Vancouver Stock Market Prime problems stir market

But the fuss began to die down when Canarim finally agreed to take down the units at a cost of $4.25 million, after being persuaded to do so by the Superintendent of Brokers and the Vancouver Stock Exchange. VSE officials are also reported to be checking into why officials of Prime did not disclose the withdrawal until almost one month after it occurred. The Prime offering, $4.25 per unit (one share and one warrant), raised about $20.8 million.

Last week’s upward swing in trading on the Vancouver Stock Exchange was based on rumors that Corona Corp. was in advanced stages of negotiation to acquire Stikine Resources (VSE) which owns 50% of the Eskay Creek gold project north of Stewart, B.C. Corona later clarified the matter, saying the company is not carrying out a due diligence investigation of the Stikine/Calpine Eskay Creek gold project.

Nevertheless, recent trading activity in Vancouver is still dominated by companies under the Prime umbrella. Prime Resources gained nearly a dime to close at $2.05 over our report period. However, the company’s share price has fallen considerably since its September offering. Calpine Resources moved up 25 cents to close at $4.95. Another junior with ground in the Eskay Creek area is Adrian Resources which gained 3 cents to $1.36.

American Fibre was also an active trader over our report period. The company has a joint venture project (with Silver Butte Resources) near Eskay Creek. The American Fibre issue closed at $1.03 on the week.

Some of the other lower-priced players in the emerging Eskay Creek gold camp include Springer Resource at 24 cents , Tamavack Resources at 22 cents and Calvada Resources at 27 cents .

Dragoon Resources is also exploring a group of claims 5 miles south of the Stikine/Calpine deposit as part of a joint venture with Greenstone Resources of Toronto. The companies report that prospecting and geophysics have located targets for follow-up drilling in the Mt. Dilworth structure. Dragoon was active at $1.90 this week.

Glimmer Resources was ahead by more than $1 to $3.50 as more drill results are awaited from its joint venture property in Beatty and Hislop twps., 42 miles east of Timmins, Ont. The claims are under option to Noranda Exploration and a significant new discovery was announced earlier this month. Drilling is continuing in an attempt to test the continuity of the zone.

Westlake Industries slipped 4 cents to $1.55 after announcing it will increase its interest in the Bellavista gold project in Costa Rica held jointly with Minera Rayrock. Minera is planning a $6-million private placement of its shares with Westlake which has a 40% interest in the Bellavista project. Reserves are estimated at 14.2 million tons grading 0.05 oz gold per ton.

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