STOCK MARKETS — Adrian financing provides funds for Panama

The Vancouver Stock Exchange is continuing to attract negative press, the most recent being an unflattering article in Barrons. The fallout, coupled with gold’s renewed slide toward questionable support at the US$330-per-oz. level, lent little support to Western markets during the report period ended Oct. 28.

The VSE composite index edged up less than three points to remain near its low for the year at the 554-level. The index has experienced a steady slide from its high of 678.89 in February.

Extending a string of losses from its high of 575.92 in mid-September, the resource index finished the week down a further 18 points to close at 528.99. The Alberta Stock Exchange composite index closed down 3.8 points at 867.76. Dia Met Minerals effectively distanced itself from the VSE with its recent acceptance for listing on The Toronto Stock Exchange. The issue finished up $1.12 at $19.50.

Adrian Resources was one of the most active issues, trading more than 1.7 million shares to finish down 2 cents at 74 cents. Prime Equities, controlling shareholder of Adrian, sold a total of 1.55 million shares of the company. In connection with the sale, Prime agreed to purchase 1.55 million flow-through units of Adrian at 70 cents each. The placement includes warrants to purchase an additional 775,000 shares at 70 cents each for one year.

Adrian plans to use the proceeds from the placement to fund the second phase of exploration at the Cerro Petaquilla copper-gold project in Panama. The company can earn up to a 40% interest in the project from Minnova. Prime closed down 30 cents at $2.

A further phase of drilling recently got under way at the Robertson property in the southwestern U.S. owned by Coral Gold and under option to Amax Gold. The drilling will once again concentrate on the 39A and Porphyry zones in the middle of the property. Market watchers are keen to see exploration move to the Robertson claims just north of Placer Dome’s giant Pipeline gold discovery on the Cortez joint venture in Crescent Valley, Nev. Amax has not given Coral any indication when that might happen. Coral slipped 4 cents to 54 cents.

New Canamin Resources was unable to hold its ground after releasing additional assay results from drilling on its Huckleberry property in central British Columbia. The drilling results included the best intersection drilled to date on the property, with hole 92-26 returning 290 ft. grading 1.05% copper. The issue lost 7 cents on the week, finishing at $1.20. Regulatory approval for a US$5-million private placement in Seine River Resources was recently received and the company expects to have the funds in hand shortly. Seine plans to use the proceeds of the issue for potential resource acquisitions as well as bringing its Plumas underground placer operation into production. Seine finished up 13 cents at $2.23. Estimated reserves at the Polaris-Taku mine were recently upgraded by Suntac Minerals and its affiliate Canarc Resource. Probable and possible reserves jumped 28% to 2.85 million tons grading 0.43 oz. gold per ton. Suntac is earning a 60% interest in the property from ASE-listed Rembrandt Gold Mines. Canarc, the controlling shareholder of both Rembrandt and Suntac, is in the process of mailing a takeover offer for the two companies on the basis of one Canarc share of every 3.5 shares held. Canarc finished down 6 cents at $1.12 while Suntac and Rembrandt lost 2 cents to the 28 cents level. Quinto Resources received a boost, jumping 18 cents to 70 cents. The company recently entered a financial agreement with an American investment syndicate to provide $4 million in funding for Quinto’s graphite gold property near Lumby, B.C.