TSX Venture posts strong gains, June 6-10

The S&P/TSX Venture Composite Index jumped 3.2%, or 21.87 points, to a 715.59-point close, as gold prices climb towards four-week highs. Spot gold gained 2.4%, or US$30.04, to a US$1,274.24 per oz. close, as uncertainty mounts over whether Britain will exit the European Union and if the U.S. Federal Reserve will raise interest rates in June. Comex copper dropped 3.9% to US$2.03 per lb. copper despite positive Chinese trade data, which noted copper imports are up 22% this year, compared to the first five months last year.

Avino Silver & Gold Mines led the value-added category, gaining 73¢ to a $2.66-per-share close after declaring commercial production at its second mine on its Avino silver-gold-copper property near Durango, Mexico. Avino began mining the Avino open-pit and underground silver mine in 1974, but shut the operation in 2001 due to low silver prices and the closure of a key smelter. The production decision to resume the operation came after a 19-month advancement and test period, in which the company produced 944,165 oz. silver, 3,444 oz. gold and 6,094,603 lb. copper.

The company also operates the San Gonzalo underground silver mine, 2 km from the Avino mine, which produced 177,183 oz. silver in the first quarter of 2016.

Goldrock Mines gained 47¢ to a $1.10-per-share close on news that Fortuna Silver Mines intends to acquire all of Goldrock’s issued and outstanding shares for $1.08 per share, totalling $129 million. The deal represents an 85% premium based on Goldrock’s 20-day, volume-weighted trading price as of June 6. Goldrock’s principal asset is the Lindero open-pit, heap-leach gold project in Argentina’s Salta province. The company recently completed a feasibility study and has received the environmental permit for production. Fortuna expects to produce 7 million oz. silver and 428,000 oz. gold this year from its two underground mines: the San Jose silver-gold mine in Mexico and the Caylloma silver-gold mine in Peru.

Lithium explorer Spearmint Resources saw 39 million shares traded before closing up 1¢ to 5¢ per share, after announcing it would undertake a private placement of flow-through and non-flow-through units. The company intends to issue 6 million flow-through units and 10 million non-flow-through units at 5¢ per unit, for combined proceeds up to $800,000. The proceeds of the offering would be used for general working capital and advancing work programs at the company’s recently acquired Preissac and Whabouchi Lake lithium properties in Quebec.


Be the first to comment on "TSX Venture posts strong gains, June 6-10"

Leave a comment

Your email address will not be published.


By continuing to browse you agree to our use of cookies. To learn more, click more information

Dear user, please be aware that we use cookies to help users navigate our website content and to help us understand how we can improve the user experience. If you have ideas for how we can improve our services, we’d love to hear from you. Click here to email us. By continuing to browse you agree to our use of cookies. Please see our Privacy & Cookie Usage Policy to learn more.