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Potash drilled from the earth is carried up to the surface on a conveyor belt.DAVID STOBBE

Inside the Market's roundup of some of the Canadian small caps making news and on the move today. This post will be updated through the morning.

Clothing retailer Le Château Inc.'s second-quarter sales fell to $68.3-million (Canadian), a decrease of 9.7 per cent from $75.7-million a year earlier due to reduced store traffic and increased promotional activity, the company said. Comparable store sales decreased 8.6 per cent for the second quarter versus the same period a year ago. Its net loss amounted to $3.0-million or 10 cents a share, compared to net earnings of $1.1-million or 4 cents a share the previous year, mainly as a result of a decrease in the gross margin.

Shares on the TSX were down 22 cents, or nearly 18 per cent, at $1.01, in morning trade.

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Roxgold Inc. announced on Monday morning the discovery of a new high-grade vein in the Bagassi South area of its developing Yaramoko gold project in Burkina Faso.

"In our view, today's results highlight the exploration upside at Yaramoko," says Jennings Capital analyst Stuart McDougall. "We expect more positive updates in future, with drilling scheduled to renew in Q4/14, following the rainy season."

Mr. McDougall maintains his "speculative buy" rating and $1.25 price target.

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Kirkland Lake Gold Inc. released preliminary fiscal first-quarter financial results, with earnings per share of 7 cents missing the Street consensus estimate by 1 cent. Revenues of $54.0-million modestly beat the consensus estimate of $52.3-million.  The company's cash costs of $715 (U.S.) an ounce were down 21 per cent from the previous three-month period.

M Partners analyst Derek Macpherson commented, "The company's continued operational execution supports our view that Kirkland Lake's F2015 guidance is achievable, in particular as FQ1 cash costs were below guidance and production represented 29 per cent of the lower end of full-year guidance. ... In our view, the strong FQ1 2015 represents another positive indication that the turnaround at Kirkland Lake is well underway." He maintained a "buy" rating and $6.30 (Canadian) price target.

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Canaccord Genuity analyst Aravinda Galappatthige initiated coverage on Loyalist Group Ltd. with a "buy" rating and 85 cents (Canadian) price target. Loyalist is an educational company that specialises in English language studies for foreign students, and has 25 compuses across Canada.

Mr. Galappatthige commented, "We see this as an attractive roll-up opportunity in a highly fragmented industry. Loyalist has already made 16 acquisitions over three years and is up to a run rate revenue level of just under $65M. The market size in ESL (English as a second language) alone is estimated at $788-million in Canada (of which $500-million is tuition fees), comprising mostly small single proprietor or "Mom & Pop" type operations that tend to be under-capitalised and without an exit strategy. Hence, there is significant room to consolidate a large part of this sector over time. The financial accretion through the roll-up process is very attractive."

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In other analyst initiations this morning, Raymond James initiated coverage on Atico Mining Corp. with an "outperform" rating and $1.15 (Canadian) price target; Euro Pacific Canada initiated coverage on Treasury Metals Inc. with a "speculative buy" rating and 12-month price target of 70 cents a share; and Clarus Securities initiated coverage on Panterra Resource with a "buy" rating and 65 cents (Canadian) price target.

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Allana Potash Corp. has hired a German company, ERCOSPLAN, to complete a preliminary economic assessment on kainitite resources for sulphate of potash (SOP) production at its Danakhil Project in Ethiopia. SOP is commonly used on chloride-sensitive crops such as tobacco, fruits and vegetables and vineyards and typically commands a premium price to muriate of potash. The price differential between the two  has averaged approximately $125-150 (U.S.)/tonne over the past several years and has increased to over $350/tonne recently. The kainitite mineral resources at Allana's Danakhil Project are extensive, the company said.

Cantor Fitzgerald analyst Peter Prattas commented, "In our opinion, this is a prudent move requiring only modest investment toward proving the economic validity of this resource with the potential to create value for shareholders." He has a "buy" rating and $1.15 (Canadian) price target on the company's shares.

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Merus Labs International Inc. announced that one of its wholly owned subsidiaries has acquired from Novartis AG, in certain European countries, the rights to manufacture, market, and sell the branded prescription medicine product Sintrom. It's used for the treatment and prevention of thromboembolic diseases. Financial terms of the deal were not disclosed.

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Nuvo Research Inc., a specialty pharmaceutical company, said it has reached a full settlement with Mallinckrodt Inc. over Nuvo's claims and Mallinckrodt's counterclaim relating to Nuvo's license to Mallinckrodt of the right to market and sell Pennsaid and Pennsaid 2% in the United States. Under the terms of the settlement agreement, Mallinckrodt will return all U.S. rights to Pennsaid and Pennsaid 2% to Nuvo after a brief transition period and pay $10-million. Pennsaid is used to treat the signs and symptoms associated with knee osteoarthritis.

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Vista Gold Corp. said its environmental impact statement for its flagship Mt. Todd gold project in Australia has been approved. Authorities have assessed the environmental impact of the mine, Vista's principal asset, and concluded that it can proceed, subject to a number of recommendations which are outlined in the assessment report.

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True Gold Mining Inc. has entered into a long-term cement supply contract for its Karma project that will help it save about $35-million (U.S.) on costs estimated in its feasibility study.

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TerraX Minerals Inc. said it has received all surface sampling results from the summer prospecting and mapping program on its Yellowknife City Gold Project. Details are available here.

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Rubicon Minerals Corp. said its Phoenix gold project is on budget and on schedule for projected production in mid-2015.

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Uranium Energy Corp. announced the appointment of Scott Melbye as executive vice-president, effective immediately.

Mr. Melbye is a 30-year veteran of the nuclear energy industry, having held leadership positions in major uranium mining companies as well as industry-wide organizations.