Trading Summary (September 06, 2001)

More doom and gloom from the technology sector sent the Toronto Stock Exchange down another 31.7 points to close at 7,416 on Thursday. The tech-heavy Industrial Products subindex fell 2.3%. The Oil & Gas sector’s 1.3% gain was not enough to counter. By day’s end, only four of the TSE’s 14 subindices were in the black.

Manhattan Minerals was the country’s busiest miner, gaining 4 to 84 with more than 1.6 million shares changing hands. Manhattan recently sold six million special warrants at 90 apiece for proceeds of $5.4 million. The fully subscribed financing is expected to close by Sept. 18.

The precious metals were mixed in New York. Gold gained US$1.10 to US$272.05 per oz. Platinum and palladium each shed US$4 to hit US$432 and US$448 per oz., respectively. Silver was unchanged at US$4.16 per oz. The TSE’s Gold & Precious Minerals subindex fell 46.48 points, or nearly 1%, to 4,787.01.

Another miner making news was Franco-Nevada Mining, which dropped 20 to $20.55. Franco has reached an agreement with Denver-based Echo Bay Mines to convert US$115 million in capital securities into common Echo Bay shares, giving the royalty company a controlling stake in Echo Bay. Echo Bay has entered into lock-up agreement under which Kinross would receive 57.1 million shares of Echo Bay for 11.4% of the company. For its part, Kinross climbed a penny to $1.36. Echo Bay shares plummeted 48, or more than 32%, to $1. Most of the other gold miners traded sideways.

The Metals & Minerals subindex fell 42.84 points, or 1%, to 4,105.80 points. Not surprisingly, most of the country’s base metal miners suffered losses. Leading the way was Breakwater Resources, which shed 4, or more than 7%, to 51. Boliden, which has announced the restructuring of its board, also announced its intention to convene a special meeting of shareholders to consider moving the company’s headquarters back to Sweden. The stock fell 1.5 to 26.5.

After bouncing off key support levels throughout the summer, Canada’s junior exchange finally fell through them like a hot knife through butter. The Canadian Venture Exchange breached the 3,000-point barrier, losing 28.27 points, or 0.9%, to finish the day at 2,973.24. The Mining Index fell through the 7,500-point marker, dropping 84.39 points, or 1.1%, to close at 7,422.50.

Financially troubled Conquistador Mines led the trading pack among mining-related issues, ending the day flat at 1 on more than 1 million shares. The company announced that it failed to make a US$45,000 payment due on the Great Eastern gold property in Nevada and has dropped the project. The junior said it has been unsuccessful in its efforts to raise money and its ability to remain in business is seriously in doubt.

Quaterra Resources got a boost from news that the drill rig is on-site at its Union Bay platinum-palladium property in Alaska. Shares in the company surged 5 to 20 on a volume of 794,000.

Shares in Kenrich Mining ended the day unchanged a 2 on a volume of 582,000. Investors sold off the stock over the past two months following news that the company would not enter the oil and gas business. The junior holds ground near the Eskay Creek polymetallic mine in British Columbia.

Shares in Leader Mining International continued to move higher on no new developments, up 12 to $1.45 on a volume of 254,000. The junior recently announced that financing is in place to move forward on its Cogburn nickel project, some 100 km east of Vancouver. Leader is planning a sampling and mapping program over the property.

No news appears to be bad news for Radius Explorations. Shares in the junior touched a 52-week low before recovering modestly to end the day down 4 to 53 on 72,730 shares. The junior recently tabled the results from the first seven holes into the Lupita zone on the Tambor gold property in Guatemala. Despite hitting broad zones of 1-2 grams gold per tonne, stock in the company has dropped from a high of $1.30 per share.