Queries Escrow shares are Goldbeam connection

I would like some information with regard to some shares I own in Goldbeam Mines Ltd. I want to know if the shares are still in good standing, where the mine property is located, and anything you can find out about the property’s operating status.

Having read about Goldbeam Resources in the June, 87 issue of The Northern Miner, I wonder if this company has anything in common with Goldbeam Mines. Vancouver, B.C.

As reported (N.M. Oct 5/87) Goldbeam Resources is attempting to bring the old Goldbeam mine at West Hawk Lake, Man., into production by mid-1988.

Since the 23-claim property is within a stone’s throw of the popular Whiteshell Provincial Park, that will be quite an achievement.

President Hugh Currie is not the first to attempt to mine the gold reserves from this area. Back in 1939, when the property was owned by Goldbeam Mines Ltd., steel rationing delayed underground exploration for six years.

After a production shaft was completed between 1944 and 1946, the Westhawk claims were sold with Goldbeam Mines to Homestake Explorations (now HSK Minerals) for 200,000 escrowed Homestake shares.

In 1960, the property was optioned to Winnipeg Gold Co. (now defunct) which failed to do anything with the property and it remained inactive until Currie bought it from Homestake in 1973.

After 15 years of development and three years attempting to get mining permits, Currie says open pit production should be in the range of 25,500 oz annually.

However, he must prove up between 350,000 and 500,000 tons of 0.4 oz gold per ton before a 300-ton-per-day open pit operation can begin. The operation will be assisted greatly by the property’s proximity to the Trans Canada Hwy. and a main power line running 150 ft from the mine’s 500-ft, 3-compartment production shaft.

Although the details haven’t been revealed, Currie was in Toronto recently to arrange a Toronto Stock Exchange listing under the name Goldbeam Resources and a major underwriting.

The only remaining connection between Goldbeam Mines and Goldbeam Resources lies in the 200,000 escrowed shares which are being held in trust by HSK Minerals for the shareholders of Goldbeam Mines Ltd.

Since it still holds a 3 3/4% net smelter royalty interest, including a $5,000-per-year advance royalty payment in the Goldbeam mine, HSK Minerals expects to earn around $500,000 annually from mining operations at West Hawk Lake.

As escrow agent, Central Trust holds a certificate of 200,000 Homestake shares registered to Goldbeam Mines Ltd. at Central Trust’s Toronto offices.

According to Central Trust, those shares can’t be released without the written consent of the Ontario Securities Commission and HSK’s board of directors. Upon release, the shares are considered at the current market value of HSK shares on the Toronto Stock Exchange.

However, since the shares are held in escrow, Morag Abraham, an accounts administrator with Central Trust, says they have no value. She advises Golbeam Mines shareholders to contact HSK President Hugh Harbinson, to find out when the shares will be released.