TSX Venture rises during the Feb. 7-11 trading week

The S&P/TSX Venture Exchange rose 10.12 points or 1.16% to 868.77. Spot gold climbed US$17.60 per oz. or 0.96% to US$1,831.15 per ounce.  

Latin Metals climbed 42.9% to 15¢. On February 7, the company announced that a subsidiary of Barrick Gold had signed an option agreement to acquire up to an 85% interest in Latin Metal’s Cerro Bayo, Cerro Bayo Sur and La Flora properties in Argentina’s Santa Cruz province. The prospect generator’s properties are subject to an underlying option agreement Latin Metals signed in 2019 with the underlying vendor to earn a 100% stake in the three properties. To earn an initial 70% interest, Barrick must pay US$2.32 million in cash to the underlying vendor and US$750,000 in cash to Latin Metals. It must also spend US$5 million on exploration and prepare a preliminary economic assessment. To earn an additional 15% for a total of 85%, Barrick must pay another US$425,000 and “sole fund all costs” to deliver a prefeasibility study. Keith Henderson, CEO of Latin Metals, said in a press release that Barrick would be a good partner that can bring “considerable technical and financial capability” to the project. He also noted that if both options are exercised, Barrick’s total investment would amount to about $8.5 million, “which will help to limit dilution to Latin Metals’ shareholders.”  

Three Valley Copper dropped 1¢ to close at 8¢ per share. On February 3, the company announced that it would temporarily halt the start of the block caving operation at its Papomono mine in Chile after a discussion with its senior secured lenders. The company wants Papomono to come into production responsibly, it said. The company had halted construction at Papomono on January 25, along with operations at its Minera Tres Valles complex, 3 km away from Papomono within the same mine complex, due to the consistent underperformance of its Don Gabriel open pit mine, the company’s primary source of ore. Michael Staresinic told The Northern Miner at that time that it might take three to four months for operations to restart. “We are working with our lenders and our advisors to determine a strategy that is in the best interest of the project,” he said at the time.  

Solis Minerals jumped 50% to 24¢. On February 8, the company said that copper sulphides were observed during the logging of the first two holes (MODD001 and MODD002) of a diamond drill program at its Mostazal copper project in Chile. Jason Cubitt, the company’s CEO, said in a press release that the drill program at Mostazal was off to a “fantastic start.” The first drills were designed to test the near surface manto-style mineralisation encountered in historic drilling, the company said. “Our logging has confirmed the presence of widespread alteration and disseminated copper sulphide mineralisation,” said Cubitt.