News in Brief (June 29, 1987)

Echo Bay Mines recorded a net income during the first quarter of this year of $8.1 million (18 cents per share) compared with $5.7 million (14 cents per share) for the same period in 1986. Total revenues, including money received from the sale of the 103,356 oz gold at an average price of $402, during the quarter were $43.4 million. Echo Bay has announced it will split its shares two-for-one to shareholders of record on July 14.

Nova Beaucage Mines and Minnova Inc. have reached an agreement whereby Minnova may earn a 75% interest in the Kirana Kirkland property in northern Ontario by spending $4 million on exploration and development plus $250,000 in cash payments. The property comprises 44 contiguous claims located 1.5 miles north of Lake Shore Mines. The property contains five old shafts plus 3,000 ft of underground workings, with ore reserves of 50,000 tons averaging 0.4 oz gold per ton delineated above the 275-ft level, Nova Beaucage President Glen Milne reports.

Cominco Ltd. is filing a preliminary short-form prospectus in Canada for the issue of units, each consisting of one deferred retractable redeemable share and one commodity-indexed common share purchase warrant. Exercise price of the warrants is indexed to the average market prices of zinc and copper at the exercise date. Proceeds will be used to reduce Cominco’s bank loans and other short-term borrowings. An underwriting group consisting of Nesbitt Thomson Deacon, Dominion Securities and Pemberton Houston Willoughby Bell Gouinlock will handle the issue.

Oracle Resources plans to become active in oil and gas exploration, it says, initiating a new direction for the company which up to now has been involved with mineral exploration. To help fund the new activity, Oracle is completing a private placement of 5,146,774 common shares for $1,595,499, in the first stage of a financing plan to provide funds for exploration and acquisitions.

Media Videotex Corp has changed its name to New Century Resources Ltd. (ncy.a:vse) on a 1-new-for-5-old share basis.

Northgate Exploration recorded a a first-quarter net income of $76,000 (0.5 cents per share) compared with $222,000 (2 cents per share) for the same period in 1986. Results for the 1987 first quarter include an extraordinary tax recovery of $800,000 (5 cents per share) as well as the unrealized exchange loss of $554,000. Gold production for the quarter was 23,400 oz compared with 19,000 oz for the same period last year.

A net income of $18 million ($1.72 per share) during the first quarter of this year has been reported by Conwest Exploration, compared with $3.9 million (34 cents per share) for the same period in 1986. Conwest recorded its 11th consecutive profitable year in 1986.

Asamera Minerals Inc., wholly- owned subsidiary of Calgary based Asamera Inc., has withdrawn its proposed initial public offering of common shares because of the current uncertainty and weakness in the gold markets. The company says that it will consider such an offering only under conditions that adequately reflect the value of its mineral assets.

A 3,000-ft diamond drill program has been started by Freewest Resources on its wholly-owned Collet- Laberge property, which consists of 80 contiguous claims and is located directly south of Casa Berardi Twp. in northwestern Quebec. The company recently completed a public offering through Osler Inc. which netted $495,000. Freewest is negotiating for additional flow-through funding.

A program of geophysical surveys has been completed by Geomaque Explorations on the firm’s 29-claim gold property in Bourlamque Twp., Val d’Or, Que. Many geophysical anomalies have been outlined which have not been previously drill tested. A program of reverse circulation drilling is under way, with diamond drilling to follow, President Leith Hellens reports.

Metall Mining has filed a final prospectus for a public offering of 13,856,666 common shares for an aggregate issue of $166,279,992. The underwriting is being led in Canada by Burns Fry, McLeod Young Weir and Nesbitt Thomson Deacon, and internationally by Burns Fry, Deutsche Bank and Dresdner Bank. Proceeds will be used to develop existing projects and to finance acquisition and exploration projects.

Bondell Resources has changed its name to Bondell Industries Inc. on a share-for-share basis.

Canfic Resources has changed its name to Delcorp Resources Inc. on a 1-new-for-2.5-old share basis.

Massive Energy has changed its name to Massive Resources Ltd. on a share-for-share basis.

Amhawk Resource Corp. has changed its name to Consolidated Amhawk Enterprises Ltd. on a 1-new-for-4-old share basis.

Orilya Exploration and Serem- Quebec, a subsidiary of the French Bureau de Recherches Geologiques et Minieres, have reached an agreement whereby Orilya may acquire 50% of Serem-Quebec’s interests in 1,482 claims in northwestern Quebec, between Val d’Or and Chibougamau. Serem-Quebec will be the operator; Orilya, which will undertake a public financing, will spend up to $8 million on exploration programs over three years in a search for gold, silver, copper and zinc.