Vancouver Stock Exchange Pezim at centre stage

What received more attention for the week ended April 3: Pezim- related companies via trading in the market or Pezim himself in the press? Notice of a hearing by the British Columbia Securities Commission into insider trading allegations against Murray Pezim and two of his associates, John Ivany and Lawrence Page, certainly received more coverage than the successful merger vote between Prime Group Resources and Calpine Resources.

Calpine reached a high of $7 3/8 while Prime shares touched $6.25 before the issues fell back to $6 1/8 and $5 5/8 respectively following both the successful vote and the announcement of insider trading charges.

Pezim indicated that the commission’s charges could result in $15-million worth of financing for work in the Stikine Arch area north of Stewart, B.C., being cancelled. Although this would put a dent in the amount of money spent in the area this season, it is estimated that up to $35 million is already earmarked for exploration.

The hearing is set for April 17 and it could last up to two weeks. If the charges are cleared, there could still be time to raise financing before work programs start in June.

A further black mark for the area is the lack of an announcement by the British Columbia government on funding for an access road and Cominco’s apparent plans to use hovercraft as an alternative to building a road and charging user fees.

The Vancouver Composite Index seems to be taking the events in stride, sitting at the 767-level at 11 a.m., April 4, an increase of about 13 points over the week. Gold’s rebound over the period to the US$375 level did not likely hurt.

Two companies about to start a drilling program in the Stikine Arch Ambergate Explorations and Kenrich Mining. The two are exploring their property to the east and adjacent to Newhawk’s Sulphurets property, about 30 miles northeast of Stewart, B.C. Ambergate rose 39 cents over the week to $2.44 on more than 160,000 shares while Kenrich added 34 cents to close the period at $2.45 on just under 100,000 shares.

Continental Gold put in a strong performance over our report period, rising $3.25 per share to $14.75 on a respectable 150,000 shares. The company is developing a large copper-gold deposit north of Prince George, B.C., with 30% partner B.P. Resources. The issue has traded about 1.8 million shares during the past month on the Vancouver Stock Exchange and NASDAQ, fuelling the various takeover rumors floating around the street.

Canadian Cariboo Resources was very active during the week, reaching a high of $1.35 per share before settling at $1.12, an increase of 40 cents on more than two million shares. The company has acquired interests in a number of claim groups in the Stikine Arch area as well as optioning a 50% interest in the Doc property northwest of Stewart, B.C., from Silver Princess Resources and Magna Ventures. The Doc property had previously been optioned to Echo Bay Mines which dropped the property last year after an extensive amount of work.

A change in management at Lexington Resources seems to have spurred some activity in the stock. The issue traded more than 500,000 shares over the period jumping from 20 cents to $1 before falling back to 75 cents. The company has released no definite plans.