TSX Venture closes in the green, Sept. 14-18

The S&P/TSX Venture Composite Index had a bumpy ride, but gained 2.71 points en route to a 549.91-point close.

The uneven trading sessions followed the rise and fall of copper and oil futures, which started strong before stumbling later in the week. Markets dealt with uncertainty over a U.S. interest rate hike after the Federal Reserve deferred a decision on an increase until year-end, while Statistics Canada reported that the Canadian financial system gained 12,000 jobs in August, as full-time employment rose by 54,400.

November contracts for West Texas Intermediate crude oil briefly hit a four-week high of US$47, before taking a dive and finishing relatively flat at US$44.87 per barrel. December contracts for copper dropped 2%, or US5¢, en route to a US$2.40 close, while December contracts for gold gained 3.1%, or US$34.20, before closing at US$1,138.10 per oz.

Abitibi Royalties approached the top of the value-added column after acquiring a royalty near an advanced-stage Canadian gold project. The company gained 13¢ on 23,100 shares traded before closing at $2.39 per share. Abitibi paid $12,000 in cash for a 2% net smelter return royalty on privately held claims located 2 km west of New Gold’s Rainy River project, 65 km northwest of Fort Frances, Ont. The junior gets 15% of any cash proceeds if the project is sold or joint-ventured. New Gold is targeting production in 2017 at Rainy River, which could produce 325,000 oz. gold and 480,000 oz. silver annually over a 14-year mine life.

Explorer Kennady Diamonds led the value-lost category after announcing a $48-million private placement to advance its Kennady North project in the Northwest Territories. The company dropped 55¢ on 271,000 shares traded, before finishing near a 52-week low of $2.85 per share. Kennady said the placement would include shares priced at $2.75, though part “may be brokered” and “include the issuance of flow-through shares” at $3.40. The proceeds are earmarked for work through 2017, including drilling and bulk sampling, evaluation, a preliminary economic assessment, a definitive feasibility study and permitting.

Junior Ashburton Ventures had the most trades after announcing a project acquisition in the Clayton Valley lithium district of Nevada. The company saw 20 million of its shares change hands, but lost 1¢ before finishing at 2¢ per share. On Sept. 15 Ashburton reported it had acquired a 100% interest in the Elon lithium claims in exchange for 5 million shares.