TORONTO (SHfn) – Merrex Gold (TSX: V.MXI, Stock Forum) shares jumped 16% to 64 cents on Tuesday after the micro cap miner reported that IAMGOLD (TSX: T.IMG, Stock Forum) has advised Merrex of its intention to assume the operatorship of the Siribaya Gold Project in Mali, West Africa, at the end of the current exploration program and that planning for the transition is underway. The Merrex-IAMGOLD earn-in option agreement provides that after $5.5 million of exploration expenditures IAMGOLD may elect to become the Siribaya Gold Project operator and IAMGOLD has advised that it intends to do so. IAMGOLD is also considering building a bridge across the Faleme River enabling year-round road access for personnel, supplies and equipment. In December 2008, Merrex closed an option agreement with IAMGOLD pursuant to which IAMGOLD may incur up to $10.5 million in exploration expenditures over four years, to earn a 50% interest in the Siribaya Gold Project, of which $3.0 million was spent during 2009 with a further $2.5 million exploration program currently underway.
As well, shares of Burntsand (TSX: T.BRT, Stock Forum) shot up 53% to 14.5 cents as the provider of technology consulting services said it has entered into a definitive agreement by which Open Text (TSX: T.OTC, Stock Forum) will acquire all of the issued and outstanding common shares of Burntsand through a Burntsand shareholder approved amalgamation with a subsidiary of Open Text under the Canada Business Corporations Act. Based on the terms of the definitive agreement, Burntsand shareholders will receive 15 cents in cash for each Burntsand common share, for a total consideration of $11 million.
Horizon North Logistics (TSX: T.HNL, Stock Forum), meanwhile, announced that it has signed an agreement for the design, manufacture, transportation and installation of a 2,700 person construction camp for a major Canadian resource project. The camp is comprised of approximately 830 units with completion scheduled for May 2012. Total value of the contract is $104 million with 45% of the work scheduled to occur in 2010, 50% in 2011 and 5% in 2012. Horizon North stock popped 17% to $2.04.
Shares of Western Potash (TSX: V.WPX, Stock Forum) slid 25% to 46 cents after the junior explorer reported that further to the company's news regarding the detection of hydrocarbons on the Milestone property reported in the February 2, 2010 news release, Western Potash will no longer continue the petroleum and gas exploration program that was proposed in the March 31, 2010 news release.
And, coal and uranium miner Polo Resources (TSX: T.POL, Stock Forum) Tuesday said it has reached a preliminary agreement to buy all of the shares of coal miner Caledon Resources PLC at an exchange ratio of 11.4 Polo shares for every Caledon share. The two companies said a merger would create a coal-focused natural resources company with existing production and interests in exploration and development opportunities across the world. Polo shares rode 41% higher to 12 cents.
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