A strong gold price was partially offset by a bout of tax loss selling as the TSX Venture Exchange, Canada’s biggest junior exploration bourse, flat-lined most of the week before edging higher on Friday to gain 1.2% on the week.
Shareholders of Atna Resources got an early Christmas present with the junior reporting a drill intercept of 33.5 grams gold per tonne over 45 metres at the Ogee zone on its Pinson gold property. The new discovery had investors grabbing for shares sending Atna’s stock up C$0.75 to a new 52-week high of C$1.77 before settling out the week up C$0.62 at C$1.63. As usual with junior explorers these days, the good news meant a financing, with Atna announcing a C$7 million bought deal financing of 5.2 million special warrants priced at C$1.35 each.
Goldcorp put a smile on the face of Wolfden Resource’s shareholders after agreeing to buy 6 million Wolfden shares at a price of C$3.60. The deal puts C$21.6 million in Wolfden’s till and gives Goldcorp a 9.8% stake in junior. Of interest to Goldcorp are Wolfden’s Red Lake assets. The company recently acquired Sabina Resources’ 60 per cent interest in the Follansbee Red Lake gold property, thereby consolidating an emerging gold play where drilling is hitting significant gold grades on both Wolfden’s wholly-owned Bonanza property and on the adjacent Follansbee ground. Wolfden closed the week at C$3.40, up C$0.45, while Goldcorp ended up at C$23.78, down C$1.27.
Hitting a new 52-week high this past week was David Lowell’s Peru Copper. The company just retained UBS Investment Bank to act as its financial advisor to look at strategic alternatives to maximize shareholder value from Peru Copper’s Toromocho copper project in Peru. With copper prices robust even the lower type grade of 1.8 billion tonnes grading 0.47% copper, 0.016% molybdenum and 6.8 grams silver per tonne yielding a 0.68% copper equivalent grade at a copper equivalent cut off of 0.27%, looks robust. Peru Copper hit C$3.41, up C$0.91.
It was not a good week for Dynatec as Impala Platinum (Implats) delivered a formal notice of withdrawal under the Ambatovy nickel project shareholder agreement. The other partners, Sumitomo and Dynatec have confirmed that they remain committed to moving forward with the project. The question investors are asking is what happened in the six weeks since signing the agreement that has Implats walking? Dynatec ended the week off C$0.13 to close at C$1.24.
On the gold producer front, South African based Gold Fields completed a definitive agreement to buy all the remaining shares in Bolivar Gold it already does not own for $330 million. The blessing has been given by the South African Reserve Bank but Scion Capital, which is disputing the price, increased its nearly 10% equity position in Bolivar Gold to nearly 14%. Probably, too little too late to force an increased offer but one never knows. Bolivar Gold added C$0.06 on the week to close at C$2.92.
Placer Dome continued to fight off the C$10.8 billion take over offer from rival Barrick Gold with rumours swirling that Newmont will make a bid. Interestingly, the long shot wager is that Newmont will actually make a bid for Barrick Gold. Barrick Gold ended the week down C$1.27 to C$30.88, while Placer closed at C$25.55, down C$0.04 on the week.
Gold, gold and more gold seems to be the story as we head into December. With the critical $500 per ounce mark breached, investors will be eagerly watching to see if that level holds. Only time will tell, so stay tuned.