INSIDER TRADING Audrey grants Kearney options

With Minnova (TSE) developing the 1100 lens at Audrey Resources’ (TSE) Mobrun polymetallic mine at Rouyn-Noranda, Que., some analysts were expecting Northgate Exploration (TSE) to sell its 18% stake in Audrey. But a recent transaction involving Audrey and Northgate seems to indicate that they may have drawn the wrong conclusion.

According to the Ontario Securities Commission’s Insider Trading Bulletin, Audrey has granted Northgate President John Kearney 40,000 options. The options were granted in two blocks of 20,000, one of which is exercisable at $3.

When the second block was reported in late January, Audrey shares were trading at $2.80, well below their 52-week high point of $4.30. However, the economic warning signals that are driving investors out of the stock market have also driven Audrey shares down to a new low for the year of $1.70.

Audrey failed recently to boost its gold production to more than 100,000 oz. by purchasing the Canadian and U.S. mineral assets of Asamera Minerals. The Audrey bid was rejected by Asamera’s parent company Gulf Canada Resources.

Other mining insiders active in the stock market recently include:

American Barrick Resources (TSE) Vice-President Kenneth Thomas exercised an option to purchase 27,200 shares for $8. He later sold all of those shares for $22.125-22.50 to hold none.

Anglo Canadian Mining (TSE) President Robert Jong bought 135,769 shares indirectly via Junmar Resources for 13-50 cents to hold 1,018,077.

Ansil Resources’ (COATS) director Howard Banting exercised an option to buy 50,000 shares for 75 cents to hold 67,000. Director Todson Becker also exercised an option on 50,000 shares at 75 cents. He bought an additional 2,500 for 90 cents to bring his holding to 57,000.

Bitech (ASE) Vice-President Samuel Reed was granted 60,000 shares for 27 cents as compensation for property. He later sold 65,500 shares for 20-26 cents to hold none.