TSX Venture rises, Aug. 19–23: Great Bear, Equinox, Cantex, Gowest

The S&P/TSX Venture Composite Index gained 2% to 581.95 during the trading week.

Great Bear Resources recorded the biggest value gain, rising $1.45 to $6.52. On Aug. 21, the company announced the latest drill results from the Hinge and Dixie Limb zones on its Dixie gold project in Red Lake, Ontario. Highlights of the drill results include the discovery of a steeply plunging, high-grade subzone in the upper west of previous drilling in the Hinge zone. Results include 30.81 grams gold per tonne over 3 metres within a broader zone of 7.4 grams gold over 13 metres, from a 68-metre vertical depth. The Hinge subzone was also tested to 140 metres’ vertical depth, where assays returned 20.41 grams gold per tonne over 2 metres, within a wide interval of 2.07 grams gold over 30 metres. For Dixie Limb, recent drill results show 21.54 grams gold per tonne over 2 metres within a broader interval of 9.68 grams gold over 6 metres. Drilling continues to find high-grade gold intervals near Hinge-zone-style, gold-bearing veins in contact with the Dixie Limb. Broad intervals of low to moderate gold grades were also present at all locations drilled.

Equinox Gold’s shares were up $1.30 to close at $8.70. The company announced on Aug. 20 that it has consolidated its common shares at a ratio of 5 to 1. The consolidation, which lowered its outstanding shares from 566.3 million to 113.3 million, was necessary for Equinox to pursue a dual listing on a U.S. stock exchange. After the consolidation, shares issued pursuant to the company’s outstanding options, warrants, restricted share units and other convertible securities will be adjusted on the same basis.

The closing of a bought-deal financing underwritten by Canaccord Genuity Corp. and Leede Jones Gable Inc. on Aug. 22 drove Cantex Mine Development’s shares up 60¢ to close at $6.75. The company raised $12 million through issuing 1 million charity flow-through shares at $6.52 per share, and a further 824,000 flow-through shares at $6 per share. Gross proceeds from the financing will help cover exploration expenses that qualify as flow-through mining expenses.

Gowest Gold rose 88.5% to 25¢ per share, after it entered into a settlement agreement on Aug. 19 with PGB Timmins Holdings regarding Gowest’s alleged defaults under a 2016 Pre-Paid Forward Gold Purchase Agreement. Under the settlement agreement, PGB Timmins has withdrawn two notices — one relating to events of default and termination, and the other an intention to enforce security — that it delivered to Gowest in early August. In exchange, Gowest Gold must pay PGB Timmins a total of US$9 million in cash before Oct. 16, and 3,500 oz. gold, at a 15% rate of gold produced, from future production from the Bradshaw gold deposit, which forms part of Gowest’s North Timmins gold project.