TSX gains slightly, March 28–April 1

The S&P/TSX Composite Index ended in positive territory, adding 0.62% to close at 13,440.44. The S&P/TSX Capped Diversified Metals & Mining Index, however, slipped 0.2% to 437.39, while the S&P/TSX Global Gold Index advanced 1.9% to 184.01. The spot gold price added 0.5%, or US$5.70 per oz., to US$1,221.90. The S&P/TSX Global Mining Index stayed relatively flat at 50.25. The May contract for crude oil tumbled 6.7% to finish at US$36.79 per barrel, while the June contract for Brent oil fell 4.4% to US$38.67 per barrel.

Avalon Advanced Materials, previously Avalon Rare Metals, rose on the back of a financing. On March 29, the junior completed a $775,000 non-brokered private placement consisting of 2 million units priced at 12.5¢ apiece and 3 million flow-through units priced at 17.5¢ apiece. Each unit comprises one share and a half warrant. The recent proceeds combined with the $1.37 million raised in early March, gives the company enough funds to complete its current work programs on the Separation Rapids lithium project in Ontario and continue work on the East Kemptville and Miramichi tin-indium projects in Nova Scotia and New Brunswick. Avalon shares advanced 23% to 16¢.

Mexico-focused silver producer Excellon Resources got a boost after announcing a $3 million financing by investor Eric Sprott, currently the chair of Sprott Inc. Under the non-brokered private placement, Excellon will issue 6.67 million units — consisting of one share and a half warrant — for 45¢ apiece. Each full warrant will allow the holder to buy one Excellon share for 65¢ for two years from closing, expected in early April. The junior will use the proceeds to continue work on its previously announced optimization plan at its high-grade Platosa silver mine in Durango, Mexico, and for general corporate purposes. The second phase of the optimization plan should start shortly. Excellon shares gained 22% to close at 61¢.

Americas Silver shares rose after the company published highlights of a prefeasibility study on its San Rafael project, along with a reserve and resource update and its 2015 financials. In 2015, the company produced 2.7 million silver oz. and 4.9 million silver-equivalent oz., at all-in sustaining costs of US$17.16 per oz., all within guidance, for US$53.5 million in revenue. The net loss was US$19.4 million, or US6¢ per share, compared to a net loss of US$78.7 million, or 39¢ per share, in 2014. Reserves at the end of 2015 increased 40% from 22 million oz. silver to 31 million oz., mainly due to a maiden reserve estimate for San Rafael, which is part of the Cosala operation in Mexico. According to the prefeasibility study, San Rafael should produce 5.5 million oz. silver, 250 million lb. zinc and 100 million lb. lead over an initial 5.5-year mine life at negative all-in sustaining costs for silver. Americas Silver added 21.6% to finish at 23¢ per share.