Resource Stock Roundup: Tuesday, February 10th, 2009
Feb 10th, 2009 | By Doug Casey | Category: Financial NewsA one day delay in the release of the bank bailout plan for the United States had the bulls and the bears battling to a draw during Monday trading on the Canadian markets. For the taile of the tape, the TSX Exchange added a modest 0.44%, while the TSX Gold Index fell back 4.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, lost 0.91% with the declining issuers edging out the advancers by a 350 to 334 margin on 155 million shares traded.
Merger mania amongst the junior explorers continued with Avion Resources looking to acquire Dynamite Resources. The proposal calls for Dynamite shareholders to get 0.75 of an Avion share for each Dynamite share. The move would consolidate the Segala mine property, in which Dynamite has a 40 per cent interest. Dynamite closed at C$0.14, up C$0.01, while Avion was unchanged at C$0.20.
Shareholders of Frontera Copper got an early Valentine’s Day present as Invecture Group raised its formal take over offer to C$0.75 from C$0.59 per share. Frontera ended the day up C$0.10 to C$0.78.
Drill results from the Border coal project in Saskatchewan sent shares of Goldsource Mines lower. Out of 18 core holes, five encountered thick intervals of core including a 50.9 metre section. Goldsource ended the day down C$0.57 at C$1.42.
In need of cash, Minera Andes inked a deal with Robert McEwen that would see the founder of Goldcorp (AMEX:UXG) take down 121.2 million shares at C$0.33 per share for a cool C$40 million. Minera ended the day up C$0.12 at C$0.49.
Red Back Mining posted record production in the fourth quarter for its mines in Mauritania and Ghana. Cash operating costs came in at an enviable $393 per ounce for the 72,664 ounces of gold. Despite the good news, Red Back followed the price of gold lower by ended the day down C$0.29 at C$6.81.
Shares of Kinbauri Gold added C$0.03 to close at C$0.42 after the company reported that a scoping study for its El Valle-Carles gold-copper project in northwestern Spain yields a net present value at a 10 per cent discount of $132 million and an internal rate of return of 42 per cent.
The buy side interest in resource stocks remains at favourable levels but with unemployment in North America soaring one has to wonder how long the optimism will last. We will see what Tuesday trading has in store.
Source: Resource Stock Roundup: Tuesday, February 10th, 2009
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