Stockhouse Canadian Small and Micro-cap Stock Report for Friday, August 7, 2009
TORONTO (SHfn) – A Mexican gold buy generated plenty of speculation Friday, while two micro caps moved on takeover bids.
Gleichen Resources (TSX: V.GRL, Stock Forum) shares surged 64% to 90 cents on Friday after the micro cap miner said it has entered into an agreement to purchase Teck Resources' indirect 78.8% interest in the Morelos gold project in Mexico for US$150 million in cash plus Gleichen common shares, which will constitute 4.9% of Gleichen's issued and outstanding shares as at closing.
As well, shares of Grey Island Systems International (TSX: V.GIS, Stock Forum) moved up 27% to 35.5 cents after WebTech Wireless (TSX: T.WEW, Stock Forum) announced that it has entered into a definitive agreement for the acquisition of all the issued and outstanding common shares of Grey Island. Each Grey Island common share will be exchanged for 0.30 of a WebTech Wireless common share. The exchange ratio of 0.30 is based on an imputed price for WebTech Wireless shares of $1.40 and an imputed price for Grey Island of 42 cents per common share. The total transaction value is approximately $38 million.
Goldbrook Ventures (TSX: V.GBK, Stock Forum), meanwhile, said it has entered into a shareholder, joint bid and operating agreement with China’s Jilin Jien Nickel Industry Co., Ltd. and its wholly-owned subsidiary Jien International Investment Ltd. to make an all-cash take-over bid for Canadian Royalties (TSX: T.CZZ, Stock Forum) at a price of 60 cents a share in cash and all of the outstanding 7% convertible senior unsecured debentures due March 31, 2015, at a price of $600 per $1000 principal amount of debentures, plus accrued and unpaid interest up to, but excluding, the date the debentures are taken up under the take-over bid. Total cash consideration is approximately $148.5 million. Canadian Royalties stock popped 21% to 58 cents.
Shares of La Mancha Resources (TSX: T.LMA, Stock Forum) added 16% at $1.16 after the miner reported a 47% surge in second-quarter gold production, with cash costs per ounce down 21% year over year.
And, Hy-Drive Technologies (TSX: V.HGS, Stock Forum) late Thursday provided an update on company developments, which included test results conducted by Professional Services Industries, Inc. (PSI). To certify the results under this controlled testing format, Class 8 highway tractors powered by Caterpillar engines and equipped with Hy-Drive's Hydrogen Generating System (HGS) units, pulling loaded trailers were utilized. PSI concluded that the use of the HGS resulted in an overall average reduction of fuel consumption of 10.47%. Hy-Drive shares powered 26% higher to 49 cents on Friday.
| Top Canadian Small/Micro-cap Advancers (as of 4 PM Eastern) |
| Top Canadian Small/Micro-cap Decliners |