The S&P/TSX Venture Composite Index dropped 1.5%, or 8.41 points, before closing at 541.50 points. The Canadian dollar hit an 11-year low during the trading period at US$74.76, while oil and base metal futures also finished in the red. Federal Reserve Chair Janet Yellen said the U.S. central bank was on track to raise interest rates in the near term, while Chinese manufacturing dropped the most in over six years in September, as orders and production contracted.
November contracts for West Texas Intermediate crude oil lost nearly 2.1%, or US98¢, en route to a US$45.70-per-barrel close, while December contracts for copper plummeted 4.4%, or US10.6¢, before finishing at US$2.29 per lb. Gold futures were the bright spot, as December contracts for bullion jumped US$9.30 en route to a US$1,146 per oz. close.
Pacific Iron Ore was a big riser after news of a cash influx, thanks to selling its Ontario gold portfolio to a privately owned, B.C.-based exploration company. The company gained 200%, or 26¢, on 478,400 shares traded, before finishing at 39¢ per share.
On Sept. 21, Pacific Iron reported an agreement wherein it will sell the St. Anthony’s gold project — as well as other Ontario properties containing copper and lithium, within the Kenora Patricia mining district — to St. Anthony Exploration and Mining for $3.5 million in cash and a 2% net smelter return royalty. Pacific Iron’s flagship asset is the Pearson iron ore project on Vancouver Island.
Gold producer Metanor Resources led the volume-traded category on the exchange after announcing assays from a surface drill program at its Bachelor gold complex, 225 km northeast of Val-d’Or, Que. The company saw 8.1 million of its shares change hands before it closed up 2¢ at 6¢ per share.
On Sept. 22 Metanor released results from drilling collared at surface, 925 metres south of its Bachelor underground mine. The result is part of an exploration campaign following up on a geophysical survey in late 2014. Hole 15-14 cut 26 metres grading 10.1 grams gold per tonne from 6.4 metres deep. The company has mobilized a second drill rig at the target, where it has identified a “large, induced-polarization anomaly.”
In financing news, junior Pacific Booker Minerals topped the value-added column after completing a non-brokered private placement valued at $555,600. The company gained 39¢ on 14,600 shares traded, en route to a $2.40-per-share close.
On Sept. 21 Pacific Booker announced it had completed financing after amending conditions due to a sharp fall in share price. The company issued 277,800 units priced at $2 per unit, with each unit consisting of one share and one purchase warrant exercisable at $2.50 for two years. Pacific Booker had initially proposed a financing at $5 per share.
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