A proposed takeover bid (at $1.50 per share) of a junior by Quebec gold producer Cambior Inc provoked a response by the junior, but it wasn’t perhaps what Cambior was expecting.
The junior, Nova-Cogesco Resources, is now proposing a merger with its major shareholder, MSV Resources, with the two juniors combining their promising northern Quebec gold-exploration projects (Silidor, Norlartic and Eastmain) under one corporate roof. It is interesting to note Cambior already has a small shareholding in Nova-Cogesco, and both companies have an interest in the Silidor project. On the week, Cambior gained 25 to $13.50 on 144,900 shares, Nova-Cogesco slipped 14 to $1.40 on a volume of 85,300 and MSV dropped 13 to $1.86, trading 53,200 shares.
It was another encouraging week on the ME, with the mining and minerals index jumping almost 34 pts and the market portfolio climbing more than 26 pts. Daily trading volumes were light-to-moderate, ranging from 4.1 million to 7 million shares.
Underground sampling of the Aubelle vein at the Belleterre property in northwestern Quebec returned an average grade of 0.18 oz gold per ton, J.A.G. Mines reports, adding it is negotiating with a potential partner for the development of the project. Trading 20,900 shares, J.A.G. closed unchanged at 12 .
Set to resume drilling at a polymetallic deposit in Estrades Twp. in Quebec’s Casa Berardi region is Golden Briar Mines, which closed unchanged at 10 with 99,900 shares changing hands. Golden Briar is earning a 51% interest in the project from Radisson Mining Resources through expenditures of $2 million. Radisson lost 4 to 33 , trading 53,200 shares.
Signing an option agreement recently with American Barrick Resources involving the Halliwell property in the Rouyn-Noranda, Que., area was Mirandor Exploration. Barrick may earn a 60% interest in the property by spending $1 million on exploration work by the end of 1990. Mirandor, trading no shares on the week, was 17 bid and 27 ask, while Barrick gained 13 to $20.63 on 85,300 shares.
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