Trading Summary (May 16, 2003)

Toronto’s gold stocks dropped 3.49 points or about 2% to 158.74 on Friday even as the yellow metal added US$2.10 to end the week at US$354.20 per oz. in New York. The base metal miners, and most of the TSX’s other subindices, headed south as well, dropping 0.69 of a point to 118.36.

Junior Tahera remained a hot issue, dropping half a cent to 11.5 on about 13.5 million shares. Tahera recently posted a first-quarter loss of $529,000 (2 per share), compared with a year-ago loss of $558,000 (nil per share).

Geomaque Explorations did the same ending at 6 with about 7.3 million shares. On Thursday, Geomaque announced plans to raise $7 million via a private placement of subscription receipts at 5.5 apiece. On receipt is good for one share plus half a warrant for no additional consideration. Each warrant is good for one Geomaque share at 9 per share. Geomaque also announced a debt-to-share conversion with Resource Capital Fund II and Sococo de Costa Rica, the mining contractor at Geomaque’s Vueltas mine.

Also seeing elevated action were: Wheaton River Minerals, off a penny to $1.24; General Minerals; plus 4 to $14.5; and Northern Orion Explorations, down 1.5 to 13.5. All three issues saw about 3 million shares traded.

On Friday, Northern Orion inked a deal with a syndicate of underwriters to place about 683 million units at 13 apiece for proceeds of up to $80 million. One unit comprises one share plus half a warrant. One full warrant is exercisable for one share at 20 per share for five years. The deal includes a $15 million over-allotment. Northern Orion will use the proceeds to fund its acquisition of a 25% stake in the Bajo de la Alumbrera copper-gold mine in Argentina from BHP Billiton.

Canada’s major gold producers were all lighter in the wallet by day’s end. Barrick Gold fell 62 to $23.65; Placer Dome ended 34 lower at $14.50; and Kinross Gold dropped 16 to $8.52.

Most of the base metal miners ended in the red. Inco was the busiest, dropping 33 to $25.57 on just fewer than 1.3 million shares. Sherritt International lost 2 pennies to $4.05 in thin volume. On Friday, Sherritt said it wrapped up the issuance of 25 million restricted voting shares for net proceeds of about $95 million. A syndicate of underwriters retains an option to purchase another 2.5 million Shares at the offer price.

Canada’s junior exchange ended the week in the black, thanks to investors snapping up select energy and technology related issues. The S&P-TSX Venture Exchange composite index gained 2.98 points, or 0.28% and closed at 1,074.65.

Goldminco fell to a 52-week low of 6, down 1 on 500,000 shares traded. The Perth-based junior has seen its stock priced halved since releasing drill results from the Balabag gold property in the Philippines.

Investors rewarded Minera Andes for proposing a merger deal with fellow junior La Mancha Resources. Under the merger proposal, 4.5 Minera Andes shares would consolidate into one share of a new company called La Mancha Mining. After the merger and consolidation, each existing La Mancha share will be exchanged for one share in La Mancha Mining. The proposal is still subject to the approval of La Mancha’s shareholders and due diligence by both companies. Minera Andes closed out the week at 31, up 1 on 263,775 shares, while La Mancha closed up 5 at $2 on just 1,000 shares traded.

Shares in Spider Resources continued to attract traders. The junior recently reported drill results from the Spider #3 massive sulphide project in the James Bay Lowlands of Ontario. Hole 6 drilled below the previously reported massive sulphides in the first two holes intersecting 2.9% Copper and 0.45% zinc over 5.6 metres and a deeper zinc-rich section running 5.4% zinc and 0.3% copper over 9.65 metres. Holes 3 and 4 were drilled 100 metres to the northeast with hole 3 yielding 5.25% zinc and 0.58% copper over 3.95 metres. Hole 4 testing the down dip continuation of the mineralization intersecting 2.41% zinc and 0.495% copper over 8.7 metres. Spider ended the day up a penny at 10 on over 423,000 shares.