US stocks advance, Aug. 18-22

U.S. equities had a strong run during the Aug. 18–22 week. The Dow Jones Industrial Average jumped 338 points to 17,001.22. The S&P 500 Index rose 33 points to 1,988.40, while the tech-heavy Nasdaq Composite Index climbed 74 points to 4,538.55, marking the third consecutive week of gains for all three indexes. However, the spot gold price dropped US$23.70 per oz. to US$1,280.80.

Toronto-based miner Banro advanced 44% after revealing a comprehensive financing plan to loosen up its balance sheet and to bring its Namoya gold mine to commercial production. The financing includes a US$35.5 million liquidity backstop facility, of which US$27.7 million is immediately available, and US$121 million in gold stream arrangements on its Namoya and Twangiza gold mines, both in the Democratic Republic of the Congo. Banro added US8¢ to close at US26¢ on 51 million shares traded.

Timberline Resources fell 20% to US10¢ on no news. In the previous week, the Idaho-based gold explorer closed its acquisition of a subsidiary of Wolfpack Gold by way of a plan of arrangement. Under the transaction, Timberline issued 42.9 million shares in exchange for some of Wolfpack’s gold properties in Nevada and C$5.3 million in cash. Timberline will use the acquisition funds to advance its Lookout Mountain gold project in Nevada.

Alderon Iron Ore has ended BNP Paribas’ role as the lead arranger for a senior debt financing needed to build Alderon’s US$1.3-billion Kami iron ore project in the Labrador Trough. Alderon has named Endeavour Financial as its financial advisor, tasked with forming a banking syndicate to provide senior debt for Kami.  Shares fell 9% to US$1.12.

Great Panther Silver named Ali Soltani as its new chief operating officer. Soltani has over 30 years of experience with Newmont Mining and Phelps Dodge. He will play a main role in ramping up production at the company’s new satellite mine, San Ignacio, which is close to Great Panther’s producing Topia silver-gold-lead-zinc mine in Durango, Mexico. Shares fell nearly 8% to US$1.19.

The week’s top value gainer was frac sand miner U.S. Silica Holdings, climbing US$3.94 to US$64.50 on no news.

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