STOCK MARKETS — TSE composite index climbs, gold price

The Toronto Stock Exchange composite 300 index managed an almost 70-point gain during the 5-day period ended Aug. 30, closing at 4333.71. During the period, gold climbed $3.65 to close in London at US$386.60 per oz.

The week witnessed the likely end to the takeover saga of Lac Minerals. Vancouver-based Royal Oak Mines withdrew its offer for the million-ounce gold producer and will support the bid tendered by American Barrick Resources, which has the endorsement of Lac management. Shareholders of Lac are expected to vote in favor of the Barrick offer. Lac gained 88 cents to close the week at $14.78, Royal Oak was up 38 cents to $5.88 and Barrick climbed 25 cents $30.63.

International miner Metall Mining is gaining new owners. Parent Metallgeshellschaft AG of Germany agreed to sell its entire 50% controlling interest in Metall in a deal with a group of underwriters worth about $458 million. The underwriters reportedly found buyers for the shares even before the deal was publicly announced. Metall jumped 75 cents to $12.25. The Louvicourt project in northwestern Quebec, owned by Aur Resources, Teck and Novicourt, recently shipped its first copper concentrates. Surface construction is nearing completion, while underground development continues. The owners plan to reach a daily production rate of 4,000 tonnes by the second half of 1995. Aur closed unchanged on the week at $4.10, Teck B shares jumped $1.38 to $23.63 and Novicourt slipped a nickel to $4.05. A “hot” stock of late, Sudbury Contact Mines closed down $2.75 to $13 despite announcing encouraging results from the first drill hole of a summer program, at downhole depths of 2,266-2,285 ft., on the Victoria Creek gold property in northeastern Ontario. The company has more than doubled its 1994 exploration budget; it expects to spend at least two years exploring the project. On the Montreal Exchange, Mazarin Mining, along with subsidiaries Asbestos Corp. and Bell Asbestos Mines, has launched two lawsuits against LAB Chrysotile related to pension benefits. Mazarin was off 4 cents to $1.09. Noveder of Rouyn-Noranda, Que., plans to develop the Nugget Pond gold project in Baie Verte, Nfld. Work on a 6-km access road will soon be under way and construction of the portal and the boring of the access ramp is expected to begin in October. Up 11 cents, Noveder closed at 50 cents.

And ME-listed Stratmin, which has a graphite property in Quebec, says it has signed a letter of intent to acquire a 52% interest in competitor Applied Carbon Technology. Stratmin closed at $1.37.

Off a dime to $4.55 was junior International Gold Resources, which owns gold properties in Ghana, West Africa, that have been optioned to Echo Bay Mines (excluding the Bibiani property). International Gold recently completed the first phase of a reverse-circulation drilling program at Bibiani. In Nicaragua, Greenstone Resources is acquiring a 75% interest in the Libertad gold mine and surrounding concessions. The Toronto-based company is securing its interest in the project through a 75% ownership of Nicaraguan company MINISA, which now owns the project; the other 25% interest belongs to the Nicaraguan mineworkers. Greenstone climbed 57 cents to $2.32 on the week. Latin American explorer Golden Star Resources spent about US$3.2 million during the second quarter of the year on ongoing exploration activities on properties along the Guiana Shield. Golden Star, up $1.13 to $15, has a 30% stake in the Omai gold mine in Guyana.

Caledonia Mining, down 25 cents to $6.50, has signed an option agreement to earn up to a half interest in three coastal and offshore diamond and gold concessions in Ghana. The company must spend $1 million to earn its interest.