News

November 22, 2008

That Was The Week That Was … In Canada

By Our Canadian Correspondent

Minews. Now over to our Canadian correspondent for a look at how the Canadian markets performed during the previous week.

CC. Tax loss selling seemed to be the story of the week on the Canadian markets, with the gloomy economic outlook prompting investors to move out of the financial stocks and into the gold miners. Once all the trading was done for the week the TSX Ventures Exchange, home to more junior exploration companies than anywhere else in the world, had nevertheless dropped by a robust 12.22 per cent, but the TSX Gold Index had rallied by an impressive 17.58 per cent.

The big news of the week came from HudBay Minerals which has agreed to buy Lundin Mining in what’s been termed “a friendly business combination” that would see Lundin shareholders get 0.3919 Hudbay shares for each Lundin share held.

Minews. Based on the market reaction, it looks like the Hudbay shareholders don’t like this C$814 million all-stock deal.

CC. Well, paying a premium for a company that is closing down operations and whose best asset is in the Democratic Republic of Congo probably...