Here are Canadian small cap stocks moving on news today and worth watching:
Zarlink Semiconductor Inc. , trading around levels last seen in 2006, acknowledged receipt of an updated unsolicited non-binding proposal from Microsemi Corp. to acquire all of the outstanding shares of Zarlink for $3.35 per share in cash. Its board has unanimously concluded with the assistance of its advisers that it significantly undervalues the company. "The Zarlink board has always been prepared to consider and pursue strategic transactions or plans and will consider all appropriate alternatives which capture the true value of the company for its stakeholders," Adam Chowaniec, chairman of Zarlink's board, said in a statement. "Zarlink continues to make strong progress as it focuses on growth opportunities in the communication and medical markets. .... Microsemi's proposal clearly does not capture the value that has been created or that exists in the company."
Soltoro Ltd. struck new 52-week highs today after saying it has received results for an additional six diamond drill holes at the El Rayo primary silver deposit in Jalisco, Mexico. It said the east-west-trending Soledad structure represents a new and significant mineralised zone unknown at the time of the recently released NI 43-101 measured and indicated resource of 58.3M ounces of contained silver. To date, the Soledad structure, which contains high-grade ore shoots, has been outlined by 15 drill holes over a strike length of 500 metres. Currently two diamond drills are testing the extent of the mineralization at Soledad, which remains open along strike in both directions as well as at depth.
Arcan Resources Ltd. announced that it has achieved "excellent" 30-day initial production rates from two new Ethel wells. Both wells are expected to reach payout at approximately 60,000 barrels of oil equivalent of production. "The initial results from Arcan's new wells are very encouraging and Arcan will continue adapting and improving its operational efficiency to enhance the productive and economic capabilities of its capital program," a statement from the company said. In addition, Arcan provided an operational update on its 2011 capital program. Despite forest fires, weather and pipeline issues, it said production volumes have shown significant growth and Arcan continues to execute on its drilling and fracture program and approach its 5,000 barrels per day of oil equivalent 2011 exit volumes guidance.
AuRico Gold Inc. announced a positive revision to its consolidated operational outlook for 2011 that includes an increase in production and a reduction in cash cost estimates for 2011. The company also provided a status update on progress at the El Chanate and El Cubo mines. It said: "Our improved operational outlook is supported by the robust performance continuing to be reported from the flagship Ocampo mine, the expansion program that has been implemented at the El Chanate mine and the resumption of commercial production at the El Cubo mine on July 11th. AuRico has revised its consolidated operational outlook for 2011, including the reduction in cash cost estimates for Ocampo as announced on July 12th."
Exploration Orbite VSPA jumped more than 10% in the early trading today after announcing that it has successfully extracted alumina from samples of Guinean bauxite. It said repeated internal laboratory tests and reviews by independent engineers have confirmed the potential of Orbite's process to extract alumina from bauxite. "Orbite's radical innovation has opened the door to an immense new market for the corporation," it said in a statement.
Galway Resources Ltd. also jumped more than 10% early Thursday as it announced assay results from holes GWY-113 to GWY-116 in the ongoing diamond drill exploration program at its California gold-silver property in Colombia. Robert Hinchcliffe, president and CEO of Galway Resources, said: "Our geologists have been better able to hone in on the high grade veins within the longer intervals of mineralization. In addition, while we have identified high grade gold from surface to a depth of 380 metres, the mineralization remains open to depth as well as along strike. Aside from the fact that GWY-115 has by far the highest grade we've ever seen on our property, this hole is significant because it further bridges the gap between the Pie de Gallo and Northeast Zones. GWY-116 is significant because it helps define the width of the main mineralized trend at California and demonstrates continuity both vertically and laterally."
Sulliden Gold Corporation Ltd. announced results for seven new drill holes from the ongoing 70,000-metre drilling program being carried out this year on its 100%-owned Shahuindo gold and silver project in northern Peru. Highlights include: Hole SH11-205 in the East Zone intercepted 1.17 g/t gold over 104.6 metres, including 4.47 g/t gold over 5.1 metres and 3.15 g/t gold over 14.9 metres. Hole SH11-204 in the East Zone intercepted 1.20 g/t gold over 52.5 metres, including 2.09 g/t gold over 23.7 metres. Hole SHV11-209 in the Central Zone intercepted 1.55 g/t gold over 34.5 metres including 2.59 g/t gold over 16.0 metres.
Prophecy Coal Corp. announced late Wednesday that it has adopted a shareholder rights plan designed to encourage the fair treatment of its shareholders in the event of an unsolicited take-over bid for shares of the company. John Lee, chairman of Prophecy Coal, was cited as saying that "Prophecy management believes the company is very undervalued, thus vulnerable given the rise in value of its equity holding in Prophecy Platinum."
Tyhee Gold Corp. announced that the board of directors of the company had determined to proceed with the termination of the company's March, 2009 shareholder rights plan and redeem the rights granted under the plan. It said the rights plan was originally adopted in the spring of 2009 in response to general market weakness which persisted in the wake of the fall, 2008 financial crisis. The company has called a special meeting of its shareholders to approve the redemption of the rights and the termination of the rights plan, to be held on Aug. 17, 2011.
Grande Cache Coal Corp. announced that it has received the amended mine permit and a new mine licence from the Alberta Energy and Resource Conservation Board necessary to commence development of its new No. 12 South B2 underground operation. It also provided an operational update, saying it sold 390,000 tonnes of coal during the three months ended June 30, 2011, compared to 450,000 tonnes in the same period of the prior year. An equipment malfunction at Westshore Terminals in the latter part of June and shipping delays resulted in two vessel loadings (approximately 70,000 tonnes) being delayed until the first week of July. Metallurgical coal accounted for approximately 84% of the total sales volume with the remainder being thermal coal. The corporation said it expects that first-quarter sales volumes will be the lowest of the fiscal year due to lower production levels at the No. 8 surface pit and the vessel delays at Westshore Terminals. It said the No. 8 surface pit is still in the early stages of production and coal volumes are being impacted by tight mining conditions and a strip ratio that is higher than that expected for the life of the mine. The initial stages of mining have also resulted in a higher proportion of oxidized coal, which is sold as thermal coal, it added. The corporation continues to anticipate annual sales volumes of 2.2 million to 2.4 million tonnes for fiscal 2012. However, sales volumes are now projected to be on the lower end of the range.
Lago Dourado Minerals Ltd. announced the discovery of a high-grade gold zone at its 100%-owned Juruena Gold Project in Mato Grasso, Brazil. Higlights from results for the first six of nine holes drilled at the previously untested Querosene Zone include: Hole JRND018, which intercepted 4 metres of 32.46 g/t gold, including 1 metre of 120.80 g/t gold and 3 metres of 20.32 g/t gold, including 1 metre of 58.20 g/t gold; Hole JRND020 which intercepted 1 metre of 62.20 g/t gold; Hole JRND022 which intercepted 2 metres of 47.10 g/t gold including 1 metre of 80.70 g/t gold.
Luna Gold Corp. announced that it has entered into an agreement with Brascan Natural Resources S.A. and Eldorado Gold Corp to amend the outstanding debt of the company to Brascan and Eldorado. Luna Gold had issued promissory notes in the aggregate amount of $3-million (U.S.), respectively, to each of Eldorado and Brascan in connection with the 2006 Purchase Agreement pursuant to which Luna Gold acquired the Aurizona project from Brascan and Eldorado. In satisfaction of the aforementioned promissory notes, Brascan and Eldorado will each receive $1.5-million in cash on or before Dec. 2, 2011; and such number of common shares of Luna Gold, on or about July 25, 2011, as is equal to the Canadian dollar equivalent of $1-million (U.S.) divided by $0.59 per share.
MidnightTrader.com provides real-time U.S., Canadian and global stock, exchange-traded fund and economic news and trading ideas to both individual and professional investors worldwide.