Stockhouse Canadian Small and Micro-cap Stock Report for Monday, October 18, 2010
TORONTO (SHfn) – Virginia Energy Resources (TSX: V.VAE, Stock Forum) shares climbed 33% to 38 cents on Monday after the micro cap explorer/developer announced the results of the 43-101 compliant Preliminary Economic Assessment (PEA) undertaken by Virginia Uranium Inc. on its Coles Hill Uranium Project in Virginia. Based on a US$65 per pound long-term selling price for uranium, the project provides an Internal Rate of Return (IRR) of 36.3%; and at a 7% discount rate the Net Present Value (NPV) of the project is US$404 million. Planned operations indicate an initial annual production from the Coles Hill Project of approximately two million pounds of yellowcake per year. By the end of 2010, VAE's indirect interest into the Coles Hill uranium project is expected to exceed 30%.
As well, shares of Antares Minerals (TSX: V.ANM , Stock Forum) shot up 47% to $6.58 as the junior miner said it has entered into a definitive agreement pursuant to which a wholly-owned subsidiary of First Quantum Minerals (TSX: T.FM , Stock Forum) will acquire all of the outstanding securities of Antares for a total consideration of approximately $460 million. Under the arrangement, each common share of Antares will be exchanged for (i) 0.07619 of a common share of First Quantum or (ii) a cash payment in the amount of $6.35, subject to an aggregate maximum cash consideration of $250 million.
Pantera Drilling Income Trust (TSX: T.RIG.UN, Stock Forum), meanwhile, reported that it has entered into an arrangement agreement whereby Western Energy Services (TSX: V.WRG , Stock Forum) will acquire all of the issued and outstanding units of Pantera in exchange for shares of Western. Under the terms of the transaction, Pantera unitholders will receive 21.9048 common shares of Western for each income trust unit of Pantera held, resulting in the issuance of approximately 226 million Western shares. The consideration offered to Pantera is equivalent to $4.60 per Pantera unit based on a deemed value of 21 cents per Western share, or a total transaction value of about $64.1 million. Pantera Drilling units popped 27% to $4.25.
Shares of Cayden Resources (TSX: V.CYD, Stock Forum) jumped 30% to $6 after the junior miner said it has entered into an option agreement with La Camera Mining Inc., an Ontario corporation, to acquire its Mexican subsidiary, which has a purchase right to buy the Morelos Sur gold property.
And, Creston Moly (TSX: V.CMS, Stock Forum) Monday announced assay results of four diamond drill holes recently completed at its El Creston molybdenum property in Mexico, which included 33.55 metres averaging 0.243% molybdenum. Creston shares surged 29% to 29 cents.
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