Canada’s benchmark index gained during the week despite rising tensions in Ukraine, with the S&P/TSX Composite Index moving up 33 points to 14,533.57.
But the gold and diversified miners tumbled, with the S&P/TSX Global Gold Index falling 7 points to 187.23 and the S&P/TSX Capped Diversified Metals & Mining Index slumping 24 points to 861.99. The spot gold price added US$10.90 per oz. to close at US$1,303.80.
Nautilus Minerals was the week’s top percentage gainer, soaring 118% to 48¢ on 9 million shares traded. The boost came after the Toronto-based explorer reported that it has signed a new agreement with the government of Papua New Guinea that would allow for the resumption of development of its stalled Solwara 1 undersea copper–gold–silver project, in PNG’s territorial waters. Under that contract, the state could take an initial 15% interest in the project for US$7 million. It could boost its interest to 30% within a year, depending on certain conditions — the main one being that the government would secure US$113 million by July 2014, so that Nautilus can finish developing the project.
While the contract is a positive sign, Salman Partners analyst Raymond Goldie notes the “government participation and vessel completion are still open issues.” Goldie has reduced his target price to 75¢ from 95¢, but has a “speculative buy” on the stock.
Specialty metals-focused firm EMC Metals saw its shares rise 60% to 4¢ after closing a second tranche of subscriptions in a private placement, totalling 4.14 million shares priced at 2.5¢ apiece for gross proceeds of $103,500. The funds will go towards general working capital. The company’s management bought 52% of the placement’s total shares.
The Nevada-headquartered firm recently secured a 100% interest in a 34.7 sq. km land package that sits 24 km from its main Nyngan scandium project in New South Wales, Australia. EMC plans to explore the area for scandium and other metals.
Osisko Mining was the most actively traded stock, with 44.7 million shares changing hands to close the week down 2¢ at $7.98 per share. The junior gold producer released stellar intercepts from the first hole it drilled in the Odyssey North target, 4.5 km from its Canadian Malartic mill complex. The best intercept returned 110.2 metres of 2.85 grams gold per tonne, starting at a true depth of 1,150 metres and true thickness of 70 metres.
Goldcorp let its revised hostile offer for Osisko expire on April 22. This means Yamana Gold and Agnico Eagle Mines are closer than before in its joint $3.9-billion bid to acquire Osisko.
TSX most active issues
|Potash Cp Sask||POT||10558||39.51||38.35||39.42||+||0.97|
TSX greatest percentage change
|Hard Creek Ni||HNC||280||0.06||0.05||0.06||+||22.2|
|Forbes & Man C||FMC||159||0.09||0.06||0.08||–||25|
|Cerro Grande M||CEG||1295||0.03||0.02||0.02||–||20|
|Chalice Gold M||CXN||23||0.18||0.15||0.15||–||17.1|
|Silver Bear Rs||SBR||60||0.14||0.13||0.13||–||16.1|
TSX greatest value change
|Potash Cp Sask||POT||10558363||39.42||+||0.97|
|Horizns G Bear||HGD||1824500||13.77||–||1.12|