Montreal Exchange Trading slackens off

Investors seemed to have had their minds on other matters during the holiday season, with daily volumes ranging between a feeble 2.3 million and 3 million shares for the 4-day trading week ended Jan. 2. Both the market portfolio and mining and minerals index posted gains, the former by almost 47 points and the latter by 12.2 points.

Statistics compiled by the ME for 1989 gave the market portfolio an 18.5% increase by year’s end, and the mining and minerals index a 15% rise. The average daily volume in 1989, at 6.5 million shares, was up 27% from the previous year. The exchange welcomed 10 new resource companies in 1989, well down from the previous year.

Junior Muscocho Explorations, the flagship company of mine- finders Terry Flanagan and Jack McAdam, has found the startup periods at the Magino and Magnacon gold mines in northern Ontario exceptionally challenging and has agreed to a deal which will see Echo Bay Mines become the operator of both mines.

In return for part ownership in the mines, Echo Bay is giving up its equity investments in Muscocho and two Muscocho-associated companies, Flanagan McAdam Resources and McNellen Resources (both listed on the TSE). Trading 15,800 shares, Muscocho slipped 49 cents to $1.80, while Echo Bay was down 75 cents to $21.25 with 25,700 shares changing hands.

Radisson Mining Resources has reached agreement with Augmitto Explorations whereby the former will acquire a 75% interest in the Beauchastel mine and mill of the latter near Rouyn-Noranda, Que., for $2.2 million and a $300,000 loan to Augmitto. Construction of the mill has yet to be completed. Radisson closed unchanged at 64 cents on 53,300 shares.

Obtaining an option to acquire a 51% interest in the Cape Spencer, N.B., gold property of Mispec Resources was Hecla Mining. Hecla, to act as project operator, must make cash payments and exploration expenditures totalling $1.89 million during a 5-year period to earn its interest. Mispec was 30 cents bid-35 cents ask for the week.

Minieres du Nord, which dropped 2 cents to 22 cents on 33,200 shares, recently added to its land holdings in the Matagami, Que., area by staking new claims. The company has also negotiated a flow-through agreement to raise funds to allow it to continue its exploration work.