TSX Venture inches lower, May 28-June 1

The S&P/TSX Venture Composite Index continued a decline that started in mid-May, falling 1.2% to end the trading week at 765.94. 

Shares of Goldex Resources rose 69¢ to $1.16 after news that a trade ban on the Frankfurt Stock Exchange from April had been lifted. Shares peaked at $2.56 in March after positive news out of Goldex’s Korokoro gold project in Mali, including the discovery of a prospective area and joint ventures with Geo-Sys-Tech and RexMetal.  Goldex’s share price plummeted, however, as low as 88¢ after the B.C. Securities Commision issued a halt trade order (HTO) on March 20 to prevent trading of the company’s shares until April 10, saying “circumstances exist or may occur that could result in other than an orderly trading of the company’s shares.” The share price rebounded after the HTO was lifted, but then fell as low as 44¢ when the Frankfurt Stock Exchange suspended trading of the company’s shares on April 24.

Shares of Aurania Resources rose 56¢ to $2.50. In early June the company announced it would finish a private placement financing for up to $4 million. The announcement came one day after Aurania said it found a sixth epithermal target in the Latorre district of its Lost Cities gold project in southeastern Ecuador. The new zone, 8 km south of the company’s Crunchy Hill area, is called Yawi. The company has said it will “fast track” Yawi to drilling in the fourth quarter of 2018.

Aurania also began trading on the Frankfurt Stock Exchange under the symbol “20Q” in mid-May.

Shares of Pacton Gold fell 34¢ to 43¢ after neighbouring explorer Novo Resources announced the results of two, 7-tonne bulk samples taken from its Karratha gold project in Western Australia’s Pilbara region. The first graded 10.4 grams gold per tonne, while the second returned 1.5 grams gold. Shares of Novo also took a hit, falling 29% to $4.28.

Shortly after, Pacton announced it had acquired properties totalling 1,126 sq. km from Impact Minerals, raising the company’s Pilbara portfolio to 2,227 sq. km and making it the third-largest landholder in the area. Its land position equals 18% of Novo’s. Its properties are nearby the Novo and Kairos Minerals properties. 

Less than a week later, the company entered into an agreement to acquire another 31 sq. km, with five mining leases and one exploration licence in the Pilbara region. Pacton will acquire Gardner Mining’s Friendly Creek gold property for $25,000 and 2.5 million shares. TNM