The U.S. Federal Reserve’s surprise announcement to maintain its stimulus program helped lift Toronto markets during the trading week.
The S&P/TSX Composite Index gained 83.07 points to 12,806.47 after the U.S. central bank said it would keep its US$85-billion-per-month bond buying policy, pushing out tapering concerns.
The S&P/TSX Capped Metals & Mining Index edged up 10.27 points to 811.91. However, the S&P/TSX Global Gold Index stayed flat at 178.20 points, as the New York spot price for gold slipped US$2.30 per oz. to US$1,325.60.
Nevada-based EMC Metals jumped 40% to 4¢ after it signed a letter of intent to sell its wholly owned subsidiary, the Springer Mining Co. — including the related mine, mill and tungsten assets, along with two other Nevada properties — to Americas Bullion Royalty Corp. for US$5 million in cash. The other assets include the Copper King tungsten project and the Carlin vanadium property. EMC says the proceeds would be used to repay a matured US$3-million loan and help develop its scandium projects in Australia and Norway.
Rockwell Diamonds rose 38% to 40¢ after it recovered four large diamonds from its Middle Orange River projects in South Africa. Of the four stones, two weighing 126 carats and 169 carats were discovered at the Saxendrift Hill complex, while the other two, weighing 116 carats and 138 carats, were retrieved from gravels at the Saxendrift extension pit. The company says the new mining areas and X-ray technology have increased diamond recoveries.
EMED Mining had an interesting week. On Sept. 16, it shares rose after it said it should receive two long-awaited permits for its past-producing Rio Tinto copper project in southern Spain by year-end, after which it could start a refurbishing site, with production expected in 2015. Three days later, EMED abruptly announced the resignation of its CEO and managing director Harry Anagnostaras-Adams, partially erasing those gains. However, it reassured investors that Rio Tinto is still on track and appointed Rod Halliday, the current CEO of its subsidiary, EMED Tartessus, as interim CEO. Its shares eked out a 28.5% gain to close at 14.5¢.
Mali-focused uranium explorer Rockgate Capital leaped 28.1% to 21¢ after receiving an unsolicited takeover offer from Denison Mines. Denison is offering 2.2 of its shares for each Rockgate share, implying a value of $26.7 million, or 23¢ a share. The bid came a week before Rockgate shareholders were slated to vote on a merger announced in early June with Mega Uranium. Rockgate has acknowledged Denison’s offer and advised shareholders to wait for details before taking action. Denison’s proposed offer remains open until Oct. 25.
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