TSX Venture loses ground, Aug. 31-Sept. 4

The S&P/TSX Venture Composite Index returned to negative territory during trading, as it dropped 3.06 points en route to a 552.61-point close.

With commodity futures down, the European Central Bank revamped its quantitative easing program and said it would use all tools available to bolster growth. Meanwhile, the U.S. Labor Department reported that the country’s unemployment rate fell to a seven-year low in August, even with slower-than-expected job growth.

December contracts for gold lost nearly 1%, or US$11, before closing at US$1,120.60 per oz. October contracts for West Texas Intermediate crude oil tumbled 6.4%, or US$3.15, en route to a US$46.05-per-barrel close, and December contracts for copper lost US1.8¢ to US$2.32 per lb.

Junior Nevada Exploration had major gains after closing a non-brokered private placement and carrying out a “corporate reorganization.” The company surged 400%, or 20¢, on 131,705 shares traded, before finishing at 25¢ per share. On Aug. 31 Nevada Exploration completed a 1-for-10 share consolidation and closed a $660,000 private placement, wherein it issued 13.2 million units at 5¢ per unit. Each unit consists of one share and one full purchase warrant priced at 10¢ for three years.

Nevada Exploration also issued 939,150 units to settle $47,000 in loans, and another 2.5 million shares at 5¢ to clear debts relating to salaries accrued by management. The company is advancing five projects across 80 sq. km along the Battle Mountain trend in Nevada.

Gold Canyon Resources led the volume-traded category after a business combination agreement with newly formed First Mining Finance. The company saw nearly 24 million of its shares change hands, as it gained 16¢ en route to a 27¢ close.

The deal values Gold Canyon at $56.2 million, or 35¢ per share, and gives First Mining control of the wholly owned Springpole gold project in Ontario’s Red Lake mining district. The project hosts 128.2 million indicated tonnes of 1.07 grams gold and 5.7 grams silver per tonne, and 25.7 million indicated tonnes at 0.83 gram gold and 3.2 grams silver.

Producer Arian Silver reported delays in mine development at its San Jose processing plant, 55 km southeast of Zacatecas, Mexico. The company dropped 26¢ on 600,675 shares traded, to 20¢ per share.

On Aug. 31 Arian delayed phased commissioning at its plant and pursued remedial work on its tertiary crusher. The company will also need a new mine plan after a steep drop in silver prices, along with “additional working capital.” Arian reported cash and equivalents of US$778,000 at the end of June.