TSX starts 2015 strong, Dec. 29-Jan. 2

Canada’s benchmark index exited the trading week in positive territory, helped by higher gold prices and mining stocks. The S&P/TSX Composite Index jumped 144.40 points to 14,753.65. It ended 2014 up 7.4% for the year, slightly below 2013’s 9.6% gain and off 1,000 points from its September high.

For the week, the S&P/TSX Global Gold Index rose 10.73 points to 151.28, as the gold spot price advanced US$14.90 to US$1,189.80 per oz. The S&P/TSX Capped Diversified Metals & Mining Index added 39.82 points to 707.83.

In last two weeks of December, Harte Gold rose 45% to 8¢ after raising more funds to explore its Ontario properties, as well as for permitting and development work at its 100%-owned Sugar Zone property, 60 km east of the Hemlo Gold camp.

On Dec. 24, it raised gross proceeds of $679,480 after the initial closing of a non-brokered private placement of up to 5 million units priced at 5¢ each and 12.5 million flow-through units priced at 6¢ each for gross proceeds of up to $1 million. 

Under the first tranche, Harte issued 11.3 million flow-through units, consisting of one share and half a share purchase warrant, at 6¢ per unit. Each full warrant is exercisable at 15¢ within 18 months from closing.

On Dec. 31, Harte closed the second tranche, raking in another $27,000 as it sold 450,000 flow-through units at 6¢. This brings the total amount raised to $706,480. The company intends to resume drilling on Jan. 12.

Marengo Mining lost 50% over the two weeks to end at 1¢ after taking a US$7.5-million loan from its major shareholder Sentient Global Resources Fund. The convertible unsecured debentures will mature on June 30, 2017, and bear an annual 9% interest rate. The proceeds will go towards advancing its Yandera copper-molybdenum-gold project in Papua New Guinea, among other things.

Ivernia sunk 28% to 7¢ after providing an update on its Paroo Station lead carbonate mine in Western Australia, after the sharp decline in lead prices. The firm anticipates meeting its 2014 production guidance of 80,000 tonnes of lead metal contained in concentrate, but expects sales to drop between 77,000 and 78,000 tonnes, from 80,000 to 85,000 tonnes. It notes LME lead prices on Dec. 19 were US85¢ per lb., down 14% from the average in the third quarter.

On Dec. 31, the Supreme Court of Chile dismissed Barrick Gold’s appeal of a lower court decision regarding sanctions the country’s environmental regulator, SMA, imposed on its Pascua-Lama project. An earlier court ruling found that SMA “improperly determined” the fines it slapped on Barrick for permit infractions in 2013. Barrick sought to appeal this decision, arguing the fines were calculated based on applicable law. Given the Supreme Court refused to consider the company’s appeal on “procedural grounds,” SMA will have to re-evaluate the fines. Barrick rose 68¢ to $12.86.