Resource Stock Roundup:Tuesday, May 26th, 2009
May 26th, 2009 | By Doug Casey | Category: Gold MarketIt was a very quiet day of trading during Friday on the Canadian Markets, with investors generally taking the day off ahead of the long weekend in the United States. For the tale of the tape, the TSX Exchange added 0.44%, while the TSX Gold Index gave back 0.4% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, tacked on 0.61% with the advancers beating out the decliners by a 431 to 359 margin on 183 million shares traded.
High River Gold Mines came out with news that its largest shareholder, Russian steelmaker Severstal, is considering to make a cash offer of C$0.18 per share for High River. Severstal already has a significant stake, having taken down a US$45 million private placement in the financially plagued miner in November. High River ended the day down C$0.05 at C$0.18.
Silvermex Resources went shopping and elected to buy Aurcana’s Rosario polymetallic property in Mexico. Under the deal, Silvermex will pay C$125,000 and issue one million shares. The junior must pay another C$125,000 in 90 days and on production or within two years issue another one million shares and pay C$3 million in six installments. Silvermex also assumes the property payments of $350,000 due in July and $650,000 due in January. Silvermex ended the day down C$0.01 at C$0.19, while Aurcana lost C$0.005 to close at C$0.105.
Despite the slow session commodity related stocks still showed signs of strength and that is favourable for Canadian equities. We shall see what Tuesday trading has in store.
Source: Resource Stock Roundup:Tuesday, May 26th, 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.