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Pacific Potash (V.PP) falls 31% after long trade halt lifted: Canadian market movers

Elizabeth Walters Elizabeth Walters, Stockhouse
2 Comments| October 30, 2013

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Here are the most active stocks on Wednesday mid-morning on the TSX and TSX Venture Exchange.

On Wednesday, the top TSX mover was Kinross Gold Corp. (TSX: T.K, Stock Forum). The stock was up 2.8% and was trading at $5.55 on volume of 2.6 million.

On October 9, the gold miner announced that commercial production had begun at Dvoinoye, a high-grade, low-cost underground gold mine located in Russia's Chukotka region. Dvoinoye is expected to produce between 235,000 and 300,000 of gold equivalent ounces annually during its first three full years of production.

Yamana Gold Inc. (TSX: T.YRI, Stock Forum) was the second most active stock on the TSX. It gained 4.4% and was trading at $10.67 on volume of 2.4 million shares.

On October 29, Yamana announced its financial and operating results for the third quarter 2013. During the quarter the company produced 306,935 gold equivalent ounces, an increase of 4.0% over the second quarter of 2013. Net earnings were $43.5 million or $0.06 per share.

Pacific Potash Corp. (TSX: V.PP, Stock Forum) was the volume leader on the TSX Venture Exchange. It plummeted 30.8% after a long time trade halt was lifted, and was trading at $0.09 on volume of 4.2 million, despite positive financing news.

On October 29, the potash focused exploration and development company entered into a non-binding memorandum of understanding (M.O.U) with a Chinese State Owned Enterprise (S.O.E). The M.O.U outlines the proposed terms of a transaction pursuant to which the S.O.E will subscribe for $10 million by way of an unsecured convertible debenture of common shares from Pacific Potash convertible at a price of $0.37 per common share. The S.O.E's aggregate beneficial ownership of common shares will not exceed 19.9% of the issued and outstanding common shares of Pacific Potash at the time of exercise of these conversion rights. The convertible debenture shall bear interest at the rate of 5.0% per annum, payable semi-annually and shall mature on the date which is two years from the date of issuance. Upon completion of this financing Pacific Potash will have raised a total of $16.35 million year to date to drive the company's business plan. The proceeds from the convertible debenture will be used for development of Pacific Potash's Amazonas Basin Potash exploration program, consisting primarily of drilling, and for general working capital.

The second most active stock on the TSX Venture was Aston Energy Inc. (TSX: V.ALO, Stock Forum). It soared 100% and was trading at $0.01 after 3.7 million shares changed hands.

The junior oil producer had no related news to explain the high volume in trading.


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