TSX Venture rises, Aug. 1-5

The S&P/TSX Venture Composite Index gained 10.52 points, or 1.3%, to an 806.69-point close. A strong U.S. jobs report for July drove spot gold prices down US$15.28, or 1.1%, to US$1,336 per oz. gold, as expectations mount for the U.S. Federal Reserve to raise interest rates this year. Comex copper dropped 3.2% to US$2.15 per lb. copper.

Shares of Ascot Resources rose 65¢, or 52%, to $1.90 — its highest value since November 2007. The junior explorer recently closed a $20-million private placement with mining and exploration financier Eric Sprott. The investment gives Sprott 12.9% of Ascot’s outstanding shares on a non-diluted basis, and 18.2% on a partly diluted basis. The financing is comprised of 17.4 million units consisting of one share and one-half warrant, at $1.15 per unit. Each warrant is exercisable within 24 months at $1.50 per unit. Ascot is in the midst of a 60,000-metre drill program at its flagship gold-silver Premier project, 20 km northeast of Stewart, B.C. The project hosts the historic Premier mine, which saw production of 2.1 million oz. gold and 44.2 million oz. silver, out of 8.6 million tonnes, from intermittent operations between 1918 and 1996.

Mineral bank First Mining Finance saw 26 million shares traded, before closing up 30¢, or 34.5%, to 1.17¢ per share. On July 21, the company announced plans to increase its $16-million private placement to $27 million, with the issue of 33.8 million units at 80¢ per unit. Each unit consists of one share and one-half warrant, with each whole warrant exercisable within 36 months at $1.10 per share.

HTI Ventures was a front-runner in the greatest percentage change category, with shares gaining 292% to 49¢. On July 25, the company announced plans to increase its private placement to 100 million shares at 35¢ per share due to excess demand. The inactive explorer was overhauled in July by mining and exploration financiers Frank Giustra and Neil Woodyer, who acquired 10.5 million and 6.2 million shares, for a 29.6% and 17.4% stake in the company. HTI plans to change its name to Leagold Mining, pending an annual general meeting in August.

Shares of Blue Sky Uranium rose 24¢, or 100%, to 48¢ after announcing a $2.5-million private placement of up to 6.5 million units at 38¢ per unit, which consists of one share and a warrant. Each warrant is exercisable within 24 months for 50¢ per share, and subject to acceleration if the volume-weighted average price of the company’s shares stand at 80¢ or greater for 10 straight trading days. Blue Sky is exploring its 5000 sq. km land package in the Patagonia region of southern Argentina for uranium deposits.