TSX climbs, July 21-25

The S&P/TSX Composite Index gained 188.47 points to close the trading week at 15,455.04. The S&P/TSX Capped Diversified Metals & Mining Index advanced 32.39 points to 924.02, while the S&P/TSX Global Gold Index stayed relatively flat at 200.79 points. The spot price for gold fell US$2.60 per oz. to US$1,308.30.

Romarco Minerals was one of the week’s most actively traded stocks after a permitting milestone at its Haile gold project in South Carolina. On July 24, the U.S. Army Corps of Engineers released its environmental impact statement for the project. This sent Romarco shares up 8¢ to 91¢ on 21.5 million shares traded.

On July 28, Romarco noted that the Corps would issue its record of decision on the Clean Water Act Section 404 wetlands permit application in November 2014. The 404 permit is the only federal environmental permit that the project needs.

“The November timing falls within our planned schedule for funding and preparing for construction activities at the Haile gold mine,” company CEO Diane Garrett said.

Shares of Marathon Gold rose 30% to 52¢ after the company discovered new gold mineralized trends at the Sprite and Rainbow zones on its Valentine Lake property in central Newfoundland. Marathon found the trends through trenching and bedrock sampling and says 70% of the combined 2 km long trend has never been drilled.

Petaquilla Minerals jumped 28.5% to 9¢ after closing its commercial agreement with a subsidiary of First Quantum Minerals. The agreement, dated May 23, 2013, and executed about a year later, ensures the complete separation of the Petaquilla’s Molejon gold mine in Panama from First Quantum’s nearby Cobre Panama’s copper project.

Upon closing Petaquilla received US$50 million, and should rake in another US$10 million from the agreement in the near future. First Quantum added $1.37 to end at $26.19.

London-based Serabi Gold had a good run. It climbed nearly 24% to 11¢ after reporting that its Palito gold mine in Brazil reached commercial production on July 1. The mine produced 3,242 gold oz. in the second quarter and 5,542 oz. for the year to date.

On the flipside, Pretium Resources plunged 15% to $7.55 after the Vancouver-based firm entered into an underwriting agreement with a syndicate of underwriters, led by Scotia Capital. The underwriters have agreed to buy 8.3 million Pretium shares at US$7.25 apiece from the junior and its largest shareholder Silver Standard Resources.

Under the offering, Pretium will issue 6.8 million shares for gross proceeds of US$49.5 million, and Silver Standard, which holds 18% of Pretium, will sell 1.5 million shares for gross proceeds of US$10.5 million. The underwriters also have an over-allotment option to buy 1.2 million shares at the same price.

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