TSX gains ground

The TSX Composite Index was up 98 points to 12,725.09 points for the Jan. 14-18 period.

The lift to Canadian equities came on the back of optimism regarding the U.S. debt ceiling and an improvement in the U.S. labour market. Further from home better economic growth numbers in China and solid industrial production numbers out of Japan also helped to lift investor confidence.

The Global Gold Index was off a point to 295.56 points, despite the price for the yellow metal being US$28 higher as it closed out the period at US$1,687.00 per oz.

The Capped Metals & Mining Index was also down, as it fell 9 points to 1,035.21 points, despite the price for copper rising 2¢ to $3.68 per lb. 

The long pursuit of Aurizon Mines turned hostile as Alamos Gold says it will pay $780 million in cash and shares for the junior. The offer works out to $4.65 per share — a 40% premium over Aurizon Mines closing share price on Jan. 9. If successful, the deal would combine two single-asset gold miners with mines in safe jurisdictions and production of 320,000 to 370,000 oz. of gold annually over the next two years and 500,000 oz. of production by 2016. Aurizon shares were up 36% to $4.64 while Alamos shares were off 8% to $15.61 for the period.

Eco Oro Minerals shares were on the come-back trail as the company moved closer to advancing the Angostura gold-silver project in northeastern Colombia. The news responsible for the turning point was that its Angostura deposit sits largely outside of the recently approved regional park boundaries.  Eco Oro shares were the largest gainer by percentage points for the period, as its stock surged 122% or 77¢ to close Jan. 18 at $1.40. The company says 90% of the deposit lies outside of the proposed Santurban regional park and that the park limits won’t impede development.

CanAlaska Uranium bolstered its market cap by closing a deal for prospective ground in the Athabasca Basin. The company acquired three claim groups covering 66.87 sq. km. in the Patterson Lake area of Saskatchewan’s famed uranium region. CanAlaska says it is reviewing plans for exploration and looking for a Joint Venture partner. The company’s shares were up 69% to 30¢ for the period.

Investor’s didn’t like the pricing of an equity financing done by Labrador Iron Mines. The company will issue the units at $1.05 each with each unit made up of a share and half of a warrant. A full warrant has a strike price of $1.35. The company says it will use the money to fund pre-stripping, mining and processing costs. Also weighing the stock down was Desjardin Securities lowering its target for the company to $1.25 from $2.00 a move that echoed an earlier CIBC downgrade. Labrador Iron Mine shares finished the period off 30% at 99¢.