Former Noranda exec to head Abitibi junior — Pezim shifts

Canada’s best-known mine financier is setting his sights on la belle province, particularly the Abitibi region where his geological team intends to apply some new concepts in the hope of making discoveries.

Murray Pezim recently announced plans to set up a publicly traded subsidiary of Prime Equities International (VSE) which will focus on Quebec. The emphasis will be on “the acquisition or discovery” of gold fields in Abitibi.

Pezim dismisses suggestions that the historic camp offers little potential for gold discoveries because of the cumulative work performed there by majors and juniors over many decades. “Hemlo was previously explored too,” he points out.

“There are some interesting new geological concepts behind this venture,” Pezim told The Northern Miner. “The team we’ve put together has been revisiting and rethinking the gold potential of this district. We now have some definite prospects in mind.”

Pezim has assembled a high-powered team for his Quebec venture. Heading the list is Andre Fortier, a former senior executive of the Noranda group for 30 years. Fortier will be president and chief executive officer of the Prime Equities subsidiary, to be listed on the Montreal Exchange.

Fortier, along with former Noranda exploration expert Walter Nash, has developed a strategy with several key elements. The first is the northwestern Quebec focus, known geologically as the Abitibi greenstone belt. “There’s some very solid work being done there,” Fortier said. The second key aspect is a certain threshold level of funding. “My view is that the typical junior is always short of funds,” Fortier said in an interview. “The statistics show that companies with a budget of $5 million a year represent only 25% of (the industry’s) exploration expenditures but account for 75% of the disoveries.

“We want to be one of them,” he said.

With that in mind Fortier hopes that with Pezim’s fund-raising abilities he can hire several geologists, provide each of them with an ample budget and let them develop projects in the Abitibi region.

Also on board Prime’s Quebec subsidiary will be Yves Marois, a partner at Mazarin Financial which specializes in corporate finance, mergers and acquisitions. The Quebec subsidiary will be funded initially by some of the proceeds Prime Equities expects to realize from a proposed $6-million rights offering. The company will establish a regional office in Val d’Or, in the heart of Abitibi.

John Ivany will be chief executive officer and Fortier will be its chief operating officer.

“Quebec is also attractive because of its flow-through rules and because it is the province most willing to support mining,” Pezim says. “But Prime Equities will continue looking at other opportunities, at home and abroad. We will be looking for opportunities in provinces other than Quebec. We are going to try and give Canada a shot once again.”