Publicity, ethics rule Acadia Mineral meeting

Professional ethics took a front seat at the annual meeting of Acadia Mineral Ventures (TSE) in Toronto recently.

Several shareholders expressed concern about apparent discrepancies in tonnage and grade figures being reported on the company’s main gold property, the Mooseland in Halifax Cty., N.S.

An internal document, prepared by a Toronto-based geological consulting firm, which was supposed to have remained confidential, made its way into files of the Ontario Securities Commission, according to Acadia President Donald Smith. It contains uncut grades as high as 0.7 oz gold per ton.

“That, to us was a breech of professional ethics,” Smith said.

“We are well aware of the figures contained in that report, but we chose to ignore them,” vice- president and manager of exploration Avard Hudgins told shareholders. “As far as we’re concerned, the uncut grade (at Mooseland) is 0.40 to 0.42 oz and total drill-indicated tonnage is 2.1 million tons.”

Hecla Mining Co. of Canada is the operator of the project and has an option to earn a 60% interest in the property where a 1,100-ft exploration shaft is being sunk by mining contractor Patrick Harrison & Co.

Earlier this month Hecla signed a letter of intent with Biron Bay Resources (ASE). It would see Hecla’s interests in four gold properties in North America, including the Mooseland property, transferred to Biron Bay in exchange for 40% of Biron Bay’s outstanding shares. Biron Bay expects to raise a total of $29.2 million in equity financings through Yorkton Securities for these gold projects. A total of $10 million of this will be spent at the Mooseland for Hecla to earn its interest. Hecla will continue as operator.

Acadia has an agreement with two limited partnerships to raise $4.8 million for its own exploration work on ground at Cochrane Hill West (recently optioned from Tri-Ex, a private exploration company), Icelander Settlement, Moose River and a multitude of other gold and base metals properties in Nova Scotia and New Brunswick. Acadia is acting as operator on many of these projects in joint venture with Seabright Explorations (TSE), a wholly-owned subsidiary of Westminer (Canada), the wholly- owned subsidiary of an Australian company.

Somicom of Montreal is attempting to raise $3.5 million in flow- through funds and NIM Resource is looking for $1.2 million. The price of those flow-through shares will be set next spring.

At the meeting, shareholders gave approval to issue up to six million shares in that financing. Secretary-treasurer, Wayne Beach stressed six million is the maximum number of shares the company would want to issue. “At today’s market price of $1, for example,” he said, “we would only have to issue 4.7 million shares.”

The company has about 7.3 million shares outstanding and issuing a large number of shares to finance continuing exploration activity, has some shareholders concerned about dilution of the stock, which traded as high as $4.85 since listing in 1986.

“Are you setting yourself up for a hostile takeover?” a broker asked. “No we are not,” Smith said, “We have been hounded left and right to buy back shares to support the price, but have decided that would not be a wise use of shareholders money. And as far as a takeover goes, there is no indication in recent market activity to suggest that.”

Several shareholders also grilled Smith about an apparent lack of promotion of Acadia’s exploration activities in the Maritimes, going so far as to suggest the company get a listing on the NASDAQ system in the United States to get gain exposure in the larger U.S. investment community. “In a bad market, we should be shouting the loudest,” one shareholder suggested.