TSX inches up, June 22-26

Canada’s benchmark index added 1% to finish at 14,808.09, despite concerns rising over the Greek debt crisis. The S&P/TSX Capped Diversified Metals & Mining Index, however, slipped 0.8% to 695.56. The S&P/TSX Global Gold Index fell 1.9% to 151.85, as the spot gold price tumbled 1.7%, or US$20 per oz., to US$1,180.30. 

Ivernia topped the percentage gainers’ list, soaring 50% to 2¢ per share after updating its special committee’s review of the business. The committee intends to complete a transaction, which may include a merger; selling Ivernia’s Paroo Station lead mine, which is currently on care and maintenance; and restructuring the company. While that review is ongoing, the committee has reached an agreement with the company’s primary lenders — Sprott Resource Lending partnership and Enirgi Group Corp. — to extend the five-month moratorium on interest and principal repayments that Ivernia received in February 2015. 

Royal Nickel shares jumped 46% to 40¢, after the firm received a major certificate of authorization for its Dumont nickel project in Quebec’s Abitibi mining camp. The firm has appointed Swedbank as its senior advisor on arranging a US$600-million senior bond financing with a five-year maturity for the Dumont project. 

On June 29, the company signed a letter of intent with Orion Mine Finance, a leading global mining investor. Orion will provide $12 million in exchange for a 0.8% net smelter return royalty in Dumont and 10 million Royal Nickel shares. The transaction should close around July 3. Royal Nickel will have a right to buy back half of the royalty for US$15 million after three years. 

Fertilizer producers Agrium and Potash Corp. of Saskatchewan were the biggest value gainers, jumping $4.98 to $128.44 per share and $1.44 to $38.61 per share. The boost came after PotashCorp confirmed that it made a private proposal to acquire German-based potash producer K+S Aktiengesellschaft. While the company hasn’t released details, Raymond James analyst Steve Hansen says the deal could help PotashCorp secure “uncontrolled greenfield supply” at the company’s Legacy project, noting it could delay the project to reduce supply and tighten the market. But Hansen notes the potential deal faces many “detractions, risks, and political and regulatory hurdles” that would make it hard to close.

Carpathian Gold was the most traded stock, finishing flat at 2¢ per share on 12.8 million shares traded. The troubled miner reported on June 24 that it would reduce operations at its RDM gold mine in Chile due to a water shortage. It predicts normal production will not resume until the next wet season in October.