Speculators took an interest in what one explorer said was its highest gold grades yet, while a coal play popped on a new discovery.
Stockhouse Canadian Small and Micro-cap Stock Report for Monday, March 2, 2009
TORONTO (SHfn) – Speculators took an interest in what one explorer said was its highest gold grades yet, while a coal play popped on a new discovery.
American Bonanza Gold (TSX: T.BZA, Stock Forum) shares climbed 23% to eight cents on Monday after the micro cap explorer said it has drilled the highest gold grades yet obtained at its 100% owned Copperstone Project in Arizona, which included a 5.8 meter structural zone with an average grade of 227.7 grams per tonne (g/t) gold.
As well, shares of Eagle Plains Resources (TSX: V.EPL , Stock Forum) shot up 29% to 18 cents as the junior miner and Prize Mining (TSX: V.PRZ , Stock Forum) announced that they have executed a letter of intent to form a joint-venture to facilitate the production of gold and conduct further exploration and development of the Yellowjacket Zone on the Atlin Gold Property in Columbia. Eagle Plains will purchase a 40% interest in the project by providing $2 million in working capital. Eagle Plains will, in turn, receive 60% of all net proceeds of production up to $2 million, at which time it will revert to a 40/60 working interest. Eagle Plains will have the option of increasing its working interest to 60% by making payments to Prize totaling $2 million by the sixth anniversary.
Masters Energy (TSX: T.MSY, Stock Forum), meanwhile, said Zargon Energy Trust (TSX: T.ZAR.UN, Stock Forum) will acquire all of the outstanding common shares of Masters at a price of $1.83 for each Masters common share, comprising, at the election of each shareholder, cash or trust units of Zargon or a combination thereof, subject to proration such that 20% of the total consideration will be paid in cash and 80% of the total consideration will be paid in Zargon trust units. The proposed transaction is valued at about $41.4 million, including the assumption of approximately $13.2 million of net debt (inclusive of adjustments and transaction costs). Masters stock popped 34% to $1.61.
Shares of Goldsource Mines (TSX: V.GXS, Stock Forum) powered 28% higher to $2.77 after the junior explorer reported a new coal discovery in the Split-Leaf area (sub-basin) on its wholly-owned Border Project near Hudson Bay, Saskatchewan, which intercepted thick coal intervals of 25.5 metres of continuous dull to bright coal within an approximately 35.3 metre coal zone, including partings.
And, Sulliden Exploration (TSX: T.SUE, Stock Forum) Monday announced that agreements have been reached to settle all outstanding issues in the disputes and litigation surrounding the Shahuindo gold/silver property in Peru. The agreements secure Sulliden's 100% registered and undisputed ownership of the Shahuindo property. Its shares jumped 10% to 75 cents