Resource News

Several companies on the TSX Venture Exchange had a promising start to 2015. Samco Gold was the top gainer, followed by Encanto Potash, Sandspring Resources, Tirex Resources and Alloycorp Mining.

Several companies on the TSX Venture Exchange had a promising start to 2015.

Samco Gold (TSXV:SGA) was the top gainer, followed by Encanto Potash (TSXV:EPO), Sandspring Resources (TSXV:SSP), Tirex Resources (TSXV:TXX) and Alloycorp Mining (TSXV:AVT).

Samco Gold

Top gainer Samco Gold rose 120 percent to trade at $0.77 last week on news that an Argentinian court has quantified damages due the company from Northern Orion Resources for breach of contract at $244 million. Of this award, Samco Gold is entitled to receive $88.4 million, and further options mean the company could receive as much as $194 million. The legal breach of contract case has been in progress since 2004, and the Argentinian Commercial Court of Appeals found Northern Orion breached its contract in 2013.

Encanto Potash 

Encanto Potash, a company that has significant potash resources in various stages of development with its First Nations partners in Canada, had no news to report to explain its rise last week. However, according to AgWeb, the end of 2014 saw flooding in Russian potash mines, which means North American producers have the opportunity to fill the supply gap ahead of spring planting. That may have contributed to the company’s gains of 63.64 percent; it ended the week at $0.09.

Sandspring Resources 

Junior gold company Sandspring Resources gained 33.33 percent last week to trade at $0.12. There was no Sandspring-specific news to explain the company’s rise, although the new year’s rising gold prices are worth noting.

Tirex Resources 

Tirex Resources is an exploration and development company working in Albania that now aims to transition to production. Its latest news came in November 2014, so there was not a clear reason for its share price to rise 32.35 percent to trade at $0.23.

Alloycorp Mining 

Alloycorp Mining, formerly known as Avanti Mining, gained 25 percent to trade at $0.05 last week. At the very end of 2014, the company announced that it has entered agreements to extend the maturity dates of its amended and restated loan agreements and resource capital funds. The new loan agreements will be extended from December 31, 2014 to March 31, 2015. These loans have to do with the Kitsault molybdenum project, located in British Columbia, in which Alloycorp holds a 100-percent interest through its wholly owned subsidiary Avanti Kitsault.

Once it has been developed, the project is expected to be one of the world’s largest molybdenum producers. That will advance Alloycorp’s goal of becoming a major supplier to the steel industry.


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