon’s Sleeping Giant property near Amos, Que., while Aurizon itself has a working capital of $6 million. Aurizon dropped a penny on thin volume to close at 19 cents.