Market news: Toronto Stock Exchange

The holidays brought cheer to Canadian investors, and the S&P/TSX Composite Index was up 54 points to 12,433.53 for the period, with equities still climbing at press time. 

A deal between Democrats and Republicans south of the border helped propel markets globally, as the country averted the fiscal cliff at the last minute. Markets had languished through much of December over fears that the two sides would not come to an agreement, and that automatic tax hikes and spending cuts would send the economic giant back into a recession.

The good news reverberated through both the precious-metal and base-metal markets.

The price of gold was up US$17 to US$1,675.80 per oz. and the S&P/TSX Global Gold Index was up 11 points to 303.04, with majors Barrick Gold and Goldcorp making gains. Single-asset producers, such as Detour Gold and Osisko Mining, rose as well.

On the base-metal side, renewed optimism for global economic growth had copper climbing 9¢ to US$3.65 per lb. and the Capped Diversified Metals & Mining Index rising 10 points to 1,010.99. Inmet Mining reflected the red metal’s price gain, with its stock up 65¢ to $73.40 per share.

More impressive, however, were the gains made by Western Copper and Gold, which finished up 28%. The company announced it had no comment on the “unusual trading activity” around its stock. The junior holds significant gold, copper and molybdenum resources and reserves at its Casino project in the Yukon. It recently raised $32 million in cash by selling a 2.75% net smelter return royalty.

Lydian International’s recent adjustments at its Amulsar gold mine in Armenia coincided well with the mini-rally in commodities, with company shares up 21% to $2.16. Lydian has configured a new crushing circuit at the mine to boost throughput.

Nuinsco Resources helped increase investor confidence by closing a loan that put $2.5 million into company coffers. The loan comes after its recent sale of a royalty on its Cameron gold project for US$5.1 million. The company says the loan would allow it to pursue unspecified projects that could generate cash flow in the near-term. Nuinsco shares were up 33% to 4¢ for the period.

Marathon Gold completed a $5.5-million bought deal, gaining 100% ownership of the Valentine Lake project, which hosts the Leprechaun gold deposit, with its measured and indicated resource of 9.5 million tonnes grading 2.22 grams gold for 682,000 oz. gold. Marathon shares were up 20% to 64¢.

Vista Gold closed a public offering that raised US$11.5 million. The company intends to use the net money to advance the Mount Todd gold project in Australia, including completing a bankable feasibility study. Vista shares were up 18% to $2.58 for the period.

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