TSX soars, Aug. 25-29

Canada’s main stock index kicked off the Labour Day weekend with a 90.18-point gain to 15,625.73. The S&P/TSX Global Gold Index edged up nearly 4 points to 202.10, helped by a US$6.40 per oz. jump in the gold spot price, which closed at US$1,287.20. The S&P/TSX Capped Diversified Metals & Mining Index, however, fell 11 points to 879.99.

Peru-focused, multi-commodity explorer Vena Resources advanced 57% to 11¢, becoming the week’s percentage winner. On Aug. 28, the company amended its terms to buy joint-venture partner Forrester Resources — a private exploration and development firm has an option to buy up to 85% of  Vena’s Las Princesas–La Reyna gold-siver-zinc properties in northern Peru.

Under the revised offer, Vena, which previously announced its intention to buy Forrester in late June, will provide 13.8 million of its shares, instead of 22.9 million. Once the acquisition closes, former Forrester shareholders will own 17% of Vena, instead of the previous 25%. Vena expects the transaction to conclude shortly, but notes it depends on several conditions, including Forrester having at least $300,000 of cash-on-hand, down from the previous $700,000 requirement.

After the transaction, Forrester will become a wholly owned subsidiary of Vena, and its current CEO Martin Walter will join Vena’s five directors. Dennis Gibson will become Vena’s new chief financial officer, replacing interim CFO Silvia Dedios. 

Junior Inspiration Mining gained 44% to end the week at 12¢ after a 53% spike in its share price on Aug. 29, as 1.5 million shares changed hands. In a statement that day, Inspiration said it is unaware of any “specific factors” that might have led to the heavy trading levels and jump in share price.

However, on Sept. 2, Inspiration noted it had become aware of an email campaign regarding its Langmuir nickel project near Timmins, Ont. Without divulging the content of the emails, likely containing unsubstantiated claims about Langmuir’s potential, Inspiration said it had no relations with the individuals behind the campaign or prior knowledge of the emails.

Vancouver-based Coalspur Mines jumped 40% to 7¢ after receiving provincial approvals and a licence for the first phase of its Vista thermal coal project in Alberta. The Alberta energy regulator approved the construction and operation of the project under the Environmental Protection and Enhancement Act and the Water Act. It also gave Coalspur a water licence to operate, as well as divert groundwater and surface water each year. The company is now waiting for a mineral surface lease from the province. First coal from phase one is expected by the end of 2016. The project should have an initial production rate of 6.5 million tonnes a year, before nearly doubling in phase two.

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