Montreal Exchange Gold loan for junior

One of the various means of raising money for exploration and development that seems to be growing in popularity is the gold loan. Recent news out of Quebec is that a junior, Nova-Cogesco Resources, has negotiated such a loan (worth $8 million) with Cambior Inc., one of its partners in the Silidor gold project at Rouyn-Noranda, Que. Nova-Cogesco will use to proceeds to help pay for its share of expenses at Silidor. No production decision has yet been announced for Silidor, but with reserves last reported at almost 5 million tons grading 0.19 oz gold per ton, the go-ahead is a near certainty. On the week, Nova-Cogesco gained 1 cents to $1.38 with 9,300 shares changing hands, while Cambior traded 92,200 shares and jumped $1.13 to $16.13. The third Silidor partner, Noranda Inc., moved up 50 cents to $23.50 on a volume of 344,700.

Trading volume during the week was encouraging, with the number of shares changing hands reaching 7.9 million one day. Both the general market portfolio index and mining and minerals index recorded gains.

Shareholders of Kiena Gold Mines and Sigma Mines have voted in favor of merging with their controlling parent, giant gold-producer Placer Dome, which gained 50 cents to $17.13 on 255,400 shares. The shareholders of Kiena and Sigma will receive shares of the parent firm.

Announcing an increase in reserves at the Golden Pond project in Quebec’s Casa Berardi area — to 11.7 million tons grading 0.22 oz gold per ton — were Inco Gold, a unit of Inco Ltd., and Golden Knight Resources. The project is expected to be in production this September. Inco traded 367,200 shares while slipping 25 cents to $39.63; Golden Knight climbed 25 cents to $9 on a volume of 5,500 shares.

Brex Exploration recently announced the first discovery of gold at the Desjardins property in northwestern Quebec. Brex, which slipped 17 cents to 77 cents with 9,300 shares changing hands and which has tested the property’s mineralized horizon to an average depth of 300 ft, plans a deeper drilling program.

Newly listed on the ME are Aurtec Mining Development of St. Eustache, Que., and Equity Reserve of Vancouver.