Canada’s main stock index climbed as mining stocks rose on the back of higher commodity prices ahead of the annual Prospectors & Developers Association of Canada convention in Toronto. The four-day event started on March 1 and should draw in more than 25,000 participants from over 100 countries. The S&P/TSX Composite Index added 62 points, or 0.4%, to finish at 15,234.34. Spot gold advanced US$9.80 per oz. to US$1,213.70. The S&P/TSX Global Gold Index rose 3.5% to 182 points, while the S&P/TSX Capped Diversified Metals & Mining Index gained 4.8% to end at 729.58 points.
Banro shares jumped 51% to 28¢ after it signed definitive agreements for two gold forward sale transactions on its Twangiza mine, and one gold-streaming deal on its Namoya mine for combined proceeds of US$100 million. Both mines are in the Democratic Republic of the Congo.
Under each forward sale transaction, the buyer will provide US$20 million to buy 22,248 oz. gold from the Twangiza mine. The gold will be delivered over three years, at 618 oz. per month. The first US$20-million forward sale closed on Feb. 27, with the second US$20 million forward sale set to conclude in April.
The streaming transaction, where Banro will receive a US$60-million deposit for 10% of the life-of-mine gold from the Nayoma mine, should also close in April. Upon gold delivery, the buyer will pay US$150 per oz. gold.
Banro intends to use proceeds to repay the upcoming interest amount due on its outstanding 10% senior secured notes, and pay the notes issued under the 2014 liquidity backstop facility as well as to reduce its accounts payments and provide funds to bring the Namoya mine to commercial production, among other plans. The buyers under these transactions are funded in part by investment funds managed by Gramercy Funds Management.
Shares in Harte Gold received a boost after it reported a new gold zone, the Footwall zone, and Hemlo-style mineralization at the Contact zone of its Sugar zone property near White River, Ont., after its recent drill program. The Footwall zone is a new gold-bearing vein system, 50 metres east of the Sugar zone deposit. Near-surface drilling focused on an area where three grab samples returned high-grade assays, including 10, 11 and 626 grams gold per tonne. While mineralized drill intersections were narrow, they contained “crack-seal” veins, which occur at large gold deposits such as the Bell Creek mine in Timmins, Ont., the junior says. Harte is planning follow-up drilling on both the Footwall and Contact zones, which were identified as exploration targets through 2014 fieldwork. A bulk sample at Sugar zone should start shortly. Harte Gold climbed 37.5% to end at 6¢.
Be the first to comment on "TSX closes higher, Feb. 23-27"