Trading Summary (January 22, 2002)

The Toronto Stock Exchange‘s Metals & Minerals subindex finally sprang back to life gaining 66 points or 1.6% to lead eight advancing subindices on Tuesday. The golds lagged behind climbing 46.03 points or 0.8%. Overall, the TSE slipped 23.55 points to end at 7,559.3.

Franco-Nevada Mining continued to enjoy brisk action gaining 30 to $26.15 on nearly 5.9 million shares. Franco is all lined up for a proposed merger with the apparent winner of the battle over Normandy Mining, Newmont Mining. Franco shareholders are scheduled to vote on the Newmont acquisition on Jan. 30. Newmont’s bid for Normandy and Franco will head to a shareholder vote on Feb. 13.; the bid, which has been backed by Franco’s board of directors, is scheduled to close Feb. 15.

Kinross Gold saw nearly 3.6 million shares change hands. The issues fell 7 to $1.40 as investors sold off their shares. On Tuesday, the company announced that it agreed to sell 20 million shares to a syndicate of underwriters at $1.35 apiece for proceeds of $27 million. The deal also includes an option for up to an additional 3 million shares, exercisable 48 hours prior to closing, which is slated for Feb. 12.

Still on the rise after promising microdiamond counts from the newly discovered Artemisia kimberlite pipe in Nunavut, Pure Gold Minerals tacked on another 3.5 or 13% to end at 30 with more than 3 million shares changing hands. Partners Ashton Mining of Canada gained 6 to $4.10.

Other gold miners on the rise were: Barrick Gold, up 15 to $27.02; Placer Dome, which gained a 20 to $19.20; and Cambior, 8 or 8.25% higher at $1.05, a new 52-week high.

The base metal majors were higher across the board. Alcan gained $1.20 to $56.80 on about 1.3 million shares. The company beat fourth quarter earnings estimates (excluding nonrecurring items and foreign currency translation effects), but posted a net loss of US$357 million including charges and asset writedowns.

Inco grabbed 47 to reach $26.82; Teck Cominco’s B series rose 24 to $13.30; and Falconbridge ended a nickel higher at $16.30. On the minus-side were Aur Resources, off 8 to $3.60 and Breakwater Resources, a penny lower at 31.

Canada’s junior exchange returned Monday’s gains as the S&P-CDNX Composite Index slipped 3.59 points, or 0.3% to close at 1094.43.

Chapleau Resources fell a penny to 59 on more than 1.3 million shares. The bulk of the action, about 1.1 million shares, were sold by one of the company’s directors. Proceeds from the sale will be folded back into the company via a private placement of 1.5 million units at 50 apiece. Each unit comprises one share and one non-transferable share purchase warrant. Each warrant allows the holder to buy one share at 75 per share for one year.

New Blue Ribbon continued to catch investors’ eyes the issues finished unchanged at a dime on about 865,000 shares. The junior recently inked a letter of intent to acquire a 90% interest in the 28-sq.-km Lac Joubert diamond property, which is adjacent to the Majescor – BHP joint venture ground in the Otish Mountains region of Northern Quebec

Northern Empire Minerals surrender some of its recent gains falling 3 to 80 on 691,300 shares. The company’s recently staked 615-sq.-km Peregrine diamond property in the Coronation area of Nunavut is already subject to an option agreement with Diamondex Resources, which has the right to earn a 70% interest by spending $1 million by December 1, 2004.

Marum Resources continued to pull back dropping another penny to 13 with 622,500 shares on the go. Marum and partner Shear Minerals have identified 9 priority drill targets on the Birch Mountain diamond project in Alberta.