Insider Trading Batista holds 13% of TVX Gold shares

Toronto-based TVX Gold (TSE), the product of an amalgamation involving Consolidated TVX Mining and the wholly owned gold producing subsidiary of nickel miner Inco (TSE), is owned 62% by Inco. But as indicated by a recent issue of the Ontario Securities Commission’s OSC Bulletin, TVX Gold Chairman Eike Batista also holds a considerable portion of the amalgamated company’s 100 million issued shares.

After purchasing 2.1 million TVX shares in January for $4.10 each, Batista now holds 17.3 million, representing a 13% interest. The shares traded recently at $3.60 in a 52-week range of $3.05-8.25.

His control over the company is strengthened by an agreement allowing him to nominate five members on to the 11-seat TVX board.

While TVX is expected to produce 350,000 oz. gold this year from six mines in Canada, the U.S., Brazil and Chile, there is a price to be paid for the company’s Latin American connections. According to a Bank of Nova Scotia rating of 29 North American gold producers, TVX’ proven and probable gold reserves have been adjusted down to 6.2 million oz. from 7.7 million oz. to compensate for the risk of operating in Brazil.

Other mining insiders who were active in the stock market recently include:

Agnico-Eagle Mines (TSE) officer Mikey Drutz, who sold 25,000 shares for $7 to hold 173,190.

American Barrick Resources (TSE) officer Andre Falzon exercised 6,800 options at US$13. He also sold 6,800 for US$22.15 to hold 73,400 options.

Senior Vice-President Alan Hill, exercised options on 13,600 shares at US$13. He then sold 11,600 shares for US$22.25 to hold 2,000. Director Angus MacNaughton also sold 130,000 shares for US$20.925-21.175.

Aur Resources (TSE) affiliate Teck (TSE), which beneficially owns more than 10% of the company’s outstanding shares, bought 50,000 shares for $3.35 to hold 4.6 million.

Euro-Nevada Mining (TSE) director Jack McOuat exercised an option on 17,500 shares at $3.70. He then sold 16,200 shares for $12.75 to hold 33,800. He was later granted 50,000 options to hold 50,000.

Golden Pond Resources (VSE) director Vance White bought 132,500 shares for 93 cents. He later sold 45,000 shares for 35 cents to hold 87,500. White currently holds 80,000 options exercisable at 15 cents each.

Platinova Resources (TSE) affiliate Goldcorp Investments, which beneficially owns more than 10% of the company’s shares, bought 97,800 shares for $1.10-1.84 to hold 3.4 million.

Redfern Resources (TSE) director George Fink sold 13,000 shares for $2.75-2.95 to hold 23,400 shares.

Teck (TSE) officer Richard Drozd exercised options on 5,000 class B shares at $14.51. He later sold all of the shares for $20.75 to hold none.