Stockhouse Canadian Small and Micro-cap Stock Report for Thursday, March 25, 2010
TORONTO (SHfn) – Pure Nickel (TSX: T.NIC, Stock Forum) shares powered 56% higher to 23.5 cents on Thursday after the micro cap explorer reported that Japan’s ITOCHU Corporation has confirmed its confidence in the MAN Alaska nickel-copper-platinum group elements project and will proceed with exercising its option to vest its interest. Based on results of the 2009 exploration season ITOCHU has agreed to an acceleration of expenditures over the next three years. The partners have agreed to a $7.5 million budget for 2010, which represents an almost 90% increase over the original $4 million budget. Pure Nickel will continue to earn a 10% management fee, remain as operator, and receive a vesting fee of $500,000.
As well, shares of Longford Energy (TSX: V.LFD, Stock Forum) added 22% at 33 cents as the oil and gas explorer/producer announced that it has entered into a subscription agreement with Quantum Partners Ltd., a private investment fund managed by Soros Fund Management LLC, whereby Quantum has agreed to purchase 19,000,000 units of the company at a price of 30 cents per unit for total gross proceeds of $5.7 million. Upon completion of the offering, Quantum will hold approximately 14% of the issued and outstanding common shares of Longford.
Zapata Energy (TSX: V.ZCO, Stock Forum), meanwhile, said it has entered into a reorganization and investment agreement that provides for a $17.0 million non-brokered private placement as well as the appointment of a new management team, key employees and board of directors. The new management group will be led by Dan O'Neil as President and Chief Executive Officer, Max Lof as Chief Financial Officer and Dan Brown as Chief Operating Officer. Mr. O'Neil, Mr. Lof and Mr. Brown were key members of the management team that grew Breaker Energy from zero to over 7,000 boe/d of production in under five years. Zapata stock popped 43% to $7.42.
Shares of Azure Dynamics (TSX: T.AZD, Stock Forum) surged 17% to 27 cents after the developer of hybrid electric and electric powertrains for commercial vehicles reported fourth-quarter revenue of $4.4 million, compared to $2.6 million in the fourth quarter of 2008. Net loss period totaled $8.0 million, or two cents a share, compared with a loss of $14.5 million, or four cents a share, during the same period last year.
And, North American Gem (TSX: V.NAG, Stock Forum) Thursday announced that it is nearing full production at its #1 Mine in Kentucky with shipments of coal being sent to market daily. At the current rate of production NAG is currently on pace to produce and sell approximately 8,000 tons of coal per month with the ability to further increase production. NAG shares climbed 28% to 13.5 cents.
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