Toronto Stock Exchange Activity in B.C. keeps western companies

Stock market activity took on a decidedly western theme during the week ended April 3, as share prices of a number of Vancouver companies felt the effects of acquisition rumors and other events. It was a week when workers walked off the job at the Highland Valley Copper operation before the British Columbia government intervened by ordering them to return to work. As shareholders of Prime Resources and Calpine Resources approved the amalgamation of both companies, Prime Chairman Murray Pezim was strongly denying allegations that he engaged in insider trading activity.

But those events were overshadowed by the meltdown in Japan where the Nikkei stock average plunged 1,978.38 points to post the second worst collapse in the history of the Tokyo Stock Exchange.

Triggered by news that some of Japan’s largest corporations were selling huge equity positions into the market to limit the erosion of their asset values, the correction has caused nervousness in North American equity markets.

Today, April 4, the composite 300 index fell by 13.17 points to close at 3634.95. The gold and silver index moved up 8.6 points closing at 6855.97 even though the yellow metal edged down slightly to US$374.25 per oz. on the second London fix.

Cominco lost some ground earlier in the week along with copper prices after the British Columbia government ordered 1,000 striking workers at the Highland Valley copper mine to return to work.

However, it rebounded to post a 12 cents increase, closing at $26, in response to the news of a landslide at the 374,000-tonne-per-year El Teniente mine in Chile. As El Teniente is one of the world’s largest copper producers, copper futures moved ahead on the New York Commodity Exchange and the metal up US3.85 cents

Among the other metal producers, Inco gave up 62 cents to end the day at $30.38 while Noranda was down 25 cents at $21.88.

Shares of Pine Point Mines gained $4.75 earlier in the week, closing at $48.75 after Teck said it was offering $50 for the Pine Point shares it doesn’t already own. Teck’s affiliate Cominco already owns 50% of Pine Point’s outstanding shares. Pine Point in turn owns 45% of Cominco’s Polaris lead-zinc mine. As a result, Pine Point gained another 25 cents to close at $48.50.

Teck and Noranda affiliate Hemlo Gold are two of the companies named in a lawsuit launched by four prospectors who claim that the property hosting the Golden Giant gold mine wasn’t staked properly. Operated by Hemlo Gold, the mine produced 378,000 oz. last year. But perhaps because a similar lawsuit was launched two years ago by Toronto stock promoter Charlie Stuart, shares of Hemlo Gold closed up 12 cents at $14.50. At that time Stuart said he would deal the claims to Alberta-listed International Baslen, but Baslen directors eventually moved to disassociate themselves from the veteran promoter.

The Breakwater Resources issue was also active, following news that the company is going ahead with plans to acquire the Caribou lead-zine mine near Bathurst, N.B. The transaction is scheduled to be completed through the amalgamation of a Breakwater subsidiary with a unit of Bathurst Base Metals, a company controlled by British financier Howard Miller. After suffering from a lack of sufficient development, the mine was shut down last July.

To keep the 2,000-ton-per-day mill running, Breakwater may sink a shaft while attempting to increase the Caribou production rate.

Breakwater’s biggest shareholder, Toronto-based Corona, was also active on the acquisition front. Through a subsidiary, Corona is planning to increase its exposure to oil by taking down an option to purchase a 38% stake in Voyager Energy which is negotiating a possible merger with Poco Petroleums. Poco is already 49% owned by Corona.

Back in Ontario, a record month at LAC Minerals’ Macassa gold mine near Kirkland Lake had no effect on the company’s share price. It remained steady at $13.75 after losing 38 cents earlier in the week.

The mine, which usually produces around 9,000 oz., churned out 12,353 oz. of the yellow metal last month. It helped, of course, that head grades were running at 0.8 to 0.9 oz. gold per ton.

Still on the gold front, Belmoral Mines Chairman Kenneth Dalton is reported to be talking with a number of possible suitors in a bid to stave off future bankruptcy. As Aur Resources has already backed out of a proposal to purchase as much as 47% of Belmoral’s shares, insiders think a complete takeover is inevitable. There was little change in the Belmoral issue which closed at 40 cents.

Asamera Minerals was also quiet as it awaits the bid that Rouyn- Noranda, Que.-based Audrey Resources says it is preparing. Audrey President Guy Hebert says it is attracted by the cash flow generated by Asamera’s 51% owned Cannon mine in Washington State.