The S&P/TSX Venture Composite trended downward for a second straight week during the trading period, losing 6.96 points en route to a 987.93-point close. Commodity futures struggled during weekly trading, with the energy sector pressured by the slipping oil price in the past three months. Traders also considered the effects of the U.S. and European Union levying more sanctions against Russia for its involvement in Ukraine.
Gold futures approached a four-week low, with December contracts for gold bullion dropping 2.85%, or US$36.10, before closing out the trading period at US$1,231.50 per oz. Crude oil prices also struggled, as November contracts for West Texas Intermediate lost 2.25%, or US$2.09, en route to a US$91.37-per-barrel weekly close. Copper finished down 2.2%, or US6.9¢, to close at US$3.11 per lb.
Junior Selwyn Resources led the value-added category by lining up an asset sale that changes the direction of the company. Shares rose $1.87, or 106%, to $3.63. On Sept. 10 the company announced it had agreed to sell its main asset — the ScoZinc mine, mill and property package — in Nova Scotia, for $17.5 million to a private company. According to the agreement, Scotian Zinc Mines will pay Selwyn $10 million in cash and $7.5 million in the form of a senior-secured debt note. The note will be payable in five annual installments of $1.5 million at an 8% interest, starting Dec. 31, 2015. Selwyn intends to return much of the cash to shareholder, which amounts to $3.60 per share.
Bear Creek Mining closed atop the value-lost column after releasing an engineering update at its flagship Corani silver–lead–zinc project midway between the cities of Cuzco and Puno in Peru. Shares dropped 37¢ to finish the week at $2.76. The optimization studies have been underway for six months, with trade-off studies identifying several design modifications to enhance mine performance for detailed engineering. The project optimizations should not need environmental and social-impact study and target reductions in initial and sustaining capital expenditures. Corani’s possible changes include modifications to in-pit tailings design, semi-autogenous grinding and mill specifications, contract mining during early stage operations and lower water usage.
U.S.-focused Graphite One Resources led the volume-traded category after twice increasing the first tranche of a non-brokered private placement to $5 million. The company will issue 38.5 million units at 13¢ apiece, with each unit comprising a share and a non-transferable warrant. Each warrant entitles the holder to buy a share for 20¢ within two years and 25¢ during the next two years. Graphite One closed up 3¢ on 15.7 million shares traded at 17¢ per share.
TSX-V most active issues
|Graphite One R||GPH||15744||0.17||0.14||0.17||+||0.03|
|Red Pine Expl||RPX||5866||0.02||0.01||0.01||0|
|Saint Jean Car||SJL||3416||0.03||0.02||0.02||+||0.01|
TSX-V greatest percentage change
|Teslin Rvr Res||TLR||343||0.08||0.02||0.08||+||300|
|Trio Gold Corp||TGK||12||0.01||0.01||0.01||+||100|
|Pac Iron Ore||POC||290||0.03||0.02||0.03||+||66.6|
|Gray Rock Res||GRK||105< /td>||0.15||0.06||0.06||+||57.1|
|Green Valley M||GVY||47||0.01||0.01||0.01||–||50|
|China Mnls Mng||CMV||24||0.01||0.01||0.01||–||50|
TSX-V greatest value change
|Horizns G Bear||HGD||1324681||13.11||+||1.36|
|Potash Cp Sask||POT||3243718||38.06||+||1.13|
|Labdr I-Ore Ro||LIF||1708766||26.25||–||1.38|
|Horizns G Bull||HGU||2495689||8.78||–||1|