TSX Venture loses ground, Nov. 21-25

The S&P/TSX Venture Composite Index lost 1.6%, or 12.09 points, en route to a 734.58-point weekly close. December contracts for gold bullion dropped US$27.75 before closing near a nine-month low at US$1,178.20 per ounce. Meanwhile, March contracts for copper jumped 8.2% before finishing at US$2.67 per pound. The red metal has surged US46¢ over the past month. January contracts for West Texas Intermediate crude oil gained US37¢ en route to a US$46.06-per-barrel close.

MBAC Fertilizer topped the value-added column after news of a non-brokered private placement it said would fund the “recommissioning and ramp-up of [the Itafos Arraias] phosphate operation in central Brazil,” near the border of Goias and Tocantins states. The company gained 99¢ on 62,000 shares traded before closing at $2.50 per share.

The $13.4-million financing will involve issuing 5.37 million shares priced at $2.50 to shareholder Zaff LLC, which owns 96.3% of the company’s outstanding equity. MBAC unveiled a creditor’s arrangement in October that resulted in Zaff acquiring the majority position. As part of the restructuring, the company intends to restart Itafos operations in first-quarter 2017.

Mexico-focused producer Avino Silver and Gold Mines announced its own bought-deal offering, but the market was less than enthusiastic about the term sheet. The company led the value-lost category after dropping 71¢ on 809,000 shares traded, before finishing at $1.81 per share. Avino proposed a US$10-million financing, wherein it will issue 6.37 million units at $1.57 each. The units consist of one share and one purchase warrant exercisable at $2 for 36 months. The company said the net proceeds would advance exploration and development at the Avino mine in Mexico, as well as the Bralorne property in British Columbia. Avino reported aggregate, third-quarter silver equivalent production of 650,000 oz. from its San Gonzalo and Avino operations.

Saint Jean Carbon had the highest trading after joining the energy storage race that fuels heavy investment in the lithium industry. The company saw over 20 million shares traded, and gained 2¢ en route to a 7¢-per-share close.

On Nov. 24, Saint Jean announced it hopes to build a “high-powered, full-scale lithium-ion battery with recycled and upcycling material from an electric car power pack and the upcycled anode material.” The company said its technology could lead to reusable raw materials that lower the demand for continued mining. The company and its battery-manufacturing partner anticipate the project will take six months to complete.


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