The interior of a Black Diamond Group lodge in Horn River Basin, British Columbia is shown in this Sept. 2009 handout photo.The Canadian Press
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Pacific Exploration and Production Corp. (PRE-T) said it reached a deal with debtholders, including Catalyst Capital Group Inc, to convert almost all of its debt to equity as it looks to fight a prolonged slump in oil prices.
The move comes after Pacific Exploration said last week that its board had agreed to negotiate a financial restructuring, involving the private equity fund, after the oil and gas company missed an interest payment.
About $5.3 billion of the company's debt will be exchanged for 58.2 percent of its common shares under the restructuring deal, Pacific Exploration said.
Catalyst has agreed to provide half of the $500 million in debtor-in-possession financing and will own a 29.3 percent stake in the restructured company, Pacific Exploration said.
Pacific Exploration said its operations, along with those of its subsidiaries, would not be affected by the restructuring.
The company suffered a major setback in March last year, after Colombia's state-run Ecopetrol refused to extend its contract to operate the country's highest-producing Rubiales oilfield.
Pacific Exploration said on Monday that the Toronto Stock Exchange was reviewing its eligibility for continued listing of its common shares.
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Pan American Silver Corp. (PAA-T) says it and MacMillan Minerals Inc. (MMX-V) have an arrangement with Maverix Metals to form a new metal royalty and streaming company led by a former Pan American Silver CEO.
As part of the agreement, MacMillan will acquire all of the issued and outstanding securities of Maverix.
"Concurrently MacMillan will purchase a package of thirteen royalties and precious metal streams from Pan American," the companies said in a release.
It said MacMillan will be renamed Maverix Metals Inc. and will continue to trade as MMX on the TSX Venture Exchange.
Geoff Burns, the former CEO of Pan American, will be appointed as the chairman of the combined company.
"This transaction represents an attractive opportunity for Pan American to unlock value for a group of its assets that have gone largely unrecognized by the market as a number of them are not in production and are widely dispersed in our company," stated Pan American CEO Michael Steinmann. "As the majority shareholder, Pan American will maintain meaningful upside exposure and leverage to these assets, and to Maverix's ability to grow the portfolio… "
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Black Diamond Group (BDI-T) says it has been awarded a five-year, $6.2 million rental contract with one of Australia's largest iron ore producers.
The company said the contract includes upgrades to existing workforce accommodation in the Pilbara region of Western Australia.
"Black Diamond continues to be committed to establishing a stronger presence in the Australian market and providing full turnkey workforce housing solutions to resource and other sectors," stated CEO Trevor Haynes.
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Seabridge Gold Inc. (SEA-T, SA-N) is buying SnipGold Corp. (SGG-V) in a share-exchange deal valued at just under $10-million.
"Holders of SnipGold shares will be entitled to receive 1/63rd of a common share of Seabridge in exchange for 1 SnipGold Share," the companies said in a release. "The arrangement represents total consideration to SnipGold shareholders of $9.9 million."
It said the share exchange transaction will give Seabridge exposure to SnipGold's resource at its Iskut project, while SnipGold shareholders receive an immediate 124 per cent premium and exposure to Seabridge's KSM project. Both projects are located in the Golden Triangle area of B.C.
"SnipGold's Board of Directors believes that our loyal shareholder base will benefit from this combination of companies," stated chairman Patrick Soares. "We are pleased by the premium that shareholders are receiving from Seabridge, which we think is in recognition of not only the exploration efforts of SnipGold management, but the underlying value of SnipGold's property. Seabridge has the ability to fund the project going forward with minimal dilution to its shareholder base."
With a file from Reuters