Major Drilling Group International Inc. , which has added to the 2.5 per cent lost Thursday, announced Friday that it has entered into an agreement to acquire all of the issued and outstanding shares of Bradley Group Limited, a family-owned drilling company based in Rouyn Noranda, Quebec, for an aggregate purchase price of $80 million, subject to adjustments and subject to certain customary closing conditions.
Major Drilling, one of the world's largest metals and minerals contract drilling service companies, said $72 million of the purchase price will be payable in cash at the closing of the acquisition with the balance of $8 million being subject to a hold-back over 3 years. In addition, at the closing of the acquisition, the corporation "expects to repay a portion of the indebtedness of Bradley Group under its credit facilities in the amount of approximately $10 million, and the remaining portion of such indebtedness in the amount of approximately $5 million will effectively be assumed by the corporation." The acquisition and other related transaction costs are being financed through a $70 million 'bought deal' public offering of subscription receipts and new and extended credit facilities of $100 million in aggregate.
Patheon Inc. , a provider of contract development and manufacturing services to the global pharmaceutical industry, announced today details of its new corporate strategy, including an initial heavy focus on strengthening the company's core operations, and its results for the third quarter of 2011.
Patheon, which had been trading near a year low $1.55, reported a loss from continuing operations before income taxes was $3.2 million compared to a loss from continuing operations before income taxes of $1.0 million in the same period last year. Revenues for the third quarter of 2011 were $172.7 million or 5.8 per cent higher than the same period last year. Excluding currency fluctuations, revenues would have been approximately 0.2 per cent higher than in the same quarter last year. On its outlook, Patheon expects results from operations in the fourth quarter of 2011 will be stronger than those of the third quarter, but will be impacted by continuing consulting expense related to the implementation of Patheon's strategic plan and operating efficiency initiatives.
A second junior miner is hoping a little of Barrick Gold's luck rubs off on them as well. NuLegacy Gold Corp. is developing the Red Hill prospect in Nevada adjacent to the Cortez property where Barrick identified two zones of gold mineralization along a seven-kilometer long trend. NuLegacy optioned Red Hill two years ago, consolidating four properties straddling the Battle Mountain-Eureka gold trend immediately southeast of the Cortez discoveries. Proximity was a winning strategy Thursday for Rye Patch Gold Corp. , which is working the Golden Gate Pass project directly south of the Cortez Hills mine. Rye Patch shares gained 21 per cent yesterday and are trading at near year highs. But, possibly reflecting losses for the overall market, NuLegacy edged lower early Friday.
Whiterock REIT rose by more than 2 per cent early Friday after announcing that it completed the purchase of a Sobeys long-term leased shopping centre in Tillsonburg, Ontario, for approximately $7.5 million. The REIT said its management expects the acquisition to be accretive to annualized on-going adjusted funds from operations per unit. The first full quarter impact of this increase to AFFO per unit is expected to be realized commencing in the fourth quarter of 2011.
Hathor Exploration Inc. is not letting a prospective takeover bid get in the way of doing business, announcing it has started exploration drilling at its Russel Lake uranium project in the Athabasca Basin of Saskatchewan. Directors yesterday also told shareholders not to take any action yet regarding Cameco Corp.'s unsolicited cash offer of $3.75 a share. The company is still preparing a formal response, they said, adding that their answer will largely turn on how economic models values Hathor's Roughrider deposits.
Inscape Corp. , a manufacturer and seller of office equipment, was flat but was being bid much lower early Friday after saying fiscal first-quarter revenues climbed 7 per cent to $19.3 million, but a year-ago $645,000 profit swung to a $1.7 million net loss. The 12 cent per share loss was attributed to significantly lower gross margins due to tighter exchange rates, lower net selling prices and an unfavourable product mix. Company officials also forecast second-quarter sales will be similar to first-quarter levels.
DiagnoCure, Inc. reported a $912,459 net loss from continuing operations in its fiscal third quarter, compared with a $818,546 loss during the same three months in 2010. Total revenues for the period were $304,288, down 12 per cent from last year. On a nominal basis, royalties from the Progensa PCA3 test for prostate cancer were down $7,635 to $174,476 due to currency conversions. Absent that impact, royalties would have been 3 per cent higher than the 2010 comparable amount, largely the result of increased sales in Europe and the United. DiagnoCure also saw a small increase in royalties from the ImmunoCyt uCyt+ test for bladder cancer during the quarter.
Manitok Energy Inc. said tie-in operations for its discovery well on the Stolberg property in west-central Alberta are nearly complete and the well slated to be on production within the next week. Manitok has a 75 per cent working interest in the well and initial expectations are for it to add about 543 barrels of oil equivalent per day to the company's net production, nearly tripling current levels. Manitok plans to drill six wells at Stolberg by mid-2012, targeting three different Cardium light oil-bearing reservoirs.
Greenfields Petroleum Corp. , which closed Thursday at a year low $8, has hired a new chief financial officer, last night naming David G. Gullickson to the post. Since 2005, Gullickson has been a partner with Tatum, a national executive services and consulting firm, working with larger privately held companies as well as public companies listed on the U.S. and London stock exchanges. Greenfields is a junior oil and gas company focused on developing proven reserves in the former Soviet Republic of Azerbaijan.
Oceanside Capital Corp. , which closed Thursday at a year high 47.5 cents, has signed a binding letter of intent for a business combination with with Pacific Iron Corp., a private company with interests in a pig iron plant located near Bogota, Colombia. The deal is structured as a reverse merger, with Pacific Iron as the surviving company and beginning operations during the first half of 2012 after a refurbishing of the plant and other upgrades are complete. Initial projections call for the facility to produce about 120,000 metric tons of pig iron yearly, later growing to 400,000 metric tons per year. Existing Oceanside shareholders will own about 8.9 per cent of the combined firms.
Cold-FX flu remedy maker Afexa Life Sciences Inc. has hit year high levels on news that it has agreed to a friendly $76 million takeover bid by Valeant Pharmaceuticals International Inc. .
Romios Gold was down as gold dropped in New York as a stronger U.S. dollar cut demand for an alternative asset. The company's drilling on the Dirk Property also reportedly demonstrated that significant sulphide mineralization is present at various levels from surface to depth. The diamond drill program was carried out on the "72" and Telena Zones on its Dirk Property in the vicinity of Galore Creek in northwestern British Columbia.
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