TSX Venture rallies to six month high, Feb. 29-March 4

The S&P/TSX Venture Composite Index broke a six-month high, jumping 4%, or 24.33 points, to a 562.39-point close, on the back of surging commodity prices.

Spot gold rallied 2.9% to a one-year high at US$1,277.50 per oz., whereas three-month London Metal Exchange copper contracts rose US$229 per tonne, or 4.9%, to US$4,909.5 per tonne, after a solid U.S. jobs report.

Brent crude jumped 10.3% to a US$38.72-per-barrel close as major producers prepare to meet and discuss a production freeze, and U.S. output showed signs of declining.

True Gold Mining saw 24 million shares traded before closing up 10¢ at 48¢ per share, on plans that it will combine with Endeavour Mining, a West African-focused gold producer.

Under the deal, Endeavour will acquire all the issued and outstanding shares of True Gold valued at 57¢ per share totalling $240 million on a fully diluted in-the-money basis, which represents a 33% premium based on the 20-day, volume-weighted average of each company.

The deal would pool True Gold’s developing Karma gold mine in Burkina Faso, West Africa, with Endeavour’s four producing gold mines and its construction-ready Houndé project.

Prospect generator Carube Copper jumped 150%, rising 9¢ to a 15¢ close after news that joint-venture partner OZ Minerals has approved the first phase of exploration at the Above Rocks project in Jamaica since striking a deal in December 2015.

The South Australian miner is committed to spending at least $500,000 in exploration on the copper-gold porphyry property this December, and can earn up to 70% by making $6.5 million in additional payments and expenses over the next five years.

Reservoir Minerals topped the value-added category, gaining 89¢ to a $4.89-per-share close, after news that 55% joint-venture partner Freeport-McMoRan would sell part of its interest in Reservoir’s Serbian Timok project to Lundin Mining for US$262.5 million.

The project contemplates developing a high-grade massive and semi-massive sulphide deposit and an underlying, deep-seated copper-gold porphyry deposit, 9 km south of the famous, century-old RTB Bor copper-gold mining and smelting complex.

Once the transaction is complete, Lundin will acquire 100% of Freeport’s interest in the high-grade upper zone of the Cukaru Peki deposit, 100% of Freeport’s interest in all mineral licences and 28% of Freeport’s interest in the lower zone, which is characterized by porphyry-style mineralization.

Lithium X Energy announced plans to earn into Aberdeen International’s Sal de los Angeles lithium-potash brine project in Argentina, driving shares up 30¢ to a $1.19 close.