Gulf Canada Resources has taken the “for sale” sign off the U.S. and Canadian mineral assets of subsidiary Asamera Minerals (TSE). At Asamera’s recent annual meeting in Calgary, Chairman Chuck Shultz said the assets would remain off the selling block until gold prices recover and the market places a higher valuation on the assets.
The decision was taken just two weeks after Gulf Canada rejected a bid by Audrey Resources (TSE), which is rumored to have fallen well below Gulf’s $115-million- plus asking price. Audrey was attracted by the cash flow possibilities of Asamera’s 51% owned Cannon gold mine in Washington.
In January, Corona (TSE) also elected not to go ahead with the planned acquisition of Asamera after discovering it would be exposed to potential tax liabilities stemming from the sale.
As part of an effort to enhance the value of Asamera, the company has named Russell Wood as successor to retiring President and chief executive officer Bill Cooper.
Wood was president and CEO of Michigan-based Copper Range Co. before the latter was purchased by Metall Mining (TSE) of Toronto.
Meanwhile, Asamera reported net income for the three months ended March 31 of US$397,000 or US2 cents per share compared to US$970,000 or US4 cents per share at the same time last year. First-quarter revenues also dropped slightly to US$8.6 million from US$8.8 million in the equivalent 1989 quarter.
Net metal shipments from the Cannon, and Gooseberry mines (in Nevada) amounted to 18,567 oz. gold and 124,681 oz. silver in the first quarter compared with 19,630 oz. gold and 106,723 oz. silver at the same time last year. Asamera Minerals (TSE) $000s except per-share items* Quarter ended Mar. 31 1990 1989 Revenue $8,573 $8,814 Net earnings 397 970
per share 0.02 0.04 *US dollars
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