Junior explorer jumps on gold assays

Stockhouse Canadian Small and Micro-cap Stock Report for Tuesday, February 17, 2009

TORONTO (SHfn) - Near surface gold was good news for some shareholders Tuesday, while a small miner soared on an amended PP.

Hawthorne Gold (TSX: V.HGC, Stock Forum) shares climbed as much as 26% before closing up 7% to 40.5 cents on Tuesday after the micro cap miner and Eureka Resources (TSX: V.EUK, Stock Forum) reported results from 15 additional diamond drill holes from the 2008 exploration program on the Frasergold property in British Columbia, which included 58.24 metres grading 1.017 grams per tonne (g/t) gold near surface.

As well, shares of Bow Valley Energy (TSX: T.BVX, Stock Forum) shot up 66% to 49 cents as the oil and gas producer/explorer said it has entered into an arrangement agreement for Dana Petroleum to acquire Bow Valley for 50 cents per share in cash, valuing the transaction at $240 million, including the assumption of net debt, liabilities and other obligations.

Superior Mining International (TSX: V.SUI, Stock Forum) shares surged 75% to 10.5 cents after the junior explorer reported that it has received assay results from an exploration drilling program at its Mangalisa property in South Africa, which included 0.45 metres of 45.8 g/t gold and 3.79 kg/t uranium.

Raymor Industries (TSX: V.RAR, Stock Forum), meanwhile, announced that, after representation from the management, the court awarded on February 13, an extension to the Notice of Intent allowing the company seven additional days to finalize its financing. Raymor stock popped 100% to two cents.

Shares of Minera Andes (TSX: T.MAI, Stock Forum) jumped 56% to 75 cents after the junior miner said it is amending the terms of the private placement with Robert R. McEwen. Last week, the company announced that McEwen would purchase more than 121 million common shares of Minera at 33 cents per share, for proceeds of $40 million. Now, Minera says as a first step, McEwen will purchase 18,299,970 common shares of the company at $1 per share for proceeds of $18,299,970, which will be used to satisfy the cash call in respect of the company's 49% interest in the San José Project. McEwen will then assume the company's US$17.5 million loan owing to Macquarie Bank. After it is assumed by McEwen, the bank loan will be convertible at his option into common shares of Minera at $1 per share.

And, Goldeye Explorations (TSX: V.GGY, Stock Forum) Tuesday reported the most recent results obtained on its Tyrrell Township drill program in northern Ontario, which included an intersection of four g/t gold over 17.5 metres. Its shares added 14% at four cents.