Corona wins board control at stikine Res.

Minority shareholders in Stikine Resources (TSE), including Euro- Nevada Mining (TSE), provided the votes needed to place Corona (TSE) at the helm of Stikine management during a recent annual meeting. By a narrow majority (53.6%), Stikine shareholders voted in favor of a new board of directors including Corona’s President Peter Steen and Senior Vice-President Gil Leathley. Representation from Placer Dome (TSE), which owns a 45.3% stake in Stikine, was noticeably absent from the roster.

Euro-Nevada, which could hold the key to control of Stikine, showed its support for Corona by voting its 3.8% Stikine interest in favor of the Corona nominees. Corona holds a 45% interest in Stikine.

The other three directors elected to the 5-member board at Stikine’s annual meeting include: former Cominco (TSE) Chairman Norman Anderson; John Ivany, president of Prime Resources Group (VSE); and lawyer Stuart Angus.

Placer Dome and Corona are discussing the possibility of forming a joint venture to develop the Eskay Creek gold project in northwestern British Columbia, which is currently held by equal partners Stikine and Prime.

Meanwhile, Corona has followed through with a previously announced agreement to purchase Prime shares from insiders Murray Pezim, Lawrence Page and Arthur Clemiss. Corona now owns 18.1 million shares, or 43.1% of Prime. Right of first refusal and options on another 2 million shares, if exercised, would increase that stake to 48%.

Corona has stated that it intends to become operator if a mine develops at Eskay Creek. The company will open an office in Vancouver to oversee its gold interests, including Eskay, next month. Leathley has already moved to Vancouver, and Steen is on his way.

What role Placer will play in the exploitation of Eskay gold is still a question mark. “Its a big property,” said Richard Cohen, gold analyst for BBN James Capel. “There should be enough room for two companies.” He envisages a scenario whereby Corona would take over both Stikine and Prime, and then sell a percentage of the Eskay property to Placer. At the moment, Placer effectively owns 22.5% of the property through its stake in Stikine.

But Placer is also in a position to gain a healthy percentage of Prime. Prime shares, trading at about $6.50, are relatively cheap these days, and there is some speculation that Placer is taking advantage of the prices to increase its position in Prime.

If Placer is able to orchestrate a successful takeover of Prime, it could boost its stake in Eskay Creek to as high as 50%.