Bar in the picture on Nevada gold mine

The recent high grade gold discovery at the Buckhorn mine (N.M., Sept 21/87) in Nevada has tended to focus on two companies: Cominco Resources International and Equinox Resources.

But Vancouver-based Bar Resources has a 20% net proceeds interest in the operation which the stock market has come to recognize. The day before the news was announced Bar traded at 80 cents but it has since climbed to around $2.20.

The company’s net proceeds interest is applicable after payback. But deciding when payback occurred has been a contentious issue between the two companies. Bar claims Cominco has recovered its development costs and indeed has received over $16.5 million so far. A spokesman for Bar believes his company is entitled to 20% of at least $1.3 million and he says the matter has been taken up with Cominco.

The attractive thing about Bar’s interest is that it is completely carried and expense items are well defined in the agreement, he adds. The company would not have to put up any money if the operation was expanded. So it could participate in a larger mining operation with no risk. Bar had the property originally but it was later put into Bethlehem Copper which was taken over by Cominco.