TSX Venture approaches 52-week high, April 25-29

The S&P/TSX Venture Composite Index built on its three-month run during trading, as it gained 2.8%, or 18.69 points, en route to a 674.87-point weekly close. Gains were underpinned by improving commodity markets and a stronger Canadian dollar. However, Statistics Canada reported the Canadian economy contracted 0.1% in February after registering 0.6% growth in January.

June contracts for gold capped a four-week April surge with a 4.9%, or US$60.50 weekly gain, en route to a US$1,289.20 per oz. close. June contracts for West Texas Intermediate crude oil jumped 5%, or US$2.19, before finishing at US$45.92 per barrel. June contracts for copper closed flat at US$2.28 per lb.

Prospect-generator Reservoir Minerals topped the value-added category after  receiving a US$365-million takeover bid from producer Nevsun Resources. Reservoir gained $2.24 per share on 5.4 million shares traded before closing at $9.20 per share.

Reservoir’s high-grade Timok copper discovery in Serbia has drawn attention from copper producers, with Lundin Mining previously trying to acquire a 75% stake in the project for US$262 million. Nevsun’s bid would win out, however, due to a right of first offer Reservoir holds on the asset.

The latest offer is a 35% premium on Reservoir’s 20-day, volume-weighted average trading price and values the firm at US$365 million, or $9.40 per share. Nevsun shareholders would hold a 67% equity stake in the combined entity.

First Mining Finance also had a busy week after it acquired the Pitt gold property from Brionor Resources. The company saw nearly 13 million shares change hands, as it gained 17¢, en route to a 76¢-per-share close.

On April 28, First Mining announced a deal where it would pay $1.3 million in cash and shares for the asset. The Pitt property is in Quebec’s Abitibi gold region, and next to First Mining’s wholly owned Duquesne gold project.

Pitt hosts 600,000 indicated tonnes grading 7.83 grams gold per tonne for 151,000 contained oz., and 476,000 inferred tonnes at 6.91 grams gold for 106,000 contained oz. gold.

Shares in West African-focused developer Roxgold went on a run after reporting a maiden resource for a satellite discovery at its Yaramoko project in Burkina Faso, where it expects to pour first gold in June. Shares gained 24¢ on 7.6 million shares traded before closing at $1.33 per share.

On April 27 Roxgold released an inaugural resource for its QV1 target at Yaramoko’s Bagassi South zone, which sits 1.8 km south of the scheduled mining area. QV1’s inferred resource totals 474,000 tonnes grading 13.13 grams gold per tonne at a cut-off grade of 5 grams gold.