Holcorp plan rocks Arimetco

A stellar performer of late, oxide copper specialist Arimetco International was rocked by some bad news during the week ended April 7 after hitting a new high of $5.75.

Arimetco has been something of a favorite among analysts since Billiton Metals agreed to market cathode copper output from the company’s in-situ leaching operations in the U.S. Arimetco’s low for the year is $3.10. This week, Holcorp Mines said it is withdrawing a preliminary prospectus for a $4 million offering designed to secure the financing it needs to buy two copper properties (in Arizona and Nevada respectively) from Arimetco. Investor reaction shaved 50 cents off the Arimetco issue which fell as low as $4.95 before settling at $5. Employees at Holcorp weren’t returning telephone calls. As indicated by this week’s market activity, conditions aren’t getting any better for juniors. Making matters worse were a number of factors including the slump in Japanese share prices, the Olympia and York debacle and more indications that the hoped-for rebound in the economy isn’t materializing.

Today, April 8, share values were down for the second day in a row, before the composite 300 closed down 18.51 points at 3318.10 after 27.3 million shares worth $286 million changed hands.

However, Holcorp officials may have been consoled by the fact that it isn’t just mining industry minnows who are being affected by the economic situation. Down 13 cents to $32.88, Inco is cutting nickel output by suspending operations at its Shebandowan mine near Thunder Bay, Ont., and laying off 360 workers. Trading at US$3.36 per lb., nickel is just slightly ahead of Inco’s break even price. Down 38 cents today to $19.50. In the precious metals sector, American Barrick Resources and others were hit by this week’s US$6.25-per-oz. decline in the price of gold which closed today in London at US$337.50. Barrick fell by $1.50 in a 24-hour period to finish at $28.25. Echo Bay touched a new low of $6.88 before settling at $7. In a week during which nearly all of the metals were down, platinum was the biggest casualty. It plummeted to US$348 from US$360.25 a week earlier. From the Montreal Exchange, Societe d’Exploration Miniere Vior continues to report encouraging assays from drilling of a zone at its wholly-owned Douay gold project in northwestern Quebec. The company has two drills at work there. Trading 5,500 shares, Vior closed down 2 cents today at 45 cents.