Stockhouse Canadian Small and Micro-cap Stock Report for Monday, March 22, 2010
TORONTO (SHfn) – Stornoway Diamond (TSX: T.SWY, Stock Forum) shares climbed 26% to 63 cents on Monday after the diamond explorer/developer reported the receipt of an updated preliminary assessment for the Renard Diamond Project in Quebec, which is a 50:50 joint venture with SOQUEM INC. Highlights of the study include a base case estimates of pre-tax net present value and internal rate of return at $885 million (at an 8% discount rate) and 24.8%, respectively, using a September 2009, diamond valuation of US$117/carat and a US dollar exchange rate of C$1.11.
As well, shares of Brett Resources (TSX: V.BBR, Stock Forum) shot up 35% to $2.82 as the junior explorer announced that it has entered into a definitive support agreement pursuant to which Osisko Mining (TSX: T.OSK, Stock Forum) will offer to acquire all of the issued and outstanding common shares of Brett for 0.34 of an Osisko common share for each common share of Brett held. The value of the total consideration offered to the shareholders is approximately $372 million calculated on a fully-diluted basis, implying an enterprise value of about $308 million.
Electrovaya (TSX: T.EFL, Stock Forum), meanwhile, said former Chrysler CEO, Thomas W. LaSorda, has joined its Board of Directors and has been appointed as Special Advisor to Electrovaya CEO, Sankar DasGupta. The company is a developer and manufacturer of Lithium Ion SuperPolymer battery systems. Electrovaya stock popped 13% to $1.07.
And, Forest Gate Energy (TSX: V.FGE, Stock Forum) Monday reported that it has completed production testing of the four shallow zones of the first well on its Crescent Junction property in Grand County, Utah, and thus has decided to abandon its first Utah well, which recovered oil at non-commercial rates. Its shares plunged 58% to 20.5 cents.
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