TSX Venture gains ground, Nov. 28-Dec. 2

The S&P/TSX Venture Composite Index gained 2%, or 14.8 points, en route to a 749.37-point weekly close. Spot gold prices fell US$6.13 per oz. gold, nearing 10-month lows, before closing at US$1,177.43 per ounce. Comex copper prices closed at US$2.63 per lb., down US5¢.

Vancouver-based Prospector Resources was a front-runner in the value-added column, gaining 50¢ to 55¢ after closing a non-brokered private placement that saw 42.9 million shares traded at 5¢ a share. The $2.1-million financing will settle the company’s current liabilities, fund a $200,000 exploration drill program at its Kalzas tungsten property in the Yukon and pursue asset acquisitions. Prospector directors resigned and Alexander Black, Klaus Zeitler and Daniel Kenney were appointed to the board. The financing and corporate restructuring is part of the company’s graduation to the TSX Venture Exchange as a Tier 2 mining issuer. The recapitalized company intends to focus on acquiring precious metal projects in North and South America that can be developed into mines.

First Mining Finance, a mineral property-holding company, saw 5.7 million shares traded before closing up 15¢ to 90¢ per share, after announcing a $21-million exploration and development budget for next year. The company plans to drill 27,000 metres at its Goldlund gold project in northwestern Ontario for the project’s preliminary economic assessment. Another 6,000 metres is planned for its Springpole gold project in northern Ontario, and 5,000 metres at its Hope Brook gold project in Newfoundland. More work is in store at the company’s other Canadian, U.S. and Mexican assets.

Shares of Abitibi Royalties gained 36¢ to $8.40 on news of increasing royalty holdings in the Red Lake district of western Ontario. The company partnered with AuRico Metals to enter an agreement with Frontline Gold, where each company can acquire a 1% net smelter return royalty (NSR) on several early-stage projects south of Goldcorp’s Red Lake gold mine. In exchange, Abitibi has agreed to pay Frontline $13,000, with AuRico paying the equal amount. The acquisitions build the company’s Red Lake royalty portfolio, which includes a 2% NSR on Frontline’s White Horse Island gold project. Abitibi has bought 14 royalties near mines since June 2015. Golden Valley Mines and Rob McEwen hold a 49.4% and 12.3% interest in Abitibi.

Chesapeake Gold gained 51¢ to $3.96 per share. The company’s primary asset is the Metates gold-silver project in Durango state, Mexico. An updated prefeasibility study released in the second quarter showed a 30,000-tonne-per-day operation expanding to 120,000 tonnes per day, with production over 25 years. The operation could annually deliver 659,000 oz. gold, 16 million oz. silver and 143 million lb. zinc at a gold-equivalent cash cost of US$490 per oz., net of zinc credits.


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