Exploration junior up 50% on proposed merger

Stockhouse Canadian Small and Micro-cap Stock Report for Friday, May 3, 2013 VANCOUVER (SHfn) –

Ridgemont Iron Ore Corp. (TSX: V.RDG, Stock Forum) soared 50% to 3 cents on Friday after the exploration company said it had signed a definitive arrangement agreement with Castillian Resources Corp. (TSX: V.CT, Stock Forum) pursuant to which Castillian will acquire all of the outstanding shares of Ridgemont by way of a plan of arrangement under the Business Corporations Act (British Columbia). Upon completion of the transaction, existing Castillian and Ridgemont shareholders will own approximately 57.8% and 42.2% of the combined company respectively. The merger will result in an advanced stage gold exploration company with a stronger balance sheet focused on Castillian’s Hope Brook gold project in southwestern Newfoundland. Ryan Gold Corp. (TSX: V.RYG, Stock Forum) currently holds 10% interest in the project, which Castillian will repurchase by issuing 8 million common shares to Ryan Gold before the transaction.

Petroamerica Oil Corp. (TSX: V.PTA, Stock Forum) rose 7% to 31 cents after the oil and gas junior announced the drilling results for its Las Maracas-9 well on the Las Maracas Field, Los Ocarros Block, Colombia. The Las Maracas-9 well was drilled as an S-style well targeting the attic oil in the Gacheta reservoir up-dip from the Las Maracas-3 well. The well encountered the top of the main Gacheta reservoir 16 feet higher than at the Las Maracas-3 well and a petrophysical interpretation of the wireline logs indicates 42 feet of net oil pay in the main Gacheta reservoir.

Sterling Resources Ltd. (TSX: V.SLG, Stock Forum) was up 5% to 64 cents after the international oil and gas company announced the settlement of the previously announced US$225 million senior secured bond issue, issued by its UK subsidiary Sterling Resources (UK) Ltd. and full repayment of the £105 million senior secured credit facility held with a group of lending banks. The settlement date for the bond was April 30, 2013 and it will mature on April 30, 2019 after its six year term. The bond carries an annual coupon rate of 9.0% payable semi-annually and it is callable at the option of the issuer at any time with a roll-up of outstanding interest for the first two years and a call premium of 105% for the initial three years, with declining premiums thereafter.

Focus Graphite Inc. (TSX: V.FMS, Stock Forum) fell 3% to 64 cents after the emerging mid-tier junior mining development company announced the appointment of Jeff Hussey as Vice President, Project Development for the company's high-grade, high-purity Lac Knife graphite mining development project located south of Fermont, Quebec. His appointment is effective May 1, 2013. Hussey earned his Bachelor of Science in Geology from the University of New Brunswick and is a consulting geologist with 28 years domestic and international open pit, underground operations and project management experience.