TSX climbs, March 7-11

The S&P/TSX Composite Index rose 2.3% to 13,522, marking its second straight weekly gain, helped by higher oil prices. The S&P/TSX Capped Diversified Metals & Mining Index slipped 0.4% to 452.08, while the S&P/TSX Global Gold Index edged up 1.8% to 184.87. The spot gold price, however, fell 0.7%, or US$9 per oz., to US$1,250.10. The April contract for benchmark crude oil added US$2.58 to settle at US$38.50 per barrel, while the May contract for Brent crude gained 4.3% to close at US$40.39 per barrel. Both are more than 40% above their 2016 lows.

Rubicon Minerals surged 91% to 11¢ per share on no news. The company, which saw its shares plunge after slashing gold resources at the F2 deposit by 88% earlier this year, said it “does not have any material changes to report,” and “is not aware of any material undisclosed information that would account for the recent trading activity.”

Shares in Wellgreen Platinum soared 38% to 29¢ on the back of a non-brokered private placement, where it plans to offer up to 60.5 million units in two tranches priced at 20¢ per unit, for total proceeds of up to $12.1 million. In connection with the private placement, Wellgreen signed an agreement to provide 50 million units to Electrum Strategic Opportunities Fund in two tranches for $10 million. Upon closing of the second tranche and assuming Wellgreen issues 60.5 million units, Electrum will own 26.9% of Wellgreen, or a 40.6% interest on a partly diluted basis, assuming the exercise of all related warrants.

Each unit comprises one share and one warrant, where a holder could buy one Wellgreen share for 27¢ within five years of closing the first or second tranche. Under the first tranche, expected to conclude shortly, Wellgreen will issue 15.5 million units, where Electrum will subscribe to 14 million units. Upon completion, Electrum will have the right to nominate a member to Wellgreen’s board. The company will also seek shareholder approval for the second tranche, where it intends to issue 45 million units, with Electrum agreeing to buy 36 million units. After closing the second tranche, Electrum could nominate another board member. The company said it would benefit from Electrum’s strong mining expertise, as it advances the Wellgreen PGM-nickel project in Yukon.

Geologix Explorations plunged 36% to 4¢ per share on no news. In December, Geologix said it was under a review by the Toronto Stock Exchange, as it no longer met TSX’s listing requirements, due to its low share price and lack of exploration activity in 2015. On March 14, the company reported that its shares have been conditionally approved for listing on the TSX Venture Exchange and should begin trading on March 31. Meanwhile, it applied for a voluntary delisting from the TSX, where its shares should stop trading at the end of March 30.