The Bank of Canada kept its target for the overnight lending rate at 0.5% and estimated that the wildfires in Alberta would knock 1.25 percentage points from real gross domestic product in the three months ended June 30. Canada’s benchmark stock exchange advanced 1.3% to finish at 14,105.23, while the S&P/TSX Capped Diversified Metals & Mining Index climbed 0.95% to 511.74. Spot gold fell 3.1% to US$1,212.80 per oz., and the S&P/TSX Global Gold Index dropped 7.96% to 204.37.
Suncor Energy announced that there had been no damage to its assets from the Alberta blaze and that it had remobilized its employees to support the staged restart of its operations in the Regional Municipality of Wood Buffalo. Suncor also said it was ramping up construction at its Fort Hills mine. Suncor’s shares jumped $1.40 to $35.90.
Shares of Globex Mining Enterprises climbed 39% to 45¢ after announcing it had optioned two of its Quebec lithium projects (Chubb and Bouvier) to Great Thunder Gold Corporation. Great Thunder will pay Globex $60,000 over six months and deliver 2.4 million shares. Globex receives a 2% gross metal royalty on all production from the properties and an underlying 1% net smelter return royalty. Separately, Globex also acquired 11 new lithium exploration projects.
A bid for Mines Management by U.S.-listed silver miner Hecla Mining sent Mines Management up 35% to $1.12 per share. Under the deal, each outstanding share of Mines Management will be exchanged for 0.2218 of a Hecla share. The offer is a 41% premium using both companies’ 10-day, volume-weighted average price on May 20. Mines Management’s Montanore silver-copper project in Montana is 80 km from Hecla’s Lucky Friday mine in Idaho and 16 km from its Rock Creek project.
Cameco’s shares rose 34¢ to $15.26. Cameco and Kazatomprom — Kazakhstan’s state-owned importer and exporter of uranium and nuclear fuel for power plants — signed an agreement to restructure and enhance their joint-venture Inkai project, an in situ recovery uranium mine in southern Kazakhstan. Cameco owns 60% of the JV and Kazatomprom owns the rest. Under the agreement, the JV could ramp up production to 10.4 million lb. uranium oxide (U3O8) per year, which is up from 5.2 million lb. U3O8. Subject to adjustments, Cameco’s ownership would change to 40% and Kazatomprom’s to 60%. The partners will also complete a feasibility study on building a uranium refinery in Kazakhstan capable of producing 6,000 tonnes of uranium per year, as uranium trioxide. Kazatomprom will also have the option to obtain UF6 conversion services at Cameco’s Port Hope facility for 10 years. Depending on Cameco’s commercial support, Cameco’s interest in JV Inkai may be increased to 44% and its ownership stake in the refinery would also be adjusted from 28.3% to 29.3%.
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