TSX dips, June 24-28: Continental Gold, First Quantum, Northern Dynasty

The S&P/TSX Composite Index fell 0.87% to 16,382.20. Metal indexes moved higher with the S&P/TSX Global Mining Index up 1.30% at 79.44, the S&P/TSX Global Base Metals Index up 1.27% to 114.27, and the S&P/TSX Global Gold Index up 1.14% to 220.50. Spot gold finished at US$1,408.90 per oz., up US$9.90 per oz. or 0.71%.

Continental Gold advanced $0.51 to $3.79 per share. The company closed a previously announced US$100 million gold and silver stream transaction with Triple Flag Mining Finance. The funds will be used to build and commission its Buritica project in Antioquia, Colombia, and for general and working capital purposes. Buritica, one of the world’s largest and highest grade gold projects, is expected to pour first gold during the first half of 2020. In other news, Eric Sprott agreed to acquire 10.65 million common shares of the company at a price of $3.10 per share, about a 2.9% discount to the stock’s five-day volume-weighted average price. The non-brokered private placement will raise about US$25 million and will be used for general working capital and corporate purposes.

First Quantum Minerals announced that its first shipment of copper concentrate from Cobre Panama has left the port, marking a significant milestone for the company. Cobre Panama, in the Republic of Panama’s Colon province, started production earlier this year and remains on track to produce between 140,000-175,000 tonnes of copper in 2019, with more than 80% of production expected in the second half of the year. The mine is expected to ramp up to over 300,000 tonnes of annual copper production over the next few years. First Quantum shares jumped $0.49 to $12.44 apiece.

Shares of Northern Dynasty Minerals gained 32% to $0.79. The company reported that the U.S. Environmental Protection Agency will re-start the process to withdraw a proposed determination initiated under the Obama Administration in 2014 that sought to veto Northern Dynasty’s Pebble project in Alaska. The proposed determination under Section 404 of the Clean Water Act was “an unprecedented attempt to pre-emptively veto southwest Alaska’s Pebble project before it received an objective, scientific regulatory review under the National Environmental Policy (Act) (NEPA),” Northern Dynasty stated in its June 26 news release. The company says the environmental impact statement (EIS) and federal permitting process for Pebble under NEPA that is being led by the U.S. Army Corps of Engineers continues to advance. According to Northern Dynasty, the U.S. Army Corps of Engineers expects to finalize the EIS in early 2020 and issue a final record of decision by the middle of next year. In other news, the company closed a bought deal offering of 12.2 million common shares at $0.41 per share for proceeds of US$5 million. The company plans to use the money on engineering, environmental, permitting and evaluation expenses associated with the EIS, outreach and engagement with political and regulatory offices in Alaska and the U.S. federal government, Alaska Native partners, and other regional and state-wide stakeholder groups, as well as for general corporate purposes.


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