TSX Venture struggles, June 29 – July 3

The S&P/TSX Venture Composite Index closed near a three-month low, as commodity futures struggled and markets remained volatile owing to the debt crisis in Greece. Meanwhile, U.S. government data indicated the country’s economy added 220,000 jobs in June and the country’s unemployment rate dropped to 5.3%.

August contracts for gold bullion hit a four-week low after losing 1.5%, or US$17.60, and closing at US$1,167.80 per oz. Energy futures also took a beating, as August contracts for West Texas Intermediate crude oil dropped 5.5%, or US$3.26, en route to a US$55.52-per-barrel close. September contracts for copper declined US1.4¢ before finishing at US$2.62 per lb.

Metanor Resources led the volume-traded category after releasing assay results from its Bachelor gold mine, 225 km northeast of Val-d’Or, Que. The company saw nearly 8.5 million shares change hands, though its valuation stayed at 6.5¢ per share.

On June 30 Metanor announced it had cut 1.5 metres grading 18 grams gold per tonne from 110 metres deep in drill hole 12-168. The intersection is less than 80 metres south of the company’s level 12 infrastructure in an “unknown sector” that had not seen previous drilling. Metanor reported that three more holes will be drilled to verify continuity and orientation.

North Country Gold was the target of a takeover offer from Auryn Resources, gaining 1.5¢ on 6.6 million shares traded to close at 13¢, while Auryn was off 3¢ to $1.47 on 173,000 shares traded. On June 30 Auryn said it intended to acquire North Country for 13.8 million shares at $1.48 per share, or $20.4 million and a 66% premium. The main asset in the deal is the 100% interest in the Committee Bay project in Nunavut, which includes 662 sq. km along the Committee Bay greenstone belt, 180 km northeast of Agnico Eagle Mines’ Meadowbank gold mine.

Laurion Mineral Exploration  landed a $6-million investment from a Dallas-based oil and gas private equity group. Shares gained 1¢ on 5.4 million traded to close at 3¢. The private placement holds subscriptions in three tranches: a first tranche of $1 million for 20 million shares; a second of $2.5 million for 50 million shares; and a third of $2.5 million for 48.3 million shares. The transactions would result in the group owning 51% of Laurion’s outstanding shares.

President and CEO Cynthia Le Sueur-Aquin said the deal confirms that the bear market for precious metals is “coming to an end.” The partnership is reportedly the “first step” in fast-tracking Laurion’s Ishkoday polymetallic project — 220 km northeast of Thunder Bay, Ont. — to production.