TSX Closes Up Nearly 180 Pts, Boosted By Gold and Energy Stocks; Lake Shore Gold Most Active
Toronto stocks closed up nearly 180 points or 1.5% on Tuesday, boosted by gold (Lake Shore Gold, Kinross) and energy stocks (Talisman and Suncor) on higher commodity prices, and the release of positive data out of Europe and the United States. U.S. housing starts hit a 1.5 year high in November while German business sentiment reportedly rose sharply in December.
Futures on crude oil, Canada's biggest export, rallied 3.6% to US$97.22 a barrel in New York. Gold rose for the second time in three sessions as a weakening dollar boosted demand for the metal as an alternative asset.
Most actively traded was Lake Shore Gold Inc (LSG.TO), up 10 cents or nearly 9% at $1.25 with nearly 16 million shares traded. December 14, Lake Shore Gold said it signed a formal option agreement with Revolution Resources Corp. through which Revolution may acquire up to 100% of the Company's four Mexican property positions, including the Universo, Montana de Oro, Lluvia de Oro and La Bufa properties. As a result of signing the formal agreement, Revolution will issue to LSG common shares representing a 9.9% equity interest in Revolution. Included in the terms of the agreement are requirements that will allow Revolution to acquire a 60% interest in the Company's Mexican properties as well as additional requirements through which Revolution can acquire a 100% interest in some or all of the properties.
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