MINING MARKETS & INVESTMENT NEWS — QUERY — Juniors out of action

I hold common shares of Orecan Explorations and, having done some research, have found little information about the company. I would also like to know what happened to Canreos Minerals, and where this company stands now.

J.N. Huff,

Chelmsford, Ont.

The only record we can find of Orecan Explorations is in a master listing of securities from 1991. It was identified as a security traded in the U.S. and never had a Canadian stock market listing. The listing did not show a CUSIP security-transfer number, which could mean that it never did trade publicly, though that is not certain; it may trade in the U.S. on the “pink sheet” dealer market. It is possible a broker handling U.S. stocks could tell you.

However little we know about Orecan Exploration, we do know a number of things it is not. It is not traded on any of the U.S. exchanges (New York, Amex or Nasdaq) or on the OTC Bulletin Board; it is not a reporting issuer in Canada or the U.S.; and the Canadian Depository for Securities has no record of it.

It is also not Orecan Mines or Orecan Oils. Orecan Mines, based in British Columbia, went into bankruptcy in November of 1966, and had its charter cancelled in September 1974. It never carried the name Orecan Explorations.

Oil explorer Orecan Oils was renamed American Eagle Petroleums in 1968, long before you got the shares. American Eagle was absorbed into CS Resources in 1993. In turn, CS was bought by PanCanadian Petroleum for $16 a share in a bidding war with Gulf Canada Resources. Gulf declined to bid past $14.65 and PanCanadian (which had entered as the CS board’s white knight) declared victory on July 14, 1997.

Canreos Minerals started up in 1980 and held a land package adjoining the Renabie mine in the Missanabie area of northern Ontario. Its interest in the block was partly direct, and partly held through an option dealt to it by Braminco Mines. It also held other ground around Missanabie and in the Kirkland Lake camp. Belmoral Mines, an occasional gold producer in the Val d’Or camp, had a 39% interest in the company.

The 1989 field season blew the Canreos budget, leaving it with a working capital deficiency of $1,000. Those were difficult times for junior explorers — the days of monster flow-through financings had recently ended — and Canreos was unable to raise any more money.

To make matters worse, Belmoral was facing insolvency and sold off a number of its assets, including its stake in Canreos. The Vancouver Stock Exchange delisted Canreos in March 1991, at which time the shares were trading at 1 cents.

Canreos Minerals’ corporate charter was never cancelled, so it is possible, in theory, that the corporate shell may be revived.