Toronto Stock Exchange Metals play part in pushing market to new

Base metals are back, and no better sign of investor confidence in these issues could be found than the trading activity exhibited this week on the tse by four mining companies heavily involved in the exploration for, and production of, a wide variety of metals. Falconbridge Ltd., Inco Ltd., Noranda Inc. and Cominco Ltd. all shared in the frenzy surrounding rising base- metal prices, with each of the four trading close to a million shares or better. Falconbridge moved up $3.25 to $24.50, Inco closed up $2.62 to $25.25, Noranda climbed $4.25 to $32.50, and Cominco jumped $2 to $18.38.

The tse composite index recorded a new high today, rising 52.08 pts to 3,936.6 pts, the market finding renewed strength not only from improved commodity prices but from oil and gas stocks which are riding higher following opec’s recent decision to limit oil production to 16.6 million barrels per day. The gold and silver index today jumped 205.38 pts to 8,224.37 pts.

While general trading on the tse was down in June compared with the first five months of 1987, the exchange reports market activity during the first six months of this year was at record levels in terms of both value and share volume. Value traded reached $53.1 billion, well ahead of the previous record $36.1 billion traded during the same period in 1986; share trading jumped 40.9% to 3.8 billion shares compared with the previous record 2.7 billion shares set during the first half of 1986.

Announcing a new nickel mine to be in production by the end of 1988 in Manitoba was Hudson Bay Mining and Smelting, which closed up $1.75 to $11.38. Located about 50 km south of Flin Flon, the Namew Lake mine contains 2.44% nickel, 0.9% copper and small amounts of platinum group metals. Hudson Bay Mining (60% interest) and its partner in the project, Outukumpu Mines of Finland (40%), expect to spend about $68 million to develop the mine and plants to concentrate the ore.

Federal government approval has been given Total Erickson Resources for the takeover of Calgary-based Trans-Canada Resources and its subsidiary Camel Oil and Gas. Total Erickson, which is 53% owned by a French oil company and already has a 22% stake in Trans-Canada, closed up 60 cents to $5.50. Total Eri ckson has gold-mining projects in northern British Columbia and the Yukon.

Moving up 5 cents to 54 cents was Joutel Resources, which has successfully completed a private placement that raised approximately $4 million and involved about 9.3 million shares of the company. The bulk of the shares (units of shares and warrants were offered in the placement) were sold to European banking groups.

Sullivan Mines, the subject of a takeover bid by Ste Genevieve Resources, which trades on the Montreal Exchange, closed down 12 cents to $6.63. The latter company recently boosted its offer price from $6.625 per share to $7.25 per share; Ste Genevieve is after a minimum of 5 million and a maximum of 6 million common shares of Sullivan.

Completing the sale of 3 million common shares at 55 cents per share to several European institutional purchasers was Nova Beaucage Mines, which closed up 4 cents to 61 cents .

Camindex Mines of Toronto, which is considering changing its name and consolidating its shares on a one-for-four basis, announced it has arranged for a private placement of approximately $13.6 million of 3% convertible debentures. The company, whose shares closed down 4 cents to 69 cents , has a 51% interest in the Valdez Creek placer gold project in Alaska, a project in which it has been in default of various obligations. With the new financing and a $2 million(US) working capital facility, Camindex, expects to be able to meet all of its current obligations.

Closing down 16 cents to 95 cents was Orofino Resources, which has filed a preliminary prospectus for an issue of flow-through common shares and convertible subordinated notes convertible into common shares and convertible subordinated debentures. The junior gold-producing company intends to use the funds in part to acquire additional properties.