HudBay Minerals and Lundin Mining have agreed to join forces in an effort to fight the current downtrend. Under the proposal, Lundin shareholders will get 0.3919 of a Hudbay share for each Lundin share held. Hudbay ended the day down C$2.07 at C$3.16, while Lundin added C$0.04 to close at C$1.05.

Finally, a sign that there is equity financing out there for the right deal, Red Back Mining has entered into a bought deal comprising 17.15 million shares at C$3.50 a piece for a cool C$60.02 million. Red Back ended the day up C$0.60 at C$4.60.

Osisko Mining continues to hit the goods at the South Barnat zone near is its Canadian Malartic deposit in Quebec. The latest results included 185.2 metres grading 1.97 grams gold per tonne. Osisko ended the day up C$0.13 at C$1.70.

Shares of Katanga Mining added C$0.01 to C$0.39 after reporting that the depressed price of cobalt has resulted in the temporarily suspension of mining operations at the Tilwezembe open pit and ore processing at the Kolwezi concentrator in the Democratic Republic of the Congo.

The trading week ended on a positive note with news of a large equity financing indicating there is money out there that will to be put to work for the right assets. We will see what Monday trading has in store.

Source: Resource Stock Roundup Monday, November 24th, 2008

Shares of Hudbay Minerals (HBM) added C$0.38 to close at C$5.35, while Lundin Mining failed to attract interest losing C$0.05 to close at C$1.95.

Diversified miner Teck Cominco (TCK) added C$1.20 to close at C$16.30.

Shares of Blue Note Mining (BN) hit C$0.01 after the company announced that its Caribou and Restigouche zinc and lead mines in eastern Canada are being put on care and maintenance. Current zinc and lead prices make the operation unprofitable.

Shares of Alexis Minerals (AMC) jumped C$0.09 to close at C$0.395 following news of a 3.45 metre drill intercept running 6.81% copper at its project in Val d’Or, Quebec.

The big board gold miners got slammed yet again as Barrick Gold (ABX) fell C$1.11 to close at C$27.93, Goldcorp dropped C$1.05 to close at C$23.70, Kinross Gold ended the day down C$0.15 at C$12.75, Yamana Gold (YRI) gave back C$0.09 to close at 5.55 and Agnico Eagle (AEM) bucked the trend by adding C$0.61 to close at C$42.53.

Inflation versus deflation seems to be the trading story of the day, with several pundits now betting against gold as interest rates appear set to fall further. We will see what Monday trading has in store.

Source: Resource Stock Roundup Monday, October 20th, 2008

For the tale of the tape, the TSX Exchange lost 0.68%, while the TSX Gold Index gave back 3.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, added 0.10% with the declining issuers beating out the advancers by a 427 to 376 margin on pathetic volume of only 82 million shares traded.

In a clear sign of uncertain times, Uruguay Mineral Exploration (CVE:UME) has hedged 45,000 ounces of the 63,000 ounces of gold production expected for the nine-month period ending May 31, 2009. The price is $796.25 per ounce. Uruguay ended the day up C$0.04 at C$1.19.

A slumping zinc price has prompted HudBay Minerals (TSE:HBM) to close its Balmat mine in New York state. The mine re-opened in May 2006 and hit commercial production in January 2007. HudBay ended the day down C$0.29 at C$11.11.

Sprott Resource (TSE:SCP) signed a lock-up agreement with Severstal Resources, the mining division of OAO Severstal, to tender into a takeover bid to be made by Severstal for all the outstanding shares of PBS Coals. PBS is a private company in the midst of going public through a company called Penfold Capital Acquisition (CVE:PNA.P). The takeout offer is at C$8.30 per share, which would put another C$225.3 million into Sprott’s already full coffers. Sprott ended the day down C$0.02 at C$3.43 on over 10 million shares changing hands.

The Canadian markets are so heavily weighted on the resource side that it looks like the price of oil will dictate market direction over the medium term. We will see what Monday trading has in store.

Source: Resource Stock Roundup: Saturday, August 23rd, 2008

For the tale of the tape, the TSX Exchange gained 0.76%, while the TSX Gold Index added 1.3% and the TSX Venture Exchange, Canada’s largest junior exploration bourse, dropped 0.48% with the declining issuers once again out pacing the advancers this time by a 577 to 470 margin on big volume of 250 million shares traded.

Canada’s third-biggest zinc and copper producer, HudBay Minerals (HBM) is offering up 0.61 of its shares for each Skye Resources (SKR) share. HudBay would also buy around 12.7 million shares of Skye at a price of C$7.51 per share in a private placement. At the end of the day, HudBay would have 160.9 million outstanding, of which Skye shareholders would have 20.3 percent. Skye has agreed to pay a break fee of $14 million to HudBay if another takeover offer prevails. Of interest is Skye’s Fenix nickel project in Guatemala. Fenix is slated to go into production in the second half of 2009 at a developing cost of C$1.1 billion and would mark HudBay’s first foray into nickel. HudBay ended the day down C$0.78 at C$14.01, while Skye added C$0.98 to close at C$8.70.

The big winner of the session was Weststar Resources (WER), which added C$0.73 to close at C$1.06. The junior inked a letter of intent to acquire 72 coal permit applications some 70 kilometres northwest of the recent coal discovery of Goldsource Mines (GXS), near Hudson Bay Saskatchewan.

Shares of Bitterroot Resources (BTT) continued to climb on speculation that the company is acquiring three coal permits in Manitoba. Bitterroot gained C$0.10 to close at C$0.93.

Meanwhile away from the red hot coal sector, Tarsis Capital (TCC) reported that the first hole drilled at the Discovery Horizon on its Mor property in the Yukon intersected massive, semi-massive and disseminated sulphide mineralization from 95.09 to 103.48 metres. Another narrow interval of intermittent semi-massive, disseminated and wispy sulphide bands comprising coarse pyrite and lesser chalcopyrite and magnetite was cut between 139.63 and 144.76 metres. Results pending and drill rig turning. Thinly traded Tarsis ended the day up C$0.06 to C$0.45.

The roller coaster ride continues for investors in the Canadian Markets. We will see what Tuesday trading has in store.

Source: Resource Stock Roundup Tuesday, June 24, 2008