Stockhouse Canadian Small and Micro-cap Stock Report for Thursday, December 19, 2013 VANCOUVER (SHfn) –
Taipan Resources Inc. (
TSX: V.TPN,
Stock Forum) climbed 11.5% to 29 cents as investors assessed the news that through its wholly-owned Kenya-based subsidiary Lion Petroleum Corp., the oil and gas junior has completed the previously announced farm-out agreement with Premier Oil Investments Ltd., a subsidiary of
Premier Oil plc (
PMOIY,
Stock Forum), whereby Premier has acquired a 55% participating interest in Block 2B onshore Kenya. Taipan retains a 45% interest and operatorship during the exploration phase in Block 2B. Under the terms of the farm-out agreement Premier will carry Taipan through the cost of the work program for the first additional exploration period totalling a gross cost of up to $29.5 million. This includes the drilling and testing of the Pearl-1 prospect that is estimated to have gross prospective resources of 200 million barrels of oil. The remaining lead inventory on Block 2B in addition to Pearl-1 is capable of delivering in excess of 500 million barrels of oil gross. Premier will also provide a guarantee for the minimum work and expenditure obligations for the first additional exploration period on Block 2B of US$13 million and will pay Taipan $1.0 million in back costs. Taipan will retain operatorship of Block 2B during the exploration phase with Premier having the right to assume operatorship of any development.
True Gold Mining Inc. (
TSX: V.TGM,
Stock Forum) was up 1.3% to 39 cents. The stock is reacting to news the Burkina Faso Council of Ministers has approved the issuance of the Karma exploitation permit to Riverstone Karma SA, the company's Burkina Faso subsidiary. The Burkina Faso Council of Ministers provided the approval during a meeting on Dec. 18, 2013. The permit awaits final signature by the President of Burkina Faso. The exploitation permit is equivalent to a final mining permit, and will allow True Gold to develop the Karma mine.
Champion Iron Mines Ltd. (
TSX: T.CHM,
Stock Forum) lost 1.6% to 31 cents after the exploration and development company reported that
Cartier Iron Corp. (
C.CFE,
Stock Forum) earlier today announced an initial mineral resource estimate for the Penguin Lake project located within what Cartier Iron refers to as the recently consolidated Round Lake property, one of the Gagnon Holdings referred to by Champion as "Cluster 3" in the Southern Labrador Trough. The Gagnon Holdings are currently being explored pursuant to an option agreement with Champion whereby Cartier Iron was granted the right to earn a 65% interest in the iron-rich mineral concession. As reported by Cartier Iron, the mineral resource estimate reported 531.1 million tonnes grading 33.1% total Iron of in-pit inferred resources at a 15% total Iron cut-off grade. The estimate is based on 10 drill holes totalling 3,315 metres, completed by Cartier Iron between January 16 and February 23, 2013.
Aurcana Corp. (
TSX: V.AUN,
Stock Forum) lost 31.1% to $0.71 after reporting the Board of Directors has elected to put the Shafter project, located in Presidio County, Texas, on "care and maintenance" due to low silver prices. "Aurcana's management and its board of directors are very disappointed that in spite of many of our employees' best efforts, the prevailing economic conditions, in particular low silver prices, have caused the company to suffer significant losses from the Shafter project's operations, resulting in an unsustainable drain on the company's treasury,” said Lenic Rodriguez, President and CEO. As a result of the decision to place the Shafter project on care and maintenance, the company has determined that it will not immediately proceed with the planned updated resource estimate on the Shafter project, which was referenced in the company's news release dated
December 12, 2013.
CBM Asia Development Corp. (
TSX: V.TCF,
Stock Forum) lost 37.5% to five cents after the company provided an update of its coalbed methane (CBM) exploration activities in Indonesia. On December 12 CBM Asia signed a US$30 million loan with warrant memorandum of understanding (MoU) funding package with a prominent European family office which included a US$15 million letter of credit facility required by ExxonMobil under the Barito Basin farm-in umbrella agreement. The MoU was presented to ExxonMobil on December 13. However, CBM Asia was advised by ExxonMobil on December 16 that it planned to exit the Indonesian CBM industry. CBM Asia is reviewing a draft termination agreement offered by ExxonMobil. The company has requested compensation for the extensive planning and technical support the company has provided to ExxonMobil to help it fulfill its production sharing contract obligations during the past 18 months.
Separately, today the company signed a letter of intent with an Indonesian oil and gas company to negotiate a joint venture/farm-in deal on four coalbed methane production sharing contract’s in South Kalimantan. The company continues to work with the European family office to arrange a funding package to support any agreement entered into.
| Select Canadian Small/Micro-cap Advancers (as of 4:00 PM Eastern) |
| Crailar Technologies Inc. (V.CL, Stock Forum) |
43.75% |
| Fission 3.0 Corp. (V.FUU, Stock Forum) |
27.27% |
| LX Ventures Inc. (V.LXV, Stock Forum) |
20.45% |
| Lorus Therapeutics Inc. (T.LOR, Stock Forum) |
11.54% |
| Sandvine Corporation (T.SVC, Stock Forum) |
9.43% |
| Select Canadian Small/Micro-cap Decliners (as of 4:00 PM Eastern) |
| CBM Asia Development Corp. (V.TCF, Stock Forum) |
-37.50% |
| Aurcana Corporation (V.AUN, Stock Forum) |
-31.07% |
| Palliser Oil & Gas Corporation (V.PXL, Stock Forum) |
-26.03% |
| Martinrea International Inc. (T.MRE, Stock Forum) |
-20.70% |
| Detour Gold Corporation (T.DGC, Stock Forum) |
-9.35% |