Junior explorer jumps on acquisition agreement

Stockhouse Canadian Small and Micro-cap Stock Report for Monday, March 7, 2011

TORONTO (SHfn) – Copper Canyon Resources (TSX: V.CPY, Stock Forum) shares climbed 26% to $1.06 on Monday after the micro cap explorer reported that it has entered into a binding letter agreement providing for NovaGold Resources (TSX: T.NG, Stock Forum) to acquire all of the outstanding common shares of Copper Canyon by way of a plan of arrangement. Under the arrangement, Copper Canyon shareholders will receive common shares of NovaGold on the basis of 0.0735 of a NovaGold common share for each common share of Copper Canyon, plus one common share of a newly-incorporated company (SpinCo) for every four Copper Canyon common shares. SpinCo will hold substantially all of Copper Canyon's assets other than certain cash and Copper Canyon's 40% joint venture interest in the Copper Canyon copper-gold-silver property.

As well, shares of Prima Colombia Hardwood (TSX: V.PCT, Stock Forum) shot up 21% to 29 cents as the forest products firm announced that it has entered into a letter of intent with Pacific Lumber S.AS. to join forces in Colombia to further develop Prima as a major international tropical hardwood timber development, production and marketing company. The letter of intent with Pacific anticipates the potential addition of rights to harvest up to 31.5 million cubic meters pursuant to timber concessions to be obtained by Prima through the efforts of Pacific (or approximately 10 times Prima's current timber reserves). In consideration of these efforts, Prima will issue up to a maximum of 60 million common shares in the capital of Prima, which currently would represent 17.89% of the issued and outstanding shares of Prima after their issuance.

Avrupa Minerals (TSX: V.AVU, Stock Forum), meanwhile, reported results from recent work at the Covas tungsten project in Portugal. Results from the soil sampling for multi-element analyses suggest further potential for tungsten mineralization in a number of places around the 3 kilometer by 2 kilometer Dome, particularly in the southeastern third of the presumed multiple intrusion complex. Areas of gold anomalies coincide with tungsten anomalies in the southeast part of the Dome, as well as around several known and possible skarn showings on the west and northwest sides of the Skarn Ring. Values for tungsten reach 2300 ppm (with background results less than 10 ppm), and values for gold in the soil samples reach 129 ppb (background values are less than 10 ppb gold). Avrupa stock popped 19% to 51 cents.

And, Wildcat Silver (TSX: V.WS, Stock Forum) Monday said it has entered into an agreement with Silver Wheaton Corp. for a $13 million private placement of 10 million shares of Wildcat at a price of $1.30 a share. As part of the agreement, Silver Wheaton has a right of first refusal over any silver stream or royalty financing that Wildcat may choose to sell from its Hardshell project located in Arizona. Wildcat shares added 12% at $1.32.

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