Junior miner powers higher on tungsten/moly agreement

Stockhouse Canadian Small and Micro-cap Stock Report for Tuesday, February 28, 2012

TORONTO (SHfn) – Woulfe Mining (TSX: V.WOF, Stock Forum) shares jumped 18% to 32.5 cents on volume of more than 2.3 million shares Tuesday after the miner announced that it and its 100%-owned tungsten/molybdenum South Korean subsidiary, Sangdong Mining Corporation, have entered into agreements for a strategic arrangement with IMC International Metalworking Companies B.V. (IMC) and certain of IMC's affiliates. IMC will immediately advance $5 million to Sangdong, pursuant to a loan agreement, for purposes of project advancement pending the closing of the transaction. IMC has also agreed to acquire a 25% interest in Sangdong for cash consideration totalling $35 million.

As well, shares of Second Wave Petroleum (TSX: T.SCS, Stock Forum) moved up 15% to $3.47 on more than 5.5 million shares traded as the oil and gas producer announced that it increased its proved plus probable reserves by 87% year-over-year to 10,950 mboe (approximately 72% oil and natural gas liquids). The company added that it will initiate a strategic review of its operations, including a potential sale of the company, after receiving certain unsolicited proposals.

United Silver (TSX: V.USC, Stock Forum), meanwhile, said its Board of Directors has approved a phased, property-wide, US$23 million, four-year plan to further explore and develop the Crescent Silver Mine resource in Idaho. United Silver stock popped 25% to 40 cents.

And, Ridgeline Energy Services (TSX: V.RLE, Stock Forum) shares added as much as 12% at $1.13 after Mackie Research Capital reiterated its “Speculative Buy” rating and $2.75 price target on the stock. Mackie noted that progress is being made at its high-margin industrial water processing facility in California, with revenue estimates of 15 cents to 20 cents per gallon compared to roughly two cents per gallon on oil and gas sites.

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