TSX slumps over July 11-15 period

The S&P/TSX Composite Index fell 72.16 points to 13,299.54 during the July 11-15 period as worries over U.S. and European debt grew. During the week, the U.S. Federal Reserve said it was not ready to stimulate the economy, while eight European banks failed stress tests.

The price of gold gained US$49.9 to US$1,594.10 per oz., which helped the Global Gold Index jump 17.77 points to 393.01. The Capped Metals & Mining Index, however, fell 11.06 points to 1,426.99.

Peregrine Metals was the week’s largest percentage gainer and most traded stock, surging 202% to $2.45 per share on 40 million shares traded. The jump came after U.S. miner Stillwater Mining tabled a US$487.1-million bid for the junior and its early-stage Altar copper-gold project in Argentina. The deal values Peregrine at $3.16 a share, a 400% premium to its closing price on July 8, the last trading day before the offer was announced. Peregrine shareholders would get 0.08136 of a Stillwater share and US$1.35 cash for each share held. The deal is expected to close by the end of September.

Intriguing gold-copper assays from Romania lifted Carpathian Gold‘s shares by 38% to 58¢. The junior released five drill holes and one in-fill hole from the Ciresata deposit at its Rovina Valley project. Highlights included: 314 metres grading 1.08 grams gold per tonne and 0.20% copper, including 65 metres at 1.49 grams gold and 0.25% copper; and 668 metres of 0.86 gram gold and 0.17% copper, including 198 metres at 1.13 grams gold and 0.17% copper. Along with Ciresata, the project hosts two other gold-copper porphyries.

Oromin Explorer saw its shares climb 26% to $1.16 as it released more drill results from its Oromin Joint-Venture Group gold project in Senegal, West Africa. The recent drilling tested the down-dip potential of the resource shells at the Golouma gold deposit, as well as lateral and depth expansion at the Kinemba, Sekoto, Saboraya and Koutouniokolla discoveries.

Northgate Minerals saw 24.1 million shares changing hands as it announced a $409-million all-share offer for Primero Gold, and gained 39¢ to close at $3.04. Primero shareholders will receive 1.5 Northgate shares for every Primero share held. The deal values Primero shares at $4.215, which is a 13.9% premium to its closing share price on July 12, the day before the offer was made. Northgate shareholders would own 69% of the combined company.

Goldcorp, which owns 35.5% of Primero, has agreed to support the arrangement. If the deal goes through, Goldcorp would receive 46.7 million or 11% of Northgate’s shares. The company gained $3.16 to close at $51.59 on 13 million shares traded.

In other news for the week, Goldcorp said it evacuated 380 employees at its Musselwhite gold mine due to forest fires in northwestern Ontario. The company has yet to update the situation.