Inside the Market's roundup of some of the Canadian small caps making news and on the move today
Paladin Energy Ltd. announced a number of measures to recapitalize the company and address its medium-term funding requirements, which should raise $177-million (U.S.) Following these measures, and other initiatives to be implemented in early 2015, Paladin expects to be fully funded until at least June 2016.
Dundee Securities analyst David Talbot commented that the plan will be heavily dilutive to shareholders. He cut his price target by 10 cents to 40 cents (Canadian) and reiterated a "buy" rating.
"There is a tradeoff here - Paladin is fixing its balance sheet concerns at the cost of dilution, which in turn is killing some of the leverage this stock was expected to have," Mr. Talbot said in a research note. "We didn't expect a dilutive equity raise to pre-empt a strategic alliance that was so heavily suggested during the quarterly update just a week ago. However, once the deal is done, we do expect investors to be better positioned to take advantage of its suddenly improved financial freedom, although sensitivity to uranium price fluctuations has now been cut by 25 per cent."
Shares in the uranium producer were unchanged Monday at 38.5 cents.
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True Gold Mining Inc. reported a third-quarter net loss of 1 cent a share, narrower than its loss of 3 cents a year ago
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UrtheCast Corp. announced that it has received the final signature on a five-year contract with a confidential customer, valued at $65-million (U.S.), for engineering services, value-added services, and Earth imagery data.
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Sound Oil, a European upstream oil and gas company, announced that it intends to launch a public offer for 100 per cent of the share capital of Antrim Energy Inc. Sound Oil is offering 0.3198 of a share for each Antrim share. The offer is valued at 6.35 million British pounds.
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Ivanhoe Mines Ltd. announced that additional, exceptionally high-grade silver, zinc and copper drill intercepts have been reported in the third batch of assay results from the company's underground diamond-drilling program at the Kipushi copper-zinc-germanium-lead and precious-metals mine in the Democratic Republic of Congo.
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NioCorp Developments Ltd. announced the signing of confidentiality agreements with Credit Suisse Securities (USA) LLC and Morgan Stanley & Co. LLC for the review of non-public information and counsel on the company's long-term planning strategy.
NioCorp is developing the only primary niobium deposit known to be under development in the United States, and the highest grade undeveloped niobium deposit in North America, located near Elk Creek, Nebraska.
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Amarc Resources Ltd. announced that it has made a significant copper-molybdenum-silver discovery at its IKE Project in British Columbia. "Assay results received from an initial nine hole (5,400-metre) diamond drill program have confirmed the presence of an important porphyry-style deposit," it said.
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International Tower Hill Mines Ltd. announced that it has arranged a non-brokered private placement financing of common shares to raise gross proceeds of approximately $8.4-million (Canadian). The offering will consist of 18,245,000 common shares of the Company at a price of 46 cents a share.
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St. Augustine Gold and Copper Ltd. announced that is undertaking a non-brokered private placement of between $4-million (U.S.) to $6-million by issuing up to 60 million units at 10 cents (U.S.) per unit. Each unit will consist of one common share and one half of a common share purchase warrant.
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In analyst actions today involving Canadian small caps:
Raymond James lowered its outlook for gold and silver prices, resulting in reduced target prices for the precious metals stocks it follows. ATAC Resources, AuRico Gold, First Majestic Silver, Pan American Silver, and Probe Mines were concurrently downgraded to "market perform" from "outperform." Detour Gold and Fortuna Silver Mines were downgraded to "outperform" from "strong buy." Target prices declined on average 14 per cent for gold stocks and 20 per cent for silver equities.
Canaccord Genuity upgraded Concordia Heathcare to "speculative buy" from "hold" and hikes its price target to $55 (U.S.) from $42.
Darcy Keith