TSX dips, Nov. 27-Dec.3

Canada’s main stock index closed lower, with the S&P/TSX Composite Index slipping 0.8% to 13,324.67. The S&P/TSX Capped Diversified Metals & Mining Index fell 2.4% to 348.96. The S&P/TSX Global Gold Index, however, gained 2.6% to finish at 128.69, while the New York spot gold price slipped US$9.30 per oz. to US$1,061.60.

Barrick Gold saw heavy trading after it extended its credit facility. Roughly US$3.6 billion of the undrawn US$4-billion facility will now terminate a year later in January 2021, with US$400 million ending in January 2020. Barrick revised a financial covenant from a minimum consolidated tangible net worth of at least US$3 billion to a minimum net debt to total capitalization ratio of less than 0.60. It also sold a 50% interest in the Zaldivar copper mine to Antofagasta for US$1 billion in cash. Since the start of the year, the miner has announced US$3.2 billion in asset sales, joint ventures and partnerships. It is on track to meet its US$3-billion debt reduction for 2015. Barrick shares moved up 19¢ to $10.09, as 18.5 million shares changed hands.

Canadian Zinc shares jumped 23% to 8¢, after signing a collaboration agreement with Buchans Minerals — a subsidiary of Minco Plc — to participate in a research program, where the two companies will share mainly physical and metallurgical bench scale studies on their central Newfoundland copper-lead-zinc-silver-gold deposits. The Research & Development Corp. of Newfoundland is giving Canadian Zinc US$535,000 for the program, while Canadian Zinc and Buchan will each contribute up to $100,000. The research aims to assess whether the companies’ deposits can mined economically by using a central mill. Canadian Zinc owns four deposits, and Buchans owns three. None are large enough to support stand-alone operations.

Junior zinc producer Trevali Mining climbed higher on the back of results from its 2015 exploration program, which were designed to test deeper levels at its Santander zinc mine in Peru. The 10 new holes found significant zinc-lead-silver mineralization. Trevali also discovered mineralization in the footwall of the Magistral Central zone — highlighted by 25 metres of 4.1% zinc — which requires more testing. Other highlights include 15.2 metres of 11.5% zinc between the Magistral Central and South zones, and 10 metres of 8.3% zinc in the South zone. Trevali was up 12% at 38¢ per share.

Aureus Mining plunged 60% to 12¢ per share after taking on a US$22.7-million debt and equity financing to get its delayed New Liberty gold mine in Liberia into commercial production by January 2016. The financing includes a US$10-million loan from Rand Merchant Bank and Nedbank, and an expanded US$12.7-million brokered equity financing. Aureus will issue 168.3 million shares — up from 153 million shares previously — priced at 5 pence a share.