Queries Gold boosts Edda shares

I would appreciate any information you can give me on Edda Resources. The issue doubled a couple of weeks ago and I would like to know what caused it to go up. Edda appears to be a good stock for investors who are prepared to wait. A. Arguin Winnipeg, Man.

Edda Resources of Toronto recently gained a 51% controlling interest in a private company called Arctic Gold and Platinum. After Arctic Gold acquired interests in more than 25,000 acres in Athapapuskow, Man., Edda’s share price shot up from 40 cents to $1.10.

The coats-listed issue has slipped back to 75 cents .

Since acquiring the Athapapuskow properties, which contain platinum group metals associated with nickel-copper sulphides, Artic Gold has concluded several option agreements.

As reported in our June, 15, 1987 issue, more than 8,600 acres have been optioned to Platinum Resources of Canada which can earn a 49% interest in the Goose Lake property by spending $165,000 on exploration by Jan 31, 1988.

Platinum Resources, which raised $195,000 in exploration funds, plans to perform geophysical surveys and 4,000 ft of diamond drilling. Additional ground in the area has been optioned by Manitoba Platinum Resources and Park Place Platinum.

Following a recent private placement Edda has approximately 2.7 million common shares issued, and 900,000 common shares in reserve. Edda’s additional properties include a 0.5% net smelter returns royalty in 76 contiguous unpatented mining claims in Maisonville Twp., Ont.

The company also holds an option to earn a 50% interest in 40 contiguous unpatented claims in Quebec. The optioned claims are subject to a 1% net smelter returns royalty. Accord Resources holds an option to acquire the remaining 50% interest in the claims.