Our roundup of Canadian small-caps making news and on the move today. This post will be updated through the morning.
Chorus Aviation Inc. said it has met all the terms necessary to establish the expansion of its extended capacity agreement through 2025. "Our amended CPA and fleet modernization improves fleet economics and enables a stronger relationship for the long term," said Joseph Randell. "Chorus will continue to enjoy strong compensation levels over our 11-year horizon which is anticipated to support the current dividend and diversification opportunities going forward."
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Kaizen Discovery and Tower Resources Ltd. said that they have entered into an exclusivity agreement, which is the first step in a proposal by which Kaizen would acquire Tower in an all-stock deal for $0.065 per share, a 62.5 per cent premium to its closing price on Friday. "This is another important step towards growing Kaizen's exploration portfolio with undervalued, high-quality projects that have the potential to produce and deliver minerals to Japan's industrial sector," said president and chief executive officer B. Matthew Hornor. "Tower has several impressive prospects in close proximity to our existing exploration ground at the Tanzilla and Aspen Grove projects, so we believe that the proposed combined landholding greatly enhances our potential to make a significant mineral discovery."
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Pan Orient Energy Corp. said that it expects to receive $50.5-million from the sale of a 50 per cent interest in one of its subsidiaries to Sea Oil Public Company Limited, which had been delayed, in the next two to three days. "I am very pleased to welcome Sea Oil as our new partner in Concession L53 and look forward to the imminent drilling of the ANC-1 exploration well," said president and chief executive officer Jeff Chisholm. "Pan Orient is financially well positioned as a result of an initiative to strengthen the balance sheet that commenced long before the recent drop in world oil prices and is now experiencing the benefits of this initiative."
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SouthGobi Resources Ltd. said that a panel of judges in Mongolia have found three of its former employees guilty of tax evasion and fined the company approximately $18.1-million (U.S.), which will be payable pending the outcome of an appeal. "We are extremely disappointed by the Court's decision. The conclusions reached by the experts as highlighted in their report presented to the Court are erroneous and there is a complete lack of evidence to support this harsh verdict," said president and chief executive officer Enkh-Amgalan Sengee. "We fully support our former employees and will lodge an immediate appeal against the Court's decision".
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Dynex Power Inc. said that a major customer had cancelled a contract after experiencing issues with a product it had received. As such, the firm no longer expects to be able to turn a profit in fiscal 2014. "The contract cancellation and the resulting costs came as a surprise and are a devastating blow. The product part involved had been extensively tested and individually they are all fully compliant with the component test specification," said president and chief executive officer Dr. Paul Taylor. "We have been supplying that same part for use by the customer for over twelve months and had already completed the contract when we were informed that they did not work correctly in the customer's application. We believe, given time, that the technical issues involved will be resolved."
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Platino Energy Corp. said its board of directors has approved a $6-million (U.S.) capital budget for 2015, which will be funded by cash from operations, cash on hand, and debt. The company is aiming to boost oil production by nearly 50 per cent to a range of 1,200 to 1,500 barrels per day.
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More to come.