The Toronto Stock Exchange ended the Nov. 22-28 report period 21.87 points better at 10,939.21. The gold index yo-yo’d 1.12 points lower to 234.46, as the yellow metal tacked on US$7.05 to settle at US$496 per oz. The diversified miners fell 2.7 points to 372.17 despite across-the-board gains by the base metals.
Dofasco was the most heavily traded metal stock, with more than 29 million shares soaring $19.61, or 44% to $63.98. The steelmaker has agreed to a $61.50-per-share takeover offer from Germany’s ThyssenKrupp. The friendly bid trumped an earlier hostile bid from Luxembourg-based Arcelor by $5.50 per share.
Other percentage performers were: Atna Resources, up 72, or 70% to $1.75; Globex Mining Enterprises, plus $1.03, or 64% to $2.64; Queenston Mining, 28, or 45% better at 90; and Campbell Resources, which jumped 4.5, or 39% to 16.
Atna recently cut 147.5 ft. grading 0.97 oz. gold per ton during underground drilling on the Ogee discovery at the Pinson project in Nevada. Likewise, partners Globex and Queenston encountered 6 metres of 25.4 grams gold on their Wood-Pandora property in Quebec. The pair subsequently acquired the adjacent Central Cadillac gold mine property. Campbell upped its resource estimate for the Corner Bay copper project, also in Quebec. Campbell will put its plan of arrangement to a creditor vote on Dec. 6.
The report period also saw some solid gains from Canada’s income trust units, with the Noranda Income Fund gaining $1.33, or nearly 13% to make $11.80. The Labrador Iron Ore Royalty Income Fund jumped $2.93, or 12.3% to $26.67 and the Fording Canadian Coal Trust surrendered some earlier gains to end $1.83 better at $45.59.
The surge was powered by the federal government’s announcement that it would not impose taxes on income trusts but rather lower dividend taxes in an attempt to level the playing field between the two. Some market watchers are calling for the Ontario Securities Commission or RCMP to investigate the high volume of trading in trust units prior to the announcement.
Dynatec fell 26, or 18.5% to $1.14 on 12.4 million shares after partner Implats signalled its intention to exit the Ambatovy nickel-laterite project in Madagascar. The South African platinum producer had agreed to cover a portion of Dynatec’s equity portion of project financing and debt guarantees.
Placer Dome has advised its shareholders to shun Barrick Gold‘s hostile bid in what is shaping up to be an increasingly nasty battle. Placer rose 56 to $25.81 while Barrick slipped 36 to $31.81. Newmont, one of just a handful of possible rival bidders, is reportedly currently kicking Placer’s tires. Newmont shed a dime to $55.71.
River Gold Mines and Wesdome Gold Mines have agreed to combine at a rate of 0.65 of a Wesdome share for every River share. River owns the Eagle River gold mine near Wawa, Ont., while Wesdome is redeveloping the Kiena project in Quebec. River fell a penny to 94 as Wesdome dropped a nickel to $1.65.
Meanwhile, Iamgold sold off 11 gold royalties in Canada, Mexico, and Bolivia to U.S.-based Battle Mountain Gold Exploration for $15.85 million in cash and 12 million shares. In the end, Iamgold will own 15% of Battle Mountain. Iamgold retains a 1% royalty on the Diavik mine in northern Canada.
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