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PMI Gold (T.PMV) up 36% on business combination: Canadian market movers

Elizabeth Walters Elizabeth Walters, Stockhouse
0 Comments| December 17, 2013

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Here are the most active stocks on Tuesday mid-morning on the TSX and TSX Venture Exchange.

On Tuesday, the top TSX mover was PMI Gold Corp. (TSX: T.PMV, Stock Forum). The stock was up 35.7% and was trading at $$0.38 on volume of 7.4 million.

Today, the exploration and development company announced that Asanko Gold Inc. (TSX: T.AKG, Stock Forum) will acquire all of the common shares of PMI to create an emerging mid-tier gold producer with a clear pathway to 400,000 ounces of annual gold production.

Under the arrangement, each PMI shareholder will receive 0.21 Asanko common shares for each PMI common share. This values each PMI share at $0.441 representing a premium of 79% to the 20-day volume weighted average share prices of the PMI common shares on the TSX as of Dec. 16, 2013. Following the completion of the business combination, PMI and Asanko shareholders will hold approximately 50% each of the combined company.

Calmena Energy Services Inc. (TSX: T.CEZ, Stock Forum) was the second most active stock on the TSX. It lost 28.6% and was trading at $0.025 on volume of 3.9 million shares.

The oil and gas services company had no related news to explain the high volume in trading.

LGX Oil + Gas Inc. (TSX: V.OIL, Stock Forum) was the volume leader on the TSX Venture Exchange. It soared 27.5% and was trading at $0.65 on volume of 5.6 million.

On December 16, the junior oil and gas company provided completion results from recent southern Alberta drilling activity. LGX's Big Valley (Three Forks) Formation horizontal well at 13-2-9-24 W4M was recently completed with a 20 stage hydraulic fracture stimulation and has achieved the following extended production test results.

The 13-2 well has been flowing back for 136 hours up a 4.5 inch diameter frac string and has produced 9,360 barrels of 31 degree API light oil for an average daily rate of approximately 1,650 barrels of oil per day and 570 million cubic feet per day of associated solution gas for an oil equivalent rate of 1,745 barrels of oil per day over the test period.

The second most active stock on the TSX Venture was MPH Ventures Corp. (TSX: V.MPS, Stock Forum). It slipped 33% and was trading at $0.01 after 2.0 million shares changed hands.

The junior exploration and development company had no related news.


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