Total Erickson may acquire additional Getty shares

Holding an 11.6% equity position already, Total Erickson Resources has not ruled out acquiring more stock in Vancouver-based Getty Resources. At present the company owns approximately 1,089,300 Getty common shares, most of which were acquired on the open market in the past six months.

Kristian Ross, executive vice- president for Total Erickson, says any future purchases will “depend on market conditions.” He emphasizes the investment is a “vote of confidence” in Getty’s management and also its properties including the Tundra gold discovery north of Yellowknife, N.W.T. Noranda Exploration has proposed a $25- million underground exploration program there next year which would include a 1,500-ft vertical shaft.

Earlier this year, Bow Valley Industries announced plans to purchase 2,217,529 Getty shares for approximately $31.2 million, representing a 15.2% interest on a fully diluted basis. But the deal fell through. Two of the selling shareholders were Getty directors and one was its president and chief executive officer which raised more than a few eyebrows.

Ross also says the deal to purchase Ranchmen’s Resources should be completed by the June 30, 1988, deadline. Indeed, he predicts it “should happen before that.” Assuming it closes, Total Erickson will be the largest shareholder in Ranchmen’s with 44.2% of the voting shares, he claims, adding that Class A non-voting shareholders will be asked to exchange these for voting shares.

The company is waiting for the final feasibility on the Dome Mountain gold project north of Smithers, B.C., which should be available shortly, he predicts. Total Erickson will then have to decide whether to participate or not; the company would become operator if the decision is favorable. “There is an opportunity for production to begin there before the end of next year,” he says.

Total Erickson reported net earnings for the 9-month period ending Sept 30, of $2.7 million or 4 cents per share. Gold production was 67,440 oz from two operations, one at Cassiar, B.C., and the other (Mount Skukum) south of Whitehorse, Yukon.