TSX ends Nov. 15-19 week higher on easing concerns over Ireland’s debt

With investor mood dampened by concerns over China’ s tightening fiscal policy and Europe’s woes with Ireland and Iceland, the Toronto Stock market closed the Nov. 15-19 week higher, led by the financial sector.

The TSX Composite index rose 206.09 points, or 1.6%, to 12,956.33, as banks advanced on prospects of earnings growth. Commodity prices softened as China ordered lenders to lock up more of their money with the Central Bank, stepping up efforts to pull excess cash out of the economy to combat inflation, which hit a 2-year high in October. Investors are concerned China’s move to slow inflation will stifle global economic growth.

While the spot price for copper declined 9 cents to finish the week at US$3.82 per lb., the Capped Metals & Mining index tacked on 32.84 points to close up 2.6% at 1,312.86. Gold was off US$13.20 an ounce, or 1%, ending the report period at US$1,352.30. The Global Gold index followed suite, slipping 0.8% to 412.64 points.

Shares in Ventana Gold rocketed to $13.59, up $3.43 on the week, after the EBX Group, led by Brazilian billionaire Eike Batista, made an unsolicited $1.2-billion cash offer worth $12.63 per share. Ventana is a Vancouver-based exploration company with mineral rights to 46 sq. km of ground in northeastern Colombia. The company’s flagship La Bodega discovery is host to 3.5 million oz. gold, 19.2 million oz. silver and 85 million lbs. copper, based on an inferred resource of 27.8 million tonnes grading 3.9 grams gold, 21.5 grams silver and 0.14% copper. EBX already owns almost 20% of Ventana.

Vancouver-based Western Coal jumped $3.49 to close out the week at $10.76 on news of a potential merger with Walter Energy, a Florida-based coal producer. The proposal, subject to 2-week due diligence period and a definitive agreement, calls for Western shareholders to receive a mixture of cash and Walter shares valued at $11.50 per Western share.

Grande Cache Coal, an Alberta producer of metallurgical coal for the steel industry, closed up $1.11 at $9.08, while Cline Mining, a junior that is preparing to restart the New Elk coal mine in Colorado, tacked on 67 cents at $3.14. Cline recently closed a $57.6-million equity offering priced at $1.95 per share.

Farallon Mining, one of the most active issues, ended the trading period at 78 cents for a gain of 13 cents, after agreeing to a friendly $409-million takeover bid by Belgium-based Nyrstar. The 80 cents per share cash offer represents a 32% premium to a 20-day average trading price.

Anatolia Minerals Development was down 86 cents at $7.44 after warning the market its scheduled first gold pour from the Copler gold mine in Turkey may be postponed until early in the New Year due to unforeseen delays in construction of critical path items. In order to ensure the company has sufficient liquidity on hand, it entered into a $25-million, three-year credit facility with Standard Bank.