COATS Trading Features (March 07, 1988)

A new issue, Transgold Resources, was the volume leader on coats this week. After trading more than 320,000 shares, the issue advanced from its issue price of 45 cents to a high of 80 cents . With little stock out, the company controls a large tract of land in the Wawa-Goudreau area of Ontario. This was acquired under option from Algoma Central Railway. The company has also used part of its proceeds to purchase 333,000 common shares of Jerome Gold Mines. Jerome has an interest in the former producing Jerome mine in the Swayze area south of Timmins. Veteran miner Muscocho Explorations is the operator on the Jerome project.

Another new issue didn’t fare quite as well as Transgold. Asquith Resources, which was initially planning to complete an offering at 80 cents before the October crash last year, eventually completed its offering at 36 cents per share. The bid-ask was 37 cents -42 cents . The company holds several gold properties in the Shiningtree area of Ontario.

Other better issues include Tarzan, which was steady at $1.25. Tarzan holds a large portfolio of properties in the Casa Berardi area in Ontario and Quebec.