TSX slumps, June 8-12

Renewed concerns over a potential Greek debt default and its effect on the euro pushed down Canada’s benchmark index. The S&P/TSX Composite Index fell 1.4% to 14,741.15. The S&P/TSX Global Gold Index dropped 3.2% to end at 154.27 and the S&P/TSX Global Mining Index lost 1.8% to 63. The S&P/TSX Capped Diversified Metals and Mining Index lost 2.7% to finish a 730.42.

Carpathian Gold shares soared 67% to close at 3¢ on 26.5 million shares traded. The miner received its third and last permit to operate its Riacho dos Machados gold project in Brazil, which previously operated under a provisional permit. A day later, Carpathian reported it extended the forbearance period and amended the project finance facility with Macquarie Bank Ltd. The agreement increases the funds under Tranche 3 of the facility by US$1.9 million for up to US$222.6 million, with US$220.7 million drawn. The forbearance period expires June 26, 2015. In the previous week, Carpathian said it applied for a voluntary delisting from the Toronto Stock Exchange, and intends to list on the Canadian Securities Exchange to lower costs.

Oban Mining shares climbed 33% to 10¢ on the back of a proposed five-way merger. The company, chaired by former Osisko Mining executive John Burzynski, has offered to combine with Eagle Hill Exploration, Temex Resources, Ryan Gold and Corona Gold to create a cash-rich, debt-free gold exploration and development firm, with assets in Ontario and Quebec. The deal is expected to close by early August. Oban has also agreed to complete a private placement with Osisko Gold Royalties, where Osisko will invest up to $20 million in Oban. The new Oban will be based in Montreal, with a corporate office in Toronto.

Shares in Mawson Resources rose 26% to 27¢ after a favourable court ruling. The company announced that on May 21 the Northern Finland Administrative Court rejected an appeal a non-governmental organization made against the company’s exploration permit that allows it to drill deeper at its Palokas gold project in northern Finland. Mawson received the exploration permit last June. The company says the permit doesn’t come into “legal force” until the re-appeal period expires on June 22.

Detour Gold was the top value gainer on no new news, jumping 96¢ to $14.78 per share. The miner announced an operational update at its flagship Detour Lake gold mine in Ontario. Mill throughput rates averaged 59,370 tonnes per day over the last three months, beating design capacity of 55,000 tonnes per day. Over the same period, mining rates averaged 271,000 tonnes per day, exceeding expectations. Estimated gold production for the second quarter is 110,000 to 120,000 oz. 


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