Junior miner powers higher on coal sales

Stockhouse Canadian Small and Micro-cap Stock Report for Wednesday, June 15, 2011

TORONTO (SHfn) – CanAm Coal (TSX: V.COE, Stock Forum) shares surged 13% to 18 cents on Wednesday after the micro cap miner reported coal sales for the first quarter ending April 30, 2011. Coal sales at the Powhatan mine in Alabama tripled over the comparable period in the previous fiscal year and were 30,655 tons in the quarter as compared to 9,950 tons in Q1 of fiscal 2011, or an increase of 20,705 tons. Coal sales were up 16,022 tons from the previous quarter, or more than double.

As well, shares of Breakwater Resources (TSX: T.BWR, Stock Forum) gained 43% to $7.42 as the miner said it has entered into a binding agreement pursuant to which Nyrstar NV has agreed to make an all-cash offer to acquire all of the issued and outstanding shares of Breakwater by way of a friendly take-over bid. Breakwater shareholders will receive $7 in cash per common share, representing a total value of approximately $619 million to be paid by Nyrstar, as well as a special dividend of 50 cents in cash per common share to be declared payable to Breakwater shareholders of record on the business day immediately prior to the take-up of shares by Nyrstar pursuant to the offer.

Zone Resources (TSX: V.ZNR, Stock Forum), meanwhile, announced additional information gathered during a compilation of historical exploration data on its Labrador Trough iron properties in the Nunavik district of Quebec. Of the 13 drill holes, eight encountered iron-bearing rock with average iron content of 30.1% soluble iron over the length of the intercepts. Zone stock popped 16% to 18 cents.

And, DiagnoCure (TSX: T.CUR, Stock Forum) Wednesday reported the issuance of a new U.S. patent, which bears an extended expiration date that lengthens by 20 months the term of the license that DiagnoCure granted to its commercial partner, Gen-Probe. This new U.S. patent, 7,960,109 "mRNA Ratios in Urinary Sediments and/or Urine as a Prognostic and/or Theranostic Marker for Prostate Cancer," covers the particularities of the quantitative urinary test developed by Gen-Probe. DiagnoCure shares rose 14% to 83 cents.

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