The TSX Venture Exchange made a modest gain of 12 points to 1,258.97 points for the period as global markets shrugged off their past selling ways and embraced a more positive outlook on the state of the world.
Investors’ turn to a more bullish mood came as fears of an economic catastrophe connected to the fiscal cliff abated somewhat, and good economic indicators came out of Germany. The buying mood spread into commodities, with oil up a dollar to US$88.28 per barrel, gold rising US$37 to US$1,751.40 per oz. and copper climbing 8¢ to US$3.53 per oz.
Probe Mines saw its share price rise 27¢ to $2.13 after selling its royalty interest in the Goldex gold mine near Val-d’Or, Que., to the former mine’s owner Agnico-Eagle Mines for $18 million. Probe will get $14 million when the deal closes, while an additional payment of $2.5 million will come in cash or shares if the mine is restarted. Probe’s former interest accounts for 17,320 oz. production, with another $1.5 million going to Probe if its portion of the royalty exceeds 20,320 oz. Agnico indefinitely suspended operations Goldex near the end of 2011 owing to water inflow and ground instability. Probe plans to use the capital to fund work at its Borden Lake gold project in northern Ontario.
Midway Gold arranged a financing and got a boost, with shares up 25¢ to $1.51 for the period. The movement came after the company announced it had arranged a US$70-million private placement financing for five-year, 8% convertible preferred shares at US$1.85 per share. The financing, provided by Hale Capital Partners, gets Midway closer to becoming Nevada’s next gold producer without incurring a hedge on its future gold production, or committing to any security over its assets. Proceeds from the private placement will go towards getting the heap-leach Pan project into production, and engineering studies to advance the Gold Rock project.
Despite saying that the recent rebel activity in the eastern part of the Democratic Republic of the Congo hadn’t affected its operations, Loncor Resources still saw its share price slide by 11¢ to 87¢. Loncor said exploration activities at its high-priority Ngayu project have been unaffected by the rising violence, as it sits 420 km northwest of the provincial capital city of Goma, which was overtaken by the M23 rebel group. Drilling continues as planned at Ngayu with two rigs, and will carry on until early December — when activities are normally halted over the holiday period. A recent U.N. report alleges that both Uganda and Rwanda are supporting the rebels, who plan to march towards the capital of Kinshasa.
TSX-V most active issues
|New Guinea Gld||NGG||12675||0.02||0.01||0.01||+||0.01|
|Plains Ck Phos||PCP||10734||0.02||0.01||0.02||+||0.01|
|True North Gem||TGX||4252||0.08||0.06||0.07||+||0.01|
|Alderon Iron O||ADV||1300||1.45||1.18||1.2||–||15.4|
TSX-V greatest percentage change
|New Guinea Gld||NGG||12675||0.02||0.01||0.01||+||100|
|Canada Rare Ea||CJC||1137||0.16||0.09||0.16||+||82.3|
TSX-V greatest value change
|Pac Booker Min||BKM||41882||4.5||+||0.6|
|GTA Res & Mng||GTA||1219440||0.17||–||0.1|
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