Resource Stock Roundup:Friday, May 22nd, 2009
May 22nd, 2009 | By Doug Casey | Category: Gold MarketThe big board stocks took a well deserved rest but the junior stocks continued to motor forward during Thursday trading on the Canada Markets. For the tale of the tape, the TSX Exchange gave back 2.76%, while the TSX Gold Index rallied 1.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.39% with the decliners edging out the advancers by a 386 to 379 margin on 169 million shares traded.
The on again, off again $22.5 million take over of Southwestern Resources by London-based Hochschild Mining PLC is finally set to close. Hochschild initially failed to complete the transaction over concerns about the sale of Southwestern’s former troubled Boka project in China but calmer heads prevailed. So the exchange bids good bye to Southwestern and its rather controversial history. Southwestern closed at C$0.49 and the take out price is C$0.50.
Cardero Resource (AMEX:CDY) cut in half its original $200 million price tag for the Pampa de Pongo iron deposit in Peru but still pockets a cool $100 million. The Nanjinzhao Group paid a $10 million deposit, along with the earlier $2 million paid. The balance of the purchase price of $88 million is now due on the earlier of ten days after necessary Chinese governmental approvals to proceed with the purchase are in hand and December 17, 2009. Cardero ended the day up C$0.26 at C$1.27.
Canada’s largest bourse is straddling the 10,000 point mark, while the junior board is threatening to break out above the 1,100 point mark thanks to a strong move in gold. We shall see what Friday trading has in store.
Source: Resource Stock Roundup:Friday, May 22nd, 2009
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Doug Casey is a contrarian investor, sought-after public speaker and author of several books. His work "Crisis Investing" held the position of # 1 bestseller on the New York Times list for 26 consecutive weeks. Doug's unusual views on the economy - and just about everything else - have gained a huge following in the investment community, and it certainly helps that his stock recommendations of undervalued junior exploration companies have made his subscribers millions. Now in its 27th year, Doug's monthly newsletter, the International Speculator, is one of the most established and esteemed publications on gold, silver and other natural resource investments. Together with the Casey Energy Speculator, it covers a broad range of carefully selected stocks with the very real potential of double- and triple-digit returns within 12 to 24 months.