Resource Stock Roundup: Wednesday, May 28th, 2008
May 28th, 2008 | By Doug Casey | Category: Gold MarketIt was a day of profit taking Tuesday trading on the Canadian Markets.
For the tale of the tape, the TSX Exchange fell 1.6%, while the TSX Gold Index dropped 2.9% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, plunged 2.51% with the declining issuers swamping the advancers by a 622 to 386 margin on volume of 191 million shares traded.
Western Prospector came out and stated that the takeover proposal by Khan Resources is “inadequate and falls significantly short of Western’s true value.” Under the proposal, each Western Prospector share would get 0.685 of a Khan share. Western has $25 million in cash and the deal has a total value of C$35 million. Western ended the day down C$0.02 at C$0.69, while Khan added C$0.02 at C$1.03.
Stepping in where few players are venturing these days, Goldcorp has agreed to guarantee a C$40 million credit facility to Terrane Metals to meet capital equipment procurement for its 100%-owned Mt. Milligan copper-gold project in central British Columbia. The non-revolving credit facility will allow Terrane to purchase the equipment it needs to build a 60,000 tonne per day open-pit mine and process plant. Terrane ended the day down C$0.05 at C$0.55.
Sanu Resources Ltd. has intersected a new volcanic-hosted massive sulphide zone on its Aderat prospect 4.5 kilometres north of its Hambok copper-zinc deposit in Eritrea. Assay results are pending. Sanu ended the day down C$0.02 at C$0.78.
For those looking for a high profile speculative punt, Troon Ventures appointed Michael Kenyon, Catherine McLeod-Seltzer and Jonathan Rubenstein to its board of directors that already holds Bruce McLeod, Stephen Quin, Colin K. Benner, John Robins and Zara Boldt. This brings together the founders and key players of success stories like Canico, Sherwood Copper, Arequipa and Eurozinc. Troon ended the day up C$0.24 at C$0.94.
The correction on in the Canadian markets is most welcome after the stellar run the board has made over the past month or so. We will see what Wednesday trading has in store.
Source: Resource Stock Roundup: Wednesday, May 28th, 2008
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