Toronto Stock Exchange (January 27, 1992)

Tri-Origin Exploration, a new junior exploration company backed by former LAC Minerals geologists Dennis Sheehan and Robert Valliant, was cleared for takeoff during the week ended Jan. 21.

An initial public offering of 1.7 million units consisting of one 85 cents share and one half of a series A warrant has been taken up at 90 cents per unit, according to Toronto agent Research Capital.

Initial proceeds of $1.5 million are earmarked for base metals exploration in New South Wales, Australia, where a 2-stage program including drilling on the Lewis Ponds property is planned. Tri-Origin has four properties in Ontario. Trading at $1.05, Tri-Origin entered the public arena in a week when falling interest rates and a stronger gold price helped to boost the shares of several mining issues. American Barrick Resources, Franco-Nevada and Royal Oak Mines all reached new highs.

Today, Jan. 22, the yellow metal closed at US$356.75 per oz. in London after advancing $1.25 during the report period. However, after back-to-back declines sparked by profit-taking, Toronto’s composite 300 index regained its recent momentum today. The index added 18.35 points to close at 3638.79 after 27.8 million shares valued at $338.9 million had changed hands. However, Barrick slipped back to $33.75 after peaking at $34.13. Franco-Nevada also lost ground. Giving up 88 cents, it closed at $26.13. Royal Oak was down 8 cents to $2.09. Teck’s B shares were also off 13 cents while the A shares were unchanged.

Breakwater Resources was this week’s volume leader after entering into discussions with Banque IndoSuez to restructure the terms and conditions of a Swiss franc bond issue by Breakwater in 1987. Trading almost two million shares, Breakwater closed at 33 cents today after gaining 1 cents. Placer Dome, which ranked second on the volume leagues, is talking once again to Corona about the possibility of funding part of the capital cost of developing the Eskay Creek gold discovery in British Columbia. Placer Dome has given Corona until Jan. 31 to decide whether to issue to Placer Dome $100-million worth of debentures. Placer was even today at $12.25 while Corona added 13 cents.

Other active stocks included Aber Resources, which holds ground close to the Dia Met Minerals and BHP-Utah Mines diamond play, 200 miles northeast of Yellowknife, N.W.T. Aber posted a 38 cents gain during the report period after trading over 1.2 million shares. Claude Resources shot up to $1.40 from $1.05 last week on an announcement that the Saskatchewan company is about to resume surface drilling at its Seabee gold mine.

Betting on an economic recovery and hopes for a spike in the price of nickel sparked shares of Inco, which added 50 cents today before closing at $38.50. The stock is still well short of its $43.88 high point. Similar sentiment with regard to zinc prices drove Curragh Resources to $3.50, compared with a recent low of $3 as Chairman Clifford Frame continued with his rescue act. Even today at $11.25, Metall Mining is tipped to emerge as Curragh’s new partner at the Stronsay zinc-lead project in British Columbia. The A shares of Dickenson Mines were also unchanged at $4.45 as the company mulls over a proposal to introduce bioleaching technology at its Arthur White gold mine near Red Lake, Ont. Designed to cut costs, the technique is also being tested for introduction by Newmont at its Nevada mines in 1994. In other news, Euro-Nevada Mining announced plans this week to issue 1.5 million special warrants at $18.75 each. Subject to regulatory approval, each special warrant is convertible into a common share and one half warrant to purchase an additional common share exercisable for three years at $21.50 per share. Euro-Nevada closed at $18 today, down 13 cents.