Aur executive cashes in on Val d’Or metal find

One of the ways in which mining companies attempt to motivate and reward their key employees is to grant them options to purchase a specific number of shares at a specified price.

Typically, if the company is successful and the price of its shares advances beyond the option price, employees can reap the rewards generated through their efforts by exercising their right to buy the shares and then selling them at a higher price.

Just how much mining executives can benefit from this arrangement was demonstrated recently by a transaction involving Aur Resources (TSE) Vice-President Howard Stockford.

According to a recent edition of the Ontario Securities Commission’s Insider Trading Bulletin, Stockford exercised his right to buy 23,500 shares at $4.25 before selling them for $12.875-13.375 to hold 10,800.

As all mining observers are aware, Stockford was simply cashing in on Aur’s base metal discovery at Val d’Or, Que., which has driven the price of Aur shares up to $14 from $2.70 in June.

Other mining executives who were active in the stock market recently include:

Agnico-Eagle Mines (TSE) President Paul Penna who exercised an option to buy 510,000 shares at $9.13 to hold 590,252. The transaction was executed the same day Penna sold 451,759 shares for $10.63.

HSK Minerals (TSE) treasurer Roderick Chisholm exercised an option to purchase 100,000 shares for 64 cents to hold 100,000. HSK recently merged with Queenston Gold Mines on the basis of 0.434 shares of the amalgamated company for one share of HSK.

Northfield Minerals (ASE) director Douglas Hooper exercised an option to purchase 25,000 shares for 40 cents . Black Hawk Mining (TSE) President Garry H ughes bought 5,000 shares for $1.05 to hold 113,000.

Cassiar Mining (TSE) Development Vice-President Marcel De Rouin sold 2,500 shares for $5.75 to hold 500.

Cathedral Gold (TSE) President Pierre Lebel sold 10,000 shares for $1.90 to hold 30,000.

Prime Explorations (VSE) President Chet Idziszek exercised an option to purchase 17,200 Corona (TSE) Class A shares for $7.651. He then sold those shares for $10 to hold none. Idziszek also exercised an option to purchase 8,600 Class B shares for $7.651. He then sold those shares for $10.375 to hold none.

Corona Vice-President and treasurer Anthony Walsh sold 8,995 warrants for 26 cents to hold none.

Deak Resources (TSE) President Frank Smeenk bought 4,000 shares for $1.20-1.18 to hold 25,040.

Euro-Nevada Mining (TSE) treasurer Paul Smith sold 2,000 shares for $9 to hold 6,300.

Glen Auden Resources (TSE) Vice-President Robert Middleton bought 6,000 shares for 17 cents to hold 411,071.

Goldbelt Mines (VSE) director Martin Dorey sold 65,500 shares for between 70 cents and $1.12 to hold none.

Golden Knight Resources (TSE) Vice-Chairman Norman Keevil sold 15,000 shares for $10.50-11.25 to hold 5,000.

Ican Minerals (TSE) Secretary Archibald Nesbitt bought 32,000 shares for 40 cents to hold 804,902.

Kingswood Explorations (ASE) Vice-President Milvin Brooks sold 73,000 shares for 38 cents to hold 242,927. President Wayne O’Connor sold 50,000 shares for 40 cents to hold 14,500.

McNellen Resources (TSE) director John McAdam bought 1,000 shares for $1.20 to hold 1,000.

Minven Gold (TSE) Vice-President Landon Clay bought 40,700 shares for $2.90-3.20 to hold 507,632.

Platinova Resources (TSE) President Robert Gannicott sold 80,000 shares for $2.10 to hold 4,500,639.

Queenston Gold Mines (TSE) Vice-President Roderick Chisholm sold 1,000 shares for $1.75 to hold 200.

Tarzan Gold (ASE) Treasurer Robert Weber bought 65,000 shares for 12 cents to hold 75,000.