Jaguar Mining Inc. fell as much as 20 per cent in early Wednesday trading with more than 230,000 shares exchanging hands, which is already more than an average daily volume of around 190,000 over the previous 30 days. This comes after Jaguar said it generated $70-million in revenues during the third quarter, well under the single analyst estimate of $84-million. The gold miner sold a record 41,390 ounces of gold at a cash cost of $866 an ounce, up nearly 11 per cent from year-ago levels, based on preliminary analysis. Lower feed grades at the Paciencia mining complex in Brazil were blamed for higher-than-usual expenses. Average selling price was $1,692 per ounce, generating an operating margin for the quarter of $806 an ounce.
WiLan Inc. , which closed yesterday touching the 20-day averageof $6.16, lost early gains that saw it touch $6.17 and went on to dip below the $6 mark after announcing today that it has increased its fully funded all cash offer to acquire MOSAID Technologies Inc. T by 11 per cent to $42 per share. The licensing company also said the offer will remain open until 5:00 pm Eastern time on Nov. 1 and that it will finance the revised offer through cash on hand and previously arranged financing.
Reitmans Ltd. was slightly higher in early trading after saying it plans to close its 25 Cassis stores, primarily through conversion to other Reitmans banners. Cassis stores currently generate about $20-million in yearly sales, or less than 2 per cent of the company's total. After-tax costs associated with the closures and conversions, including asset write-offs and severance related costs, are expected to total about $4-million and will be about be reflected in Reitman's third quarter results.
Fresh off its announcement late Monday it was purchasing an oilfields clean-up and waste water disposal company, Gibson Energy last night said its largest institutional investor plans to soon sell at least 14 million of its shares, liquidating nearly one-quarter of its Gibson stake for $252-million in gross proceeds. New York-based Riverstone Holdings llc currently owns about 54 million Gibson shares, representing a 62 per cent interest in the midstream energy company. That stake would fall to around 47 per cent if the bought-deal offering led by BMO Capital Markets advances as planned. Gibson shares were down more than 3 per cent and threatening to drop under the $18 mark in early trading.
Rocky Mountain Dealerships Inc. renewed its normal course issuer bid to buy back and cancel a portion of its common stock. Under the plan, the Calgary-based chain of 37 heavy-equipment dealerships can repurchase up to 938,419 shares, or 5 per cent of its outstanding stock, in blocs as large as 7,930 share per day on the open market. The company during the 12 months ended Sept. 30 bought only 12,000 shares at an average price of $8.9977 each, excluding transaction costs. The new stock buy-back plan is set to begin Monday.
Argex Mining Inc. yesterday completed its $2-million purchase of a 50.1 per cent ownership stake in Canadian Titanium Ltd., a privately held company based in Mississauga, Ont., that has developed proprietary technologies to recover titanium dioxide from ore. The deal gives Argex exclusive rights to market the recovery process in Quebec and a non-exclusive license for the rest of the world in exchange for $1-million in cash and $2-million of Argex stock. Argex also pay a 2 per cent royalty on its production of titanium dioxide.
Afexa Life Sciences Inc. chose two senior executives from Valeant Pharmaceutical International Inc. to run the company in the wake of Valeant's takeover of the Cold-FX flu treatment maker. Robert Chai-Onn, general counsel of Valeant Pharma, will become chairman. Thomas Schlader, president of Valeant Canada, will take on the role of president and CEO. Valeant, which already controls 74 per cent of Afexa, has extended its friendly takeover offer to October 27.
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