Iamgold wedding vote delayed

The gold index of the Toronto Stock Exchange shed 2.48 points to end the June 2-8 report period at 198.26 points. The loss mirrored a drop of US$2.50 per oz. in the gold price, resulting in an afternoon fix of US$392.35 per oz. in London on June 8. The other precious metals followed suit, as did the base metals. Still, the diversified metals and mining index managed to scrape together 0.8 of a point to make 220.2. Overall, the S&P-TSX composite index finished 37.17 points higher at 8,412.

Nuptials again took centre-stage among the miners, with Wheaton River Minerals‘ shareholders approving the planned merger with Iamgold. Wheaton’s issue slipped a nickel to $3.82 after the company rejected a sweetened bid from Idaho-based interloper Coeur d’Alene Mines earlier in the period. An Ontario Superior Court ruling has delayed a vote by Iamgold shareholders until June 29.

The court has also ruled that Golden Star Resources can proceed with a takeover bid for Iamgold. Iamgold had asked the court to disallow the bid on the basis it would violate a 2003 confidentiality agreement between the two. Iamgold lost 44 to make $7.20, while Golden Star slipped 2 to $6.20.

Tahera tried to steal some of the spotlight, jumping 5.5, or 16%, to 40.5. The federal government has approved the company’s Jericho diamond project in Nunavut, paving the way for final permits this year. At period’s end, Tahera announced a deal to explore, with De Beers Canada Exploration, a property adjacent to Jericho. Tahera can earn a half-interest in the 360-sq.-km property by spending $11 million by 2008. The property is home to four known diamondiferous kimberlites, the most prospective of which is 14 km west of the proposed Jericho processing plant.

Shares in junior Guyana Goldfields retreated from a 52-week high early in the report period to end 84, or nearly 130%, higher at $1.50. Diamond drilling on the Aurora property in Guyana has cut a new gold zone, dubbed Rory’s Knoll, about 1 km east of a zone discovered in late April. More recent drilling on the North Aleck Hill area, 1 km to the west, generally yielded slightly lower grades over narrower widths.

Construction at Teck Cominco‘s Pogo gold project in Alaska is in full swing following approval of the final feasibility study and production program. The latest study pegs capital costs at US$280 million, up 12% from the estimate contained in an interim feasibility study in 2002. Construction hit a snag earlier this year, when the project’s water discharge permit was appealed, though the matter has since been resolved. Pogo is expected to pour its first gold in March 2006. Teck’s B series rose 22 to $23.60.

Meanwhile, Metallica Resources fell steadily over the report period to end 13 poorer at $1.15. Early on, the company announced “significant delays” in obtaining an explosives operating permit from the local municipality for its Cerro San Pedro heap-leach gold-silver project in Mexico. By October, the company expects a court to have ruled on an ongoing battle over its lease agreement with the Ejido of Cerro San Pedro.

There was also grim news for McWatters Mining, which has filed proposals to creditors under the federal Bankruptcy and Insolvency Act. The plan will face a creditor vote on June 22, and also requires court approval. McWatters has worked to sell off its assets and come to an agreement with creditors, and has been under court protection since January. The TSX suspended the company’s shares in mid-May.