Precious Metals Weekly Round-Up: Gold and Silver Rise on Weaker Dollar

Both gold and silver made moves upwards on Friday (June 22), due to a weaker greenback that retreated after an 11-month peak on profit-booking.

As of 9:44 a.m. EST, the yellow metal was up 0.10 percent, trading at US$1,268.20 per ounce, keeping below the precious US$1,300 mark. As for the white metal, it edged up 0.35 percent, trading at US$16.34 per ounce as of 9:48 a.m. EST, after falling to its lowest level since May 2 in the previous session.

The metals rally was offset by ongoing trade war concerns that are keeping investors at bay from the commodities.

“The trade war is affecting gold for the time-being. Unless the dollar weakens, do not expect gold to move too high,” said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Both platinum and palladium were little changed for the week, trading at US$868 per ounce and US$950 per ounce respectively as of 12:00 a.m. EST. Overall, the precious metals were headed for weekly declines of over 3 percent.

Precious metals top news stories

Our top precious metals stories this week dealt with Bonterra Resources (TSXV:BTR) acquiring Metanor Resources (TSXV:MTO), Japan’s Sumitomo (TYO:8053) purchasing a 5-percent stake in the Yanacocha gold mine in Peru and Falco Resources (TSXV:FPC) entering into a silver stream transaction with Osisko Gold Royalties (TSX:OR,NYSE:OR).

1.Bonterra to Acquire Metanor in Strategic Expansion Move

Bonterra is set to acquire Metanor with the intention of creating an advanced Canadian gold exploration and development corporation. The newly combined company’s first and main goal will involve expanding its presence in the Urban Barry Quebec gold camp.

“Bonterra has been an extremely successful exploration company and must continue to evolve and participate in growth opportunities. We have quickly and efficiently discovered and developed the Gladiator deposit over the past two years, and now look to put our exploration skills and experience to work on the larger combined land package,” stated Nav Dhaliwal, president and CEO.

2. Sumitomo Buys 5-percent Stake in Yanacocha Gold Mine for U$48 Million

Sumitomo purchased a 5-percent stake in the Yanacocha gold mine in Peru for US$48 million in order to boost its metals portfolio.

After Sumitomo’s purchase, the mine will be owned by three companies, with US top gold-producing company Newmont Mining (NYSE:NEM) holding 51.35 percent and Peruvian miner Buenaventura (NYSE:BVN, FRA:MBU) claiming 43.65 percent. Newmont and Buenaventura currently own 54.05 percent and 45.95 percent respectively.

3. Falco’s Horne 5 Project Receives C$180-million Commitment from Osisko

Falco Resources entered into a silver stream transaction with Osisko Gold Royalties through which Falco will receive C$180 million to help fund its Horne 5 project

In addition to the silver stream transaction, Falco also reported that Osisko will purchase a secured debenture having a principal amount of C$7 million from Falco.

“We are pleased to announce this financing with Osisko. The funds will be instrumental as Falco looks forward to building a high-quality, profitable, and environmentally safe project that will deliver significant economic benefit to all of our stakeholders,” stated Luc Lessard, president and CEO.

Also in the news

Also making news this week, Matador Mining (ASX:MZZ) completed a AU$5-million capital raise to finish the acquisition of the Cape Ray gold project in Canada, the company announced on Thursday (June 21).

“We are delighted to have finalised the equity component of the Cape Ray acquisition. The funds raised will now allow the company to progress towards formal completion of the acquisition,” said Matador executive director Scott Patrizi.

In April, Matador acquired the project from Benton Resources (TSX:BEX) for a total cash consideration of AU$3.5-million and eight-million fully paid ordinary shares, as well as 833 333 options.

Also in the news was the Ghanaian government, which granted regulatory approval for the completion of Gold Fields’ (JSE:GFI) joint venture with Canada-based Asanko Gold (TSX:AKG).

Gold Fields and Asanko announced in March that they would buy a 45-percent interest in the Asanko gold mine in Ghana for US$185-million.

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Securities Disclosure: I, Nicole Rashotte, hold no direct investment interest in any company mentioned in this article.