Toronto Stock Exchange (September 18, 1989)

Another 10 pts were clipped from the composite index which closed at 3917.01 pts. Metals and minerals were also weaker sliding 31.99 pts to 3707.72 pts. Although copper prices have pushed into the $1.30 (US)-per-lb range as a result of on-going strikes, nickel, zinc and lead were all s old off this week.

American Barrick Resources slipped 75 cents to $25.25. An insider trading report, citing several top officers as sellers, triggered some nervous gossip among investors. The company says the officers were merely exercising options that were due to expire. As options all carry an exercise price, the shares had to be sold by several officers in order to get the cash required to pay for the shares in the first place. There’s nothing out of the ordinary about that.

Amax Gold had a healthy advance to $15.38 where it remained unchanged at presstime. Echo Bay Mines, however, dipped to $18.13. LAC Minerals, which will be getting a big check from Corona Corp. for its Williams mine, was easier at $10.88. Corona won the mine in a lawsuit.

Base metals issues were generally easier. One which bucked the downtrend was Trimin Resources. The issue surged to a high of $2.80 before coming back to $2.65. Volume was a respectable 408,000 shares. Why all the excitement? A field trip of several mining analysts to the company’s zinc-copper property in Saskatchewan revealed a potential mine in the making (see front page story). The issue, which had a market capitalization of about $10 million before the field trip, didn’t stay there for long once the analysts got back.

Audrey Resources, which looks like a matured Trimin, is raising $22 million from an offering in Canada. A portion of the cash will be used to pay off debt incurred in building a new 1,200-ton-per-day mill at the company’s Mobrun zinc- copper mine. The issue recovered to $3.70 — up 15 cents .

The senior base metals issues took it on the chin as most metals retreated. Inco Ltd. lost 62 cents to $39.63 whereas Falconbridge Ltd. gave up less than a quarter to $36.75. The deadline for a takeover offer of $37 per Falconbridge share from Noranda and Trelleborg expires on Sept 15. By all accounts, it appears like a done deal unless a last-minute counter offer hits the table.

Plexus Resources was active, trading to $4.30. The company’s Rawhide gold mine project in Nevada is moving forward and an intriguing copper deposit in Oregon has been acquired in property swap.

Windarra Minerals continued to lose ground, closing at 85 cents . The issue made a brief but frenzied advance last week after an anonymous caller began spreading a story of a significant gold discovery on a project in Saskatchewan. Cameco, the project operator, said the story was unfounded. The issue promptly sold off.

St Andrew Goldfields has a gold mine in production but little market support. The issue dipped to a new low of $1.25 before recovering to $1.30. The company’s mine east of Timmins, Ont., poured its first gold last month.

Aur Resources was firm at $9. Lawsuits between Aur and its partner Louvem have dulled investor enthusiasm for their zinc-copper find near Val d’Or, Que. The deposit hosts reserves in excess of 18 million tons. Louvem was unchanged at $5.38.

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