TSX drops, June 22-26

The S&P/TSX Composite Index fell 1.84% to 15,189.00 during the June 22-26 trading week. The S&P/TSX Global Mining Index rose 4.24% to 88.72, and the S&P/TSX Global Base Metals Index climbed 2.25% to 89.36. Spot gold jumped US$27.70 per oz., or 1.59%, to US$1,771.50 per oz., and the S&P/TSX Global Gold Index rose 5.73% to 334.47.

Shares of Endeavour Mining climbed $2.47 to $33.12. Canadian regulators gave the go-ahead for Endeavour to acquire Semafo. Regulators determined there was no need for a national security review of the $1 million deal, announced in March this year. The boards of both companies and Endeavour’s shareholders had already approved the business combination, expected to close on or around July 1. The transaction brings together six mines with strong cash flow into one portfolio. It also allows for the optimization of assets and pipeline growth. The combined gold miner will have an estimated annual production of 1 million oz. per year. The companies began a dialogue last year to evaluate the merits of a business combination, but were unable to reach a deal. Talks resumed earlier this year.

Barrick Gold rose $2.11 to $35.36. The gold miner struck an expanded joint-venture agreement with Loncor Resources over two permits held by a Loncor subsidiary within the Ngayu gold belt in the Democratic Republic of the Congo. The terms of the new joint-venture are similar to Loncor’s ongoing joint-venture agreement with Barrick that covers over 1,894 sq. km of ground in the Ngayu gold belt, 220 km from the Kibali gold mine operated by Barrick. Under the terms of the new agreement, Barrick will manage and fund all exploration on the JV permit properties until the completion of a prefeasibility study.

In other news, Barrick announced it has started exploration and fieldwork at Precipitate Gold’s Pueblo Grande project, which is adjacent to Barrick’s Pueblo Viejo gold-silver mine in the Dominican Republic. Barrick has started reviewing and validating an extensive database of field and desktop analytics, including historic drill results and existing geochemical and geophysical data from work conducted by Precipitate Gold and prior operators.

Shares of SSR Mining advanced $1.81 to $27.54. Independent proxy advisory firms Institutional Shareholder Services (ISS) and Glass Lewis have recommended that shareholders vote in favour of the proposed merger of SSR Mining and Alacer Gold. The proposed at-market merger of equals “appears to make strategic sense as it will result in the creation of a diversified gold producer with an experienced management team,” ISS reported.

Freegold Ventures jumped 55% to $1.24 per share – prompting the company to issue a news release stating that it was unaware of any material, undisclosed information that would account for the increase in the price of its shares or level of trading volume. In June, the company announced that drilling had recommenced on its Golden Summit project near Fairbanks in Alaska. It plans to complete a drill hole that was shut down at 165 metres in March due to Covid-19. Its Phase 1 program will include about 15 to 20 holes in a 10,000-metre program.