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Canadian small/micro-cap roundup: V.LOT, T.GBU, T.CAL, T.SWY and V.MTO

Stockhouse Editorial
2 Comments| November 15, 2013

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Stock movers for the week of November 12, 2013:


On Tuesday, TomaGold Corp. (TSX: V.LOT, Stock Forum) was up 7.1% to 15 cents. The stock is reacting to news that the mining exploration company and IAMGOLD Corp. (TSX: T.IMG, Stock Forum) signed an agreement on the Monster Lake, Winchester and Lac a l'eau jaune gold projects, located in northwestern Quebec, 44 kilometres southwest of Chibougamau. The option agreement states IAMGOLD may earn a 50% interest in each of the properties for a total of $17.575 million, including $16 million in exploration work and $1.575 million in payments over five years.

Gabriel Resources Ltd. (TSX: T.GBU, Stock Forum) rose 7.3% to 88 cents after the resource company announced that the report of the Joint Special Committee of the Chamber of Deputies and the Senate on the draft legislation related to its majority owned Rosia Montana gold and silver project and the development of mining activities in Romania (Draft Law) has been published. The conclusions of the report do not propose a rejection of the project by the Romanian Parliament. The Special Committee recommends the rejection of the legislation initiated by the Government specific to Rosia Montana, and this recommendation is expected to be debated in the Senate of the Parliament, before the report and the Draft Law are sent to the Chamber of Deputies, as the decision-making body charged with voting on its adoption.

On Wednesday, Calendonia Mining Corp. (TSX: T.CAL, Stock Forum) rose 4.0% to 79 cents after the exploration and development company announced its third quarter results ended Sept. 30, 2103. Caledonia produced 12,042 ounces of gold in the quarter, compared to 12,918 ounces in the third quarter f 2012. Net profit after tax for the quarter attributable to Caledonia shareholders was $3.7 million compared to a loss of $7.2 million in the third quarter of 2012, after a non-cash, non-recurring expense of $12.1 million arising on the implementation of indigenisation at the Blanket mine in Zimbabwe. Basic earnings per share to Caledonia shareholders were 7.2 cents.

Stornoway Diamond Corp. (TSX: T.SWY, Stock Forum) slipped 5.4% to 88 cents as investors assessed the news that the diamond miner had entered into an amended agreement with Dundee Securities Ltd. as lead underwriter, together with a syndicate, for a private placement financing on a bought deal basis of 9.2 million flow-through common shares at a price of $0.95 per flow-through share for gross proceeds of 8.74 million. Furthermore, Stornoway has granted the underwriters the option to purchase up to an additional 1.38 million flow-through shares to cover over-allotments. The underwriters may exercise the over-allotment option at the issue price up to 48 hours prior to closing. In the event that the over-allotment option is exercised in its entirety, the gross proceeds of the offering will be $10.1 million. Closing of the offering is anticipated to occur on or before Dec. 3, 2013.


In Thursday trading, Metanor Resources Inc. (TSX: V.MTO, Stock Forum) rose 15.6% to 18.5 cents after the exploration company reported that its Bachelor project, located 225 kilometres northeast of Val-d'Or, Quebec, reached commercial production on November 2, having operated for a period of 60 consecutive days, at over 80% of its theoretical mill capacity with an average of 629 tonnes per day. In accordance with the criteria established by Metanor, the commercial production will be declared the first day of the calendar month following the mill having operated at over 80% of its capacity for a period of 60 days. Therefore, the company will commence reporting operating costs as of Dec. 1, 2013. During this 60-day period, the mill processed 37,743 tonnes of ore. The company now plans to maintain the milling rate over 18,500 tonnes per month producing close to 10,000 ounces per quarter.

North American Palladium Ltd. (TSX: T.PDL, Stock Forum) slipped 5.3% to 72 cents. The stock is reacting to news of the precious metals producer’s operating, development, and financial results for the third quarter ended Sept. 30, 2013. During the quarter the company produced 30,097 ounces of payable palladium at the Lac des Iles (LDI) mine, located in Ontario, at a cash cost per ounce of US$581, bringing the nine-month total to 104,180 ounces at a cash cost per ounce of US$539. Adjusted EBITDA was $3.2 million, bringing the nine-month total to $12.0 million.


And, on Friday, POET Technologies Inc. (TSX: V.PTK, Stock Forum) was up 7.1% to 53 cents. The stock is reacting to news that the technology company is granting additional incentive stock options under its stock option plan, to certain officers and employees of the company, to purchase up to an aggregate of 1.5 million common shares, representing 1.12% of the outstanding shares of the company. Of these options, 42.6% were granted to key employees, including technical staff and 57.4% to the company's officers. No options were granted to the directors of the company.

Mercator Minerals Ltd. (TSX: T.ML, Stock Forum) lost 21.4% to six cents after the exploration and development company reported its financial and operating results for the three month period ended Sept. 30, 2013. For the third quarter 2013, the company reported revenues of US$49.4 million, an operating loss of US$3.5 million before asset impairment charge, a net loss of US$151.9 million (US$0.48 per share, basic), or an adjusted net loss of US$7.9 million (US$0.03 per share). Included in the net loss is US$167.8 million (or US$0.53 per share) non-cash accounting charge for the impairment of the El Creston project and Mineral Park mine, located in Sonora, Mexico. Production for the quarter totaled 19.8 million copper equivalent pounds, comprised of 9.9 million pounds of copper in concentrates and cathode, 2.1 million pounds of molybdenum.


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