Insider Trading Aur executives cash in options

No longer the thrill-a-month drill play that kept investors on tenterhooks for most of 1989, the Louvicourt Twp. massive sulphide project east of Val d’Or, Que., has entered the critical mine development stage. But even though shares of operator and part owner Aur Resources (TSE) have fallen recently to $4.05 from a pre-stock split high of $14, the company’s leading executives are still cashing in on the copper-rich discovery.

According to the Ontario Securities Commission OSC Bulletin, vice-president Howard Stockford recently exercised an option on 50,000 shares at $2.125, which he immediately sold for $3.75-3.80 to hold 23,700 directly.

Secretary Peter McCarter also sold 23,000 shares for $4-4.05 to hold 9,315. Director Leo Thibodeau sold 72,500 shares for $3.80 to hold 48,334.

Aur, which owns 55% of the Louvicourt project, is developing it in a joint venture with partner and 45% owner Societe Miniere Louvem (TSE). Having outlined an estimated 29 million tons of grade 4.3% copper, 1.8% zinc, 0.74 oz. silver and 0.03 oz. gold per ton, Aur is immersed in mine planning.

Teck, Noranda and St. Genevieve Resources are also involved in the project by virtue of their respective equity holdings in Aur and Louvem. Teck owns 21% of Aur, while Noranda and St. Genevieve own 27.6% and 44% of Louvem, respectively.

Other mining insiders who were active in the stock market recently include: Aber Resources (TSE) officer Frank Bradley, who bought 19,000 shares for between 55-75 cents to hold 19,000; Dayton Developments (TSE) director John Jackson, who was granted the right to purchase 45,000 options for $1.92 to hold 60,000 options.

Director Barney Magnusson can also purchase 25,000 options for an undisclosed price to hold 95,000; Freewest Resources (TSE) secretary Michael Price exercised an option to purchase 20,000 shares for $1.65. He then sold 10,000 for $3.30 to hold 14,000; Greenstone Resources (TSE) director Neil Raymond was granted the right to purchase 60,000 options for $2 to hold 160,000 options; Madeleine Mines (TSE) shareholder George Kaiser, who beneficially owns more than 10% of the company’s issued shares, bought 30,700 shares for $4.10-5.35 to hold 1.4 million; Noranda Inc. (TSE) affiliate director Al Dillabough bought 1,464 shares under a plan for $20.84-24.125 to hold 1,603. Affiliate director Stan Smyth bought 897 shares under a plan for $20.504; Platinova Resources (TSE) affiliate Goldcorp Investments, which beneficially owns more than 10% of the former’s shares, bought 34,500 shares for $1.40 to hold 3.4 million; Sherritt Gordon (TSE) affiliate the Ontario Municipal Employees Retirement Board, which owns more than 10% of Sherritt’s stock, bought 1.3 million shares for $7.35 to hold 2.8 million; Teck Corp. (TSE) director Brian Keevil sold 5,100 Class B voting shares for $22.38 indirectly through Obabika Investments Ltd. to hold 94,900.