Market news: Toronto Stock Exchange

The S&P/TSX Composite Index was up 98 points to 12,725.09 points for the period.

The lift to Canadian equities came on the back of optimism about the U.S. “debt ceiling,” and an improved U.S. labour market. Further from home, better economic growth numbers in China and solid industrial production numbers out of Japan also helped lift investor confidence.

The S&P/TSX Global Gold Index was off a point to 295.56 despite the price for the yellow metal being US$28 higher, as it closed out the period at US$1,687 per oz. gold.

The S&P/TSX Capped Diversified Metals & Mining Index was also down, falling 9 points to 1,035.21 points despite the price for copper rising 2¢ to $3.68 per lb.

The long pursuit of Aurizon Mines turned hostile with Alamos Gold saying it would pay $780 million in cash and shares for the junior. The offer works out to $4.65 per share — a 40% premium over Aurizon Mines’ closing share price on Jan. 9. The deal would combine two single-asset gold miners with mines in safe jurisdictions, production of 320,000 to 370,000 oz. gold per year over the next two years and 500,000 oz. production by 2016. Aurizon shares were up 36% to $4.64, while Alamos shares were off 8% to $15.61 for the period.

Shares of Eco Oro Minerals were on the comeback trail, as the company moved closer to advancing the Angostura gold-silver project in northeastern Colombia. Most of the Angostura deposit sits outside of recently approved regional park boundaries. Eco Oro had the largest gains by percentage points for the period, as its stock surged 122%, or 77¢, to close Jan. 18 at $1.40. The company says that 90% of the deposit lies outside of the proposed Santurban regional park, and that the park limits won’t impede development.

CanAlaska Uranium bolstered its market cap by closing a deal for prospective ground in the Athabasca basin. The company acquired three claim groups covering 66.87 sq. km in the Patterson Lake area of Saskatchewan’s famed uranium region. CanAlaska is reviewing plans for exploration and looking for a joint-venture partner. The company’s shares were up 69% to 30¢ for the period.

Investor’s didn’t like the pricing of an equity financing done by Labrador Iron Mines. The company will issue units at $1.05 each, with each unit made up of a share and half of a warrant. A full warrant has a strike price of $1.35. The company would use the money to fund pre-stripping, mining and processing costs. Also weighing the stock down was Desjardins Securities lowering its target for the company to $1.25 from $2, which echoed an earlier CIBC downgrade. Shares of Labrador Iron Mines finished the period off 30% at 99¢.

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