TSX slips, Aug. 15–19

Canada’s benchmark index retreated into negative territory, down 0.4% to 14,687.46. The S&P/TSX Global Mining Index fell 1.4% to 66.62. The S&P/TSX Global Gold Index lost 4% to close at 264.53, despite spot gold rising 0.4% to US$1,341.10 per barrel. The September contract for crude oil jumped 6% to US$48.52 per barrel.

Dynasty Metals & Mining soared 73% to 29¢ per share on a proposed financing with three directors of Goldgroup Mining. The directors, including Goldgroup’s CEO Keith Piggott, will use their own money to buy Dynasty shares for 15¢ apiece for gross proceeds of US$4 million. Dynasty, the operator of the Zaruma gold mine in Ecuador, will use the proceeds to pay some of its outstanding debt. Once the financing closes, Piggott will take on the role of CEO from Robert Washer.

Arizona Mining shares roses 26% to $2.07 on the back of drill results. The junior reported three exploration holes from the ongoing program at the Taylor zinc-lead-sulphide deposit on its Hermosa project in Arizona. Along with other recently drilled holes, this expands the February 2016 maiden resource of 39.4 million inferred tonnes grading 11% zinc equivalent. The best new hole intersected eight mineralized intervals, including 7.3 metres of 22.4% zinc, 24.5% lead, 0.4% copper and 415.6 grams silver per tonne. This interval was within a broader, 17.7-metre section that assayed 12.2% zinc, 12.1% lead, 0.2% copper and 211.5 grams silver.

Shares of Prophecy Development advanced 24%, or 84¢, to $4.30. The firm published assay results from the first 40 samples collected from the Paca exploration program at its Pulacayo project in Bolivia. The company had collected 233 samples, but due to a backlog at the testing laboratory, it picked the 40 most promising samples for assaying. It notes one chip channel sample had silver grades that surpassed the detection limit of 1,500 grams per tonne. This sample will undergo another assay using a higher detection limit, with results expected within three weeks.

Energizer Resources jumped 23% to 8¢ per share after closing a $6.7-million private placement at 7¢ per share. Investment funds managed by Goodman & Co. Investment Counsel, an affiliate of Dundee Corp., bought $6 million of shares under the offering, bringing its interest in Energizer to just below 20%. Sprott Asset Management and other shareholders were the remaining investors. Most net proceeds will help finish a Front-End Engineering Design study, aimed at determining potential development path options for the Molo graphite project in Madagascar.

Dynacor Gold Mining climbed 21%, or 53¢ per share, to $3.05, after the firm recorded its twenty-first straight profitable quarter in the second half. It earned US$1.1 million, or US3¢ per share, compared to US2¢ per share a year ago, as gold production and sales grew. During the quarter, Dynacor finished building its Veta Dorado processing facility in Peru.