Junior exploration stock pops on silver results

Stockhouse Canadian Small and Micro-cap Stock Report for Tuesday, November 22, 2011

TORONTO (SHfn) – Southern Silver Exploration (TSX: V.SSV, Stock Forum) shares jumped 22% to 14 cents on Tuesday after the micro cap explorer reported assays results from core drilling on the Blind Zone at its Cerro Las Minitas project in Mexico, which included 11.5 metres of 140 grams per tonne (g/t) silver, 0.2% copper, 4.9% lead, and 4.1% zinc.

As well, shares of Magnotta Winery (TSX: T.MGN, Stock Forum) moved up 54% to $2.81 as the company said it has been advised by Magnotta Family Holdings Ltd., a corporation controlled by members of the Magnotta family, that it has proposed a going-private transaction to acquire all of the outstanding common shares of the company other than shares held by the Magnottas at a price of $2.90 per share.

Distinction Group (TSX: T.GD, Stock Forum), meanwhile, announced it has reached an agreement to partner with Birch Hill Equity Partners, pursuant to which all of the outstanding shares of the company will be acquired by Birch Hill and Distinction Group will be taken private for total consideration of approximately $153 million, or $4.50 per share in cash. Distinction Group stock popped 22% to $4.44.

Shares of Formation Metals (TSX: T.FCO, Stock Forum) powered 26% higher to 73 cents after the junior miner said it has secured a Letter of Credit in support of US$43.6 million of the US$77.7 million in proceeds the company previously raised from the sale of Federal Stimulus Program Recovery Zone Facility Bonds.

And, Galway Resources (TSX: V.GWY, Stock Forum) Tuesday reported complete assay results from three diamond drill holes and partial results from another four holes at its Vetas gold-silver project in the California-Vetas-Surata gold region of Colombia, which included 78.2 g/t gold over 3.2 metres. Galway shares added as much as 9% at $1.58.

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