Toronto Stock Exchange Pre-holiday slump makes for dreary market

Wednesday close, Dec 17

Investors were feeling anything but festive, judging by the dreary market action this past week. The widely followed composite 300 fell 14.59 pts on the week, including a 2.25 pts slump today for a close of 3,028.39. The gold and silver index was off 33.62 pts for a close of 5,198.38. The price of the yellow metal on the Montreal spot market was $392(US) bid $393(US) ask, a slight improvement over last week’s figures. Metals and minerals fared poorly with a loss of 16.72 pts for a close of 1,948.51.

Newly-listed Acadia Minerals Ventures tops this week’s most active list. With over 900,000 shares trading hands, the price reached $2.30, but closed at $1.75. This company owns and holds many interests in various properties in Nova Scotia, including a net smelter royalty interest (up to 3%) in the Beaver Dam property which Seabright Resources plans to be mining at a rate of 400 tons per day by May.

In today’s trading, Acadia was up a nickel to $1.80, while Seabright saw its A shares advance a quarter to $10.50.

Noranda is selling 1.3 million shares at $20 each through Gordon Capital. Tax credits included in the sale will increase proceeds to about $34 million. Noranda was down 50 cents to $20 on 819,500 shares.

Wilco Mining in which Deak International recently became the largest shareholder, has acquired an option on a 960-acre gold prospect at Wine Harbour, also in Nova Scotia. Wilco was trading strong all week with a 6 cents increase to close new-high at 34 cents . In today’s trading, Wilco gained 2 cents to 33 cents .

Agnico-Eagle Mines gained 13 cents on the week to reach $27.13. Today, shares were off 13 cents to $26.25. As mentioned in an earlier column, the company’s Telbel mine was facing dilution problems this fall, but those problems are now solved.

Meanwhile, associate company Dumagami Mines gained 13 cents on the week to $10.88, while today it lost 13 cents to $10.50. Dumagami and neighbour Lac Minerals are planning a joint hole right on the boundary which separates Dumagami’s property and Lac’s Bousquet property near Noranda, Que. The hole is expected to reach a depth of 3,500 ft.

Lac, meanwhile, is awaiting the decision from the Ontario court of appeal on the ownership of the Page-Williams Hemlo mine. Lac made a gain of 50 cents to $27.13 on the week. Today, it dipped 13 cents to close at $27. Courtroom opponent International Corona also closed at $27 today after a drop of 13 cents on a volume of 73,200.

Campbell Red Lake, which is bullish on its Detour Lake project, was off 13 cents on the week to $27.13. It lost a quarter today to close at $26.88 on a volume of 24,200. Dome Mines fared well on the week with a 13 cents gain to $10.63, with trading unchanged today.

American Barrick now has a 100% working interest in Nevada’s Goldstrike mine after reaching an agreement to buy Western States Minerals’ 50% interest in the property. For the other 50% interest, American Barrick has revised its original agreement with Pancana Minerals. Pancana shareholders may now choose to receive either 0.476 of a American Barrick common share or $9.50 for each share of Pancana.

American Barrick was off a quarter on the week to $20.25 with trading unchanged today. Pancana dropped 13 cents to $9.38 followed by another 13 cents dip on the day to close at $9.25.

Under this new arrangment, the Goldstrike property is still subject to a net smelter return and net profits royalty to Franco Nevada Mining. Franco gained 31 cents on the week to reach $2.95. In today’s trading a penny was lost for a close of $2.90.

And for United Siscoe which under a complex corporate restructuring will end up owning 30% of American Barrick the week was good with a 10 cents gain to $3.80. A nickel was added in today’s trading for a close of $3.85.

Pegasus Gold with two Nevada heap leach projects and its Montana Tunnels gold project is expected to produce well over 200,000 oz gold next year. The company new-highed this week at $15.25 after a gain of $2.38. Today 38 cents was lost for a close of $14.58.

The week was not kind to nickel producers Falconbridge Ltd. and Inco Ltd. Falconbridge dropped a quarter to new-low at $16.13. Trading was unchanged at $16.25 today. Inco which traded unchanged at $16.25 on the week closed at $16 today after losing a quarter.