TSX rises, July 11-15

The S&P/TSX Composite Index rose 1.6% to 14,482.42, despite lower gold and oil prices. The S&P/TSX Global Gold Index fell 3.2% to 266.68, as the gold price retreated 2% to US$1,337.10 per ounce. The S&P/TSX Global Mining Index edged up 0.8% to 66.43, while the S&P/TSX Capped Diversified Metals & Mining Index jumped 6% to 645.66. Crude oil futures slipped 0.4% to settle at US$45.24 per barrel.

Argex Titanium shares catapulted 63% to 7¢, after a $2.4-million financing. On July 13, the company closed a private placement offering of secured convertible notes. Each note is convertible into 33,333 shares priced at 3¢ apiece and 28,333 warrants to buy more shares for 5¢ apiece over five years. The notes will mature in two years and bear a 15% annual interest rate until converted. Argex also amended its 8% convertible unsecured debentures, where it lowered the conversion price from $1.14 to 11¢. With the cash injection, Argex says it could resume activities at its lab in Salaberry-de-Valleyfield, Que., and advance its plans to build both a pilot and commercial plant to produce titanium dioxide pigment.

INV Metals soared nearly 47% after publishing positive results from a prefeasibility study on its Loma Larga gold project in Ecuador. The study envisions Loma Larga as an underground operation, processing 3,000 tonnes per day, instead of 1,000 tonnes per day previously. Estimated annual production is 150,000 oz. gold at all-in sustaining costs of US$577 per oz., over an 11-year mine life. With initial capital costs of US$285.9 million, the study estimates the project will generate a US$301-million after-tax net present value and 26.3% internal rate of return, using a US$1,250 per oz. gold price and a 5% discount rate. The after-tax payback should occur under three years. INV anticipates starting a bankable feasibility study by year-end. It closed at 85¢ per share.

Shares in Talon Metals shot up 31% to 11¢ on the drill bit. On July 12, Talon provided results from the winter 2016 exploration program at the Tamarack nickel-copper-platinum group metals (PGM) project in Minnesota. The best hole returned 11 metres of mixed massive sulphides, grading 4.7% nickel, 2.4% copper, 0.6 gram PGM and 0.10 gram gold per tonne. The results confirm the “previously predicted potential for further high-grade mineralization in the Tamarack zone,” Talon says. Drilling is ongoing at the project.

Trevali Mining shares jumped over 25% to 79¢, on new news. In its latest release, dated July 7, the miner reported it achieved commercial production at its Caribou zinc mine in the Bathurst mining camp of northern New Brunswick. Trevali is producing zinc and silver-lead concentrates from the 2,000-tonne-per-day Santander mine in Peru and from the 3,000-tonne-per-day Caribou mine.