Pezim back in Corona fold

West-coast entrepreneur Murray Pezim and Galveston Resources have called off their legal action against International Corona Resources, Royex Gold Mining and related companies.

At the same time, Pezim has settled his differences with Ned Goodman, chairman of Royex, and Peter Steen, president of both Royex and Corona.

Royex has entered into a voting trust agreement with Pezim and Galveston whereby Royex has been granted voting rights over Corona shares owned by Pezim and companies associated with him, including Galveston.

Pezim stressed the need for teamwork, saying he has “come to realize that the interests of the shareholders would be maximized by everyone pulling together rather than continue the internal squabbling.”

Pezim and Galveston turned to the courts in part to contest membership of the Corona board.

Price of gold soars

Everybody’s favourite metal, gold, continues to seek new levels, with the price soaring this week to the US$440-to-$450-per-oz. range.

With a weakened American dollar and the announcement of higher U.S. trade deficit in February, bond and stock prices south of the border are taking a pounding. Gold, on the other hand, is looking better every day.

How high will the precious metal trade? Joe Ismial, technical analyst with Walwyn Stodgell Cochran Murray of Toronto, sees a lot more room for improvement.

“I made a forecast of $550 per oz. in 12 months’ time, and I’m going to stick with it,” he tells The Northern Miner.

Meanwhile, the spot price for platinum has risen to $600 per oz. and silver is approaching $6.90 per oz.

Noranda, Placer look at Dome Mines

Both Noranda and Placer Development say they are considering buying the shares of gold-producer Dome Mines held by Dome Petroleum, but neither appears to have ventured beyond the internal discussion stage.

Debt-plagued Dome Petroleum holds 20.8 million shares of Dome Mines worth $340 million. There have been at least three recent proposals, including one from TransCanada Pipe Lines, to buy the assets of the oil company. Dome Mines is among those assets.

J.M. McConville, vice-president corporate affairs at Vancouver-based Placer Development, says there is substance to the rumours.

“We’ve had some discussions,” he says,” but nothing specific.”

Concern over fate of Dome Petroleum

As Dome Petroleum, one of Canada’s leading oil and gas complexes, teeters on the edge of bankruptcy, it’s little wonder that politicians are now getting in on the act.

News that Amoco had gained the upper hand in a bidding war to take over the company prompted New Democratic Party leader Ed Broadbent to say this is “a dark day for Canada.”

Most of us would prefer to see ownership of this country’s oil and gas industry in Canadian hands, such as TransCanada Pipelines, rather than Amoco. Then again, Dome itself is largely U.S.-owned, and after all, is Amoco such a villain? It began operating in our oil patches in 1948 and since that time has built a reputation as a solid and successful performer.

There are, of course, political implications galore in this affair. For example, the Americans have made unfettered investment one of their top priorities in the crucial and touchy trade negotiations now being pushed so hard by Prime Minister Mulroney. If he were to block this takeover, or sweeten the TransCanada offer with Canadian money, those free trade talks would likely be doomed.

Mr. Broadbent, we fear, would pour untold millions, even billions, to get that Dome empire into Canadian hands. And that’s money Ottawa definitely does not have.

Manifest ‘lunacy’

Imagine, if you will, staking a mining claim or claims on one of the planets or on the moon.

Sounds well-nigh impossible, but evidently not. American Thomas Budnick, seized by the notion that his country must expand its horizons even further, has filed mining claims in a Spokane, Wash., registry office, for 10 million acres on Mars, its two moons and the asteroid belt between that planet and Jupiter.

Those who scoff are “hind-sighters and kibitzers,” says the 39-year-old native of Holyoke, Mass., adding: “I’m doing what I can to continue America’s manifest destiny.”

Trouble is, as the people in the Washington registry office noted, there is still a little doubt as to who owns Mars or the moon, and Mr. Budnick might have some trouble securing mining rights on either.