Vancouver Stock Exchange N.A. Metals management must decide

It’s becoming more and more difficult to comprehend which of two takeover offers management at North American Rare Metals is actually supporting. At this point it seems to be both. But the market has a clear idea and the company’s stock was a big winner over our report period, climbing 80 cents to $4.80. By presstime, however, it had slipped marginally to $4.75 in heavy volume.

Homestake Mining has increased its bid for North American to $5 per share, something analysts here believe is full value given current market conditions.

Yesterday, North American recommended acceptance of the improved Homestake offer. But the waters have since been muddied by Pezgold Resource, whose offer to take down two million shares at $4.50 and another two million at $4.75 was accepted earlier by North American management. In a news release issued today by Pezgold (on Prime Capital letterhead), Murray Pezim confirmed a meeting with North American management and claimed “they would recommend to North American shareholders to vote in favor of the Pezgold agreement.” An obvious consequence of this would be a major dilution of Homestake’s interest. North American has said the funds are required to develop its Golden Bear project. But with Homestake taking control, it is doubtful the U.S. major would have any problem funding the project internally.

In a telephone interview, a furious Murray Pezim suggested the matter could end up in court and he questioned the credibility of North American management. Pezim also recommended that Homestake give him a call in case they could work something out between them.

There were several other, albeit less exciting, happenings at presstime. Hallmark Resources, which operates a rock quarry in Arizona, was ahead 19 cents to $1.14 and Burmac Energy climbed 15 cents to 75 cents . At last report Burmac was negotiating the acquisition of an interest in Equity Preservation. Newly-listed Ambergat Explorations traded at $1.

Over our report period Don McLeod’s Newhawk Gold was ahead $1 to $5 and Candorado Mines shot up 95 cents to $5, also in low volume. Newhawk should be developing its Sulphurets project later this year. Candorado recently borrowed $1 million to develop its Hedley, B.C., tailings project.