Toronto Stock Exchange Golds shine as skittish bull pulls market

Once again golds set the market on its ear with a rise that seemed to defy gravity itself. Spurred on by worries of a sinking U.S. dollar, bullion prices soared to a high of over $420(US) an oz while the gold and silver index blasted past the 8,000 mark to peak at an all time high of 8,342.87. This index has since settled with a gentle drop at 8,163.50 with the price of the yellow metal on the Montreal spot market of $417(US) bid $418(US) ask.

The widely followed composite 300 likewise pulled back due to nervousness over higher interest rates and inflation. A drop of 86.32 pts was posted by the 300 to close at 3,742.22 pts. Metals and minerals were slow this week with a 77.96 pt drop to 2,596.53 while oil slipped down 93.06 pts to 3,917.59.

In what is being viewed by many market watchers as Pez repellent, Royex Gold Mining has made an offer that could increase its stake in International Corona to 50% from 38%. Royex’s offer is for 4 million Corona common shares and all of the outstanding $9.50 Corona share purchase warrants expiring this Aug. 31. Corona, in turn, owns 49% of Royex. (All the details of the offer are in the front page story).

The Pez is obviously Murray Pezim who with his flagship company Galveston Resources is involved in a court action against Corona. Mr Pezim is asking that the court remove five Corona directors and appoint two of his associates who were recently dropped, reverse Corona’s purchase of a control block of shares in Lacana Mining and prohibit management from voting Corona shares held by subsidiaries.

In trading, Corona won a big $5 to $45.13, while Royex was up $1.13 to $6.13. Lacana closes at $16.50 after a 75 cents gain. And Galveston, whose shares were recently subdivided on a 3 for 1 basis, closed at $8.25 after a gain of $1.63.

Corona is still waiting to hear from the Ontario Court of Appeal on the ownership of the Hemlo Page-Williams mine. Lac Minerals closes the week at an even $40 after a 50 cents advance.

Campbell Red Lake was up $1.13 to $36.63. It has posted a $29.3 million profit for the recent fiscal year, up from $25.8 million posted a year earlier. Parent Dome Mines added 63 cents to close at $16.38. Dome’s profit for 1986 has zoomed up to $15.3 million, a marked difference from the $2.1 million a year earlier.

Canamax Resources made market waves this week and new-highed at $11 with a close today of $10.75. Canamax with partner Pacific Trans Ocean have approved a production decision on their Ketza River joint venture gold project in the Yukon. The decision is contingent upon approval of a water licence and the arrangement of financing. Pacific Trans closes at $3.55 , after a drop of 15 cents .

The world’s largest heap leach mine has plans to double in size. Round Mountain mine in Nevada will expand to an output of 300,000 oz a year by the of 1988. This expansion will mean more gold for 50% owner Echo Bay Mines which already is expecting to produce some 480,000 oz of the yellow metal this year. Echo Bay has also announced the discovery of a new gold deposit in the Cove area near its McCoy gold mine in Lander Cty, Nevada. The company closes the week at $52 after a win of $2.75.

Hydra Explorations was hopping this week with a 90 cents leap to $2.35. Control of the company is passing into the hands of Vancouver-listed Neptune Resources headed by Peggy Witte. Neptune is acquiring 750,000 shares at a price of $1.60 per share and will assume managerial responsibility of the company, including the Johnsby Colomac gold project in the N.W.T. Here Neptune currently has a $5.5 million development program under way.

Newly listed on the tse today is Syngold Exploration headed by Barry Simmons. Among its projects is a 25% interest in the Owl Creek West property in the Timmins, Ont., camp; a right to earn 35% in the Deka property near Rouyn-Noranada and a 100% interest in the Trudelle property also in Quebec. Syngold closes at $3.80 after a 10 cents drop.

A new member has joined the tse. Vancouver based investment dealer/stock brokerage Canarim Investment Corp. was admitted to membership today and will be officially opened for business from its top floor offices at the exchange on May 4. Bill Cara, regional vice president for Ontario and branch manager tells us Canarim will have a staff of about 30 but will expand within a year to about 65 people. The company’s focus is on corporate services on junior underwriting.