Montreal Exchange: New resource listings fuel market

Wednesday close, Nov 12

New listings are powering the Montreal Exchange to one of its best years ever. About one-third of more than 100 new listings on the exchange so far this year are resource companies, most of them junior mining firms, that are increasing the visibility — and volatility — of Canada’s oldest stock exchange.

The most active issue on the Montreal Exchange this week was Yorbeau Resources, trading 354,000 shares and remaining unchanged at 65 cents .

The company recently announced that it had completed a financing of common shares, warrants and flow-through shares to raise $7.5 million. Most of the money will go toward development of its Astoria gold project near Rouyn, Que., where a production decision is expected in 1987.

Parquet Resources, a new listing on the exchange, says it has received approval for a private placement of flow-through shares to raise up to $500,000. It plans to use the money on its Holmwood gold prospect in the Beardmore area of northwestern Ontario on which it has the option to earn a 100% interest.

Trading in Parquet was light — it’s also listed on the TSE — but it held even at 45 cents after dipping during the week to 41 cents .

Cogesco touched a year low of 53 cents on 64,700 shares although it gained some of that back to close the week at 58 cents . Even though the company is a joint venture partner on four gold properties that are close to production decisions, the market seems to be ignoring the potential for Cogesco to gain cash flow from operations.

Noranda was active on the exchange trading 247,400 shares and moving up 25 cents to $21.12. The company says it is forming a public company that will hold its interest and the interests of Goliath Gold Mines and Golden Sceptre Resources in the Hemlo Golden Giant gold mine.

Cambior, a gold producer with a half interest in the Doyon mine in northwestern Quebec, was up $1 to $16.12 on 139,800 shares. Its first financial results as a public company — it only purchased its assets at the end of July — show per-share earnings of 11.5 cents .

What’s more, its partner at the Doyon mine, Lac Minerals, reports good results from drilling on the Doyon property: grades of 0.42 and 0.34 oz gold per ton over true widths of 20 and 23 ft respectively. Lac says the results have “major tonnage implications.”

Those results come at a time when Lac’s stock is riding high, up $2.50 on the week to $29.75 on 86,700 shares, and up almost $13 from the low it set immediately after an Ontario court awarded the large Page-Williams gold mine at Hemlo to Corona Mar 7. Lac is appealing that decision, hoping to have the mine returned to it.