Gold Summary for Jan. 7, 2015
2015-01-07 18:10 MT - Market Summary
by Stockwatch Business Reporter
New York spot gold fell $8.20 to $1,211.10 Wednesday, its first down day of the year, as the U.S. dollar rose against the euro. In Canada, the TSX Venture Exchange lost 1.95 points to 683.65 and the TSX Gold Index lost 2.30 points to 162.18.
Major Canadian gold miners followed bullion lower. Goldcorp Inc. (G) slipped 19 cents to $23.81,Eldorado Gold Corp. (ELD) fell 31 cents to $7.92, Alamos Gold Inc. (AGI) dropped 37 cents to $9.59 and Agnico Eagle Mines Ltd. (AEM) dropped 61 cents to $33.69.
Shawn Wallace's Auryn Resources Inc. (AUG) rose nine cents to $1.19 on 57,000 shares. The company has $9-million in working capital, 18 million shares outstanding and is looking to buy a mineral exploration property somewhere in North America, South America or Eurasia. Mr. Wallace closed a $7.31-million financing last month. He was aiming for only $3.25-million, but had to double Auryn's offering after increased demand following the sale of his and Ivan Bebek's Mexican gold explorer, Cayden Resources Inc., to Agnico Eagle Mines. Agnico paid $205-million, or $3.79 for each Cayden share, entitling Mr. Wallace and Mr. Bebek to about $12-million in cash and Agnico stock. As disclosed on SEDI, they each owned just over three million Cayden shares. Since the sale, Mr. Bebek has been taking it easy, joking that he is unemployed, while Mr. Wallace has been busy raising money for Auryn. Mr. Wallace also serves as a director of Asanko Gold Inc. (AKG: $1.82) (formerly their Keegan Resources Inc.), which is building a $295-million gold mine in Ghana. Mr. Wallace owns 3.31 million shares of Auryn and Mr. Bebek owns 2.4 million.
Simon Ridgway's Radius Gold Inc. (RDU: $0.10) asked for a halt this morning, pending a change of business. The company spent the past 10 years exploring for gold in Latin America and would now like to become an investment company. Radius has $10-million in working capital, 86 million shares outstanding and has been operating as a de facto investment company since 2012, when it acquired 4.8 million shares of B2Gold Corp. (BTO: $2.29) at a deemed price of $3.46 a share, or $16.6-million. B2Gold issued the stock as payment for two Nicaraguan gold properties, and Radius sold two million of the shares for $5.7-million. It still owns 2.8 million, which are worth $6.4-million today. Radius also holds an $800,000 debenture from Southern Silver Exploration Corp. (SSV: $0.035), convertible into 16 million shares, as well as three arm's-length investments: one million shares of Focus Ventures Ltd. (FCV: $0.18), eight million shares of Medgold Resources Corp. (MED: $0.08) and 9.8 million shares of Rackla Metals Inc. (RAK: $0.015). All three of these little horses are part of the Ridgway stable. Mr. Ridgway is also a director of Cordoba Minerals Corp. (CDB: $0.13), which has $5-million in working capital, thanks to the money-raising efforts of its chairman, Ari Sussman. Cordoba plans to drill in Colombia this year.
John Budreski's Morien Resources Corp. (MOX) added 4.5 cents to 21.5 cents on a busie-than-usual 382,000 shares. The company, which was 10 cents a year ago, is one of the few juniors that has money ($3-million in working capital) with another $5.5-million on the way when Morien sells its 25-per-cent working interest on the Donkin coal project in New Brunswick to the Cline Group LLC. Morien will keep a production royalty of between 2 per cent and 4 per cent and use the cash finding new projects. The Donkin royalty will be Morien's second production royalty; its first is on a gold mine. The company is entitled to 1.5 per cent of the gold-in-concentrate produced at Banks Island Gold Corp.'s (BOZ: $0.19) Yellow Giant mine in British Columbia. Yellow Giant is a small operation, providing Morien with only $22,000 so far, but this should rise as Banks Island increases its production.
Morien is Mr. Budreski's first public company, although he has spent the past 25 years in the resource sector, first as an investment banker and then as vice-chairman of Cormark Securities. He is a director of Sandstorm Gold Ltd. (SSL: $4.46) and Alaris Royalty Corp. (AD: $33.25), and in the summer he joined EnWave Corp. (ENW: $1.18) as its chairman. EnWave has an industrial-scale dehydration technology which is available for licence. It also sells Moon Cheese, a dehydrated-cheese-ball snack. Moon Cheese has been on U.S. grocery shelves for over a year, and chairman Moon Cheese recently brought it to Canada through Save On Foods.
Peter Leger's Teras Resources Inc. (TRA), unchanged at 8.5 cents on 44,000 shares, has appointed Mike Padley as director of finance, in hopes he can help close a $1.2-million financing. Teras is trying to sell 15 million shares at eight cents, and plans to use the money drilling at its Cahuilla gold property in Imperial County, California. Most of Cahuilla sits on the Torres Martinez Indian Reservation, but the business-minded band has caused the company no trouble. It is busy running a nearby casino. It also tried exploring at Cahuilla before, drilling 54 holes in the early 1990s, before optioning the property to a Pink Sheets listing. Teras optioned Cahuilla from that company in 2010.
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