The week of Jan. 5-11 saw the price of gold fall to US$420 per oz. on Jan. 10 before climbing back up to US$421.35, where it closed in the afternoon in London (down US$6.40 over the period). The gold index was down one point to close at 198.69. The diversified metals and mining index also fell (5.5 points, or 2%) to 253.72 points. The S&P-TSX composite index fell 122 points to end at 9,020.69 points.
Bema Gold led the way in volume, trading 18.5 million shares. The stock closed up 12 at $3.62. In December 2004, Bema reported it would be mailing a takeover-bid to Arizona Star Resource‘s shareholders in January 2005. Bema currently owns 24% of the Cerro Casale gold and copper project in Chile, while Arizona Star owns 25%, and Placer Dome, the remaining 51%. The deal is valued at US$233 million. Bema is offering a 33% premium for Arizona Star shares, based on the 20-day moving-average share prices for both companies at the time of the bid. Shares in Vancouver-listed Arizona Star closed at $6.63, up 27.
The second-highest volume trader, Wheaton River Minerals, closed a penny poorer at $3.79 on a volume of 14.5 million shares. Wheaton signed a merger agreement with Goldcorp in December 2004 and Wheaton shareholders are set to vote on the merger at the end of this month. In related news, Glamis Gold‘s offer to buy all of Goldcorp’s shares is subject to Goldcorp’s not merging with Wheaton. Goldcorp shares dropped 13 over the period to close at $17.06. Glamis shares closed at $19.83, up 23.
LionOre Mining fell 37 to close at $6.39 on a volume of 13.4 million shares. In late 2004, the company took over MPI Mines of Australia, making MPI a wholly owned subsidiary of LionOre Australia.
Barrick Gold traded 10.9 million shares to fall 51, ending the period at $27.50. Barrick reported that construction at its Lagunas Norte gold mine in northern Peru was on schedule for a production startup in the third quarter of this year. In addition, the company reached a 3-year collective agreement with unionized workers at its Pierina mine, also in Peru.
Hillsborough Resources climbed 52 (and gained 42% in value) to close at $1.75 with 10.8 million shares trading hands. The company plans to buy eleven coal properties in northeastern British Columbia.
Shares in Nevsun Resources surged ahead 24%, closing at $2.65, on a volume of 5.5 million shares. Four months ago, the company was told by the Eritrean government to stop exploration on its Bisha gold property, but recently the country’s mines minister said he would be meeting with it and other companies active in the region. The company was to begin trading on the American Stock Exchange on Jan. 12.
Linear Gold fell 25%, down $2.35, to end at $7.20, after 3 million shares were traded. Linear reported drill results from its Ixhuatan project, in Chiapas state, Mexico. Highlights include 144 metres, beginning at surface, grading 6.6 grams gold and 39 grams silver per tonne.
Coeur d’Alene Mines is set to begin trading on the Toronto Stock Exchange under the symbol cdm. Coeur is the world’s largest primary silver producer. It trades on the New York Stock Exchange under the symbol cde.
Be the first to comment on "Nevsun rises over Eritrea talks"