Twenty-Five Years Ago / July 1978

PQ mum on Asbestos takeover

Quebec government spokesmen are silent on reports that a New York investment firm hired by the province to evaluate the assets of Asbestos Corp. has set a price of US$60 a share on the company’s common stock.

“We have no comment,” said a spokesman for Quebec Finance Minister Jacques Parizeau, when asked about the reports. The study by the investment firm Kidder, Peabody and Co. is being handled by Parizeau’s department.

Recently, there were suggestions by provincial government sources that Quebec would not offer more than US$40 per share for the 1.5 million shares, representing 54.6% control held by General Dynamics Corp. of St. Louis, Miss.

Junior exchange needed: study

An independent study produced for the Ontario Ministry of Natural Resources has recommended that a new exchange be established for junior mining securities, either in association with the Toronto Stock Exchange or as a totally independent computerized trading market.

In addition to the proposal for a new junior exchange, the study recommended that the artificial separation of the promoter and the underwriter be removed; that the Ontario Securities Commission initiate a public education program on the risks and rewards of speculative equity investment; and that the underwriting price be related to market prices once a trading market has evolved.

Gold reaches new high

We are experiencing one of the most chaotic periods in modern monetary history, with the U.S. dollar virtually collapsing against the Japanese yen and the price of gold shooting to an all-time high of US$207.50 per oz.

That’s exactly US$10 above the historic high established on Dec. 30, 1974.

Profit-taking eventually pared the yellow metal’s price, but at presstime it was still well above the US$200-per-oz. level.

With the Canadian dollar stumbling around a 3-month low, these developments mean Canadian gold producers could be receiving almost $228 per oz. with the metal at US$200.

Denison boosts stake in Freeport

Denison Mines has been quietly increasing its interest in U.S.-based Freeport Minerals Co. The company is a diversified natural resources and energy entity, and the world’s largest producer of sulphur.

Denison’s interest in Freeport now exceeds 6.5%, requiring disclosure with the U.S. Securities Exchange Commission.

Saskatchewan approves Cluff Lake

Following through on its commitment to permit Saskatchewan uranium mining developments to proceed at a “planned and measured pace,” the provincial government has indicated it will approve the Amok project at Cluff Lake.

The project is now expected to start up in mid-1980 at an initial annual rate of 2.6 million lbs. uranium oxide, eventually rising to 40 million lbs.