Columbus’ Shares Rise Following Nordgold Deal
News: Shares in Canadian exploration company Col u mbus Gold increased by 33% on September 18 2013 following news that the company had signed an option agreement with Dutch mining company Nordgold , Mineweb report. The deal, which will see Nordgold acquire a 50.01% stake in Columbus ' Paul Isnard gold project in French Gui a na, increased the comp any ' s shares to CAD0.4 0 (US$ 0.39 ) each .
BMI View: We forecast Canadian gold production to increase 1.6% per annum on average between 2013 and 2017, reaching 3.54mn ounces in 2017, as the sector attracts steady investment. Although the country's favourable business environment and gold deposit potential should bring continued exploration interest, lower average gold prices may lead to mine development plans put on hold.