Market awaits outcome of Goldcorp-Glamis saga

The report period Dec. 22-28 was short because the TSX closed down at 1 p.m. on Dec. 24 for the holidays, and trading did not resume until Dec. 29. The price of gold closed at US$444.40 per oz. in New York on Dec. 28. At Dec. 24, the price of gold had risen $1.25 to close at $442.20, and the gold index was up less than a point to close at 211.62. The diversified metals and mining index was up 0.85 of a point at 265.06 points, while the S&P TSX composite index rose 50 points to end at 9,287.40.

Thistle Mining traded more than 10 million shares, falling from the radar on Dec. 22 when the stock fell to 0.5. The company plans to restructure, and Meridian Capital, a private investment company, will hold 70% of the company’s new issue.

Goldcorp will be giving its shareholders a vote on whether to accept Glamis Gold‘s all-share bid for Goldcorp, or not. Glamis is offering 0.89 of one of its shares for each Goldcorp share; the bid is contingent on Goldcorp’s dropping its all-share buyout of Wheaton River Minerals. Goldcorp and Wheaton have negotiated a $35-million breakup fee if the deal between them falls through. The Goldcorp vote is set for Jan. 31. Goldcorp rose 4 to close at $18.75. Wheaton River added 10 to finish at $4.03 on a volume of 6.9 million shares. Glamis took a beating, falling US$4.35 to US$17.50.

Tahera Diamond rose 0.5 to close at 37 as 4.5 million shares crossed the floor. The company received a water licence from the Nunavut Water Board for its Jericho diamond project in Nunavut. The licence has yet to be approved by the Minister of Indian and Northern Affairs; a decision is expected within 45 days. Land leases for both the Inuit-owned land and Crown land are being worked out.

Petaquilla Minerals was up 35%, or 14, to end at 54 on a volume of 688,000 shares. The junior is about to resume drilling on its Molejon gold deposit in Panama, and a feasibility study is near at hand. The Minera Petaquilla copper-gold project is a joint venture with Teck Cominco and Inmet Mining.

QGX rose 28% to end at $2.82 on a volume of 726,000 shares. In early December, the company reported drill results from its Central Valley Zone (CVZ) in western Mongolia. Two of the holes cut about 5 metres grading 22 grams gold per tonne. Drilling is ongoing.

Virginia Gold Mines traded 728,000 shares and rose 18% to close at $4.06. The company reported more drill results from its lonore gold property in the James Bay area of Quebec, highlighted by 14.5 grams gold per tonne over 12.5 metres at a depth of 230 metres.

HudBay Minerals began trading on the TSX on Christmas Eve, using the symbol hbm. HudBay was formed following the purchase of Hudson Bay Mining & Smelting by OntZinc. In other words, OntZinc has changed its name to HudBay and no longer trades on the Venture Exchange. Its debut was heralded by a 9.4% rise in the share price to $2.20.

Queenstake Resources was up 0.5 on a volume of 3.2 million shares, to close at 48.5. The company intersected high-grade gold on the Starvation Canyon project, 20 km southwest of its Jerritt Canyon mill in Nevada.