TSX Venture remains in the doldrums, Nov. 16-20

The S&P/TSX Venture Composite Index dropped 3.28 points en route to a 520.65-point weekly close. Canadian markets are finding it hard to generate positive momentum amid a prolonged slump in commodity prices. Meanwhile, Statistics Canada reported retail sales fell 0.5% in September to $43 billion, and industrial production struggled for a second straight month, after registering a 0.2% decline in October. In international economic news, the Federal Reserve reported that U.S. manufacturing output rose 0.4% last month.

December contracts for gold bullion hit a four-month low after dropping US$4.40 en route to a US$1,076.40 per oz. close. January contracts for West Texas Intermediate lost US35¢ before finishing at US$40.39 per barrel. Copper futures took another beating, as March contracts for the red metal lost 5%, or US11.6¢, en route to a US$2.05 per lb. close.

Honey Badger Exploration led the volume-traded category after releasing a field update at its LG Diamonds project in the James Bay region of Quebec. The company saw over 9 million shares change hands before it closed up 1¢, at 2¢ per share.

On Nov. 19 Honey Badger reported that it had done a “preliminary analysis” of historic geophysical data at LG, with seven potential kimberlite targets on the property. The company says anomalies LG-2, LG-13 and LG-23 are “high-priority” targets due to “circular shapes, steep walls and shallow depths that are characteristic of kimberlites.” The targets coincide with kimberlite indicators found in nearby lake sediments.

Nighthawk Gold had a busy week after reporting a private placement valued at $850,000. The company lost 2¢ on 5.8 million shares traded, before closing at 5¢ per share.

On Nov. 20 Nighthawk reported it had closed a private placement offering of secured notes that pay interest at a fixed rate of 12% annually. Note holders were also issued an aggregate 3.4 million purchase warrants, exercisable at 15¢ per share through May 2017.

After the transaction, Northfield Capital held a 15.6% equity stake in the company on a non-diluted basis. Nighthawk recently completed a 3,000-metre drill program at its Indin Lake gold property in the Northwest Territories.

Callinex Mines was on the rise after unveiling exploration plans for its wholly owned Pine Bay volcanogenic massive sulphide (VMS) project near Hudbay Minerals’ 777 mine and processing facilities in Flin Flon, Man. 

Callinex shares jumped 7¢ on 703,000 traded, before finishing at 30¢ per share.

On Nov. 16 Callinex said it would drill 10,000 metres at Pine Bay in 2016. The company aims to follow up on its VMS discovery near the Sourdough deposit.