Stockhouse Canadian Small and Micro-cap Stock Report for Friday, July 23, 2010
TORONTO (SHfn) – B2Gold Corp. (TSX: T.BTO, Stock Forum) shares climbed as much as 11% to $1.63 on Friday after the junior miner said it has reached an agreement with Kinross Gold to sell to a subsidiary of Kinross, B2Gold's right to acquire an interest in the Kupol East and West Licenses in Russia. Kinross will make an upfront payment of US$33 million to B2Gold, payable upon closing of the transaction and contingent payments of US$15 million for each incremental million ounces of gold of National Instrument 43-101 compliant proven and probable reserves contained by the Kupol East and West License areas, up to a maximum of nine million ounces of gold. In addition, B2Gold will receive payments equal to 1.5% of Net Smelter Returns from the commencement of production from the area covered by the Kupol East and West Licenses, subject to a right for Kinross to repurchase the royalty for US$30 million.
As well, shares of Yukon-Nevada Gold (TSX: T.YNG, Stock Forum) rose 10% to 33 cents as the gold junior announced that as of July 12, 2010, it has recommenced underground exploration drilling at its gold producing Jerritt Canyon property in Nevada. In addition, the company announced that Mr. William Hofer has been recently appointed as the Chief Geologist at Jerritt Canyon.
New Island Resources (TSX: V.NIS, Stock Forum), meanwhile, has agreed to merge with Mountain Lake Resources (TSX: V.MOA, Stock Forum). Shareholders of New Island will exchange their issued common shares of New Island for new common shares of Mountain Lake on the basis of one new share of Mountain Lake for every 4.25 shares of New Island. The two companies believe that the real value of its combined assets “will be unlocked in the years ahead through organic growth as cash flow from production at the Pine Cove gold mine is deployed to explore and develop its other projects on the island of Newfoundland.” New Island stock popped 28% to 11.5 cents.
And, Meritus Minerals (TSX: V.MER, Stock Forum) Friday said it has entered into a drilling contract to test its gold project in Mongolia. The program will consist of from 32 to 35 HQ size diamond drill holes for a total of approximately 3000 meters. Its shares added 14% at 12 cents.
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