Our roundup of Canadian small-caps making news and on the move today.
AutoCanada Inc. announced that it has signed a letter of intent with Kia Canada Inc. which will award AutoCanada an open point Kia dealership in Winnipeg. AutoCanada intends to operate the dealership out of a new facility, designed to Kia image standards, with construction anticipated to commence late this year or early in 2016.
Gunpoint Exploration Ltd. has signed an 30-month option agreement with Timberline Resources Corp. granting Timberline an option to acquire a 100 per cent interest in Gunpoint's Talapoosa gold project in Nevada. The option is worth $300,000 (U.S.) and 2 million shares of Timberline common stock.
The option allows Timberline to buy 100 per cent of Talapoosa during the option period for $10-million (U.S.).
"We believe this is an excellent transaction for Gunpoint. Timberline has the technical team and experience to advance Talapoosa to the feasibility stage notwithstanding the existing challenging market conditions," said Randy Reifel, chairman of Gunpoint.
Gunpoint acquired Talapoosa from Chesapeake Gold Corp., which resulted in Chesapeake becoming a majority shareholder with a 73-per-cent interest in Gunpoint.
Gunpoint has conducted extensive exploration work on Talapoosa including core drilling and metallurgical testing, the company said. This work increased the size of the mineral resource and gold grade, compared to the previous resource estimate, by 40 per cent and 20 per cent, respectively. In addition, the technical work indicated that Talapoosa is amenable to a heap leach operation which has attracted industry interest in the project, the company said.
New Look Eyewear Inc. announced fourth-quarter revenues of $40.8-million, up nearly 60 per cent from a year earlier. Adjusted net earnings rose to 21 cents per share from 17 cents a year earlier. The results modestly missed estimates from two analysts, who on average were looking for revenues of $41.28-million and EPS of 24 cents, according to Thomson Reuters.
Golden Queen Mining Co. Ltd. reported a net loss of $8.5-million, or 9 cents, per share, for the full-year 2014, compared with net income of 2 cents per share a year earlier.
GuestLogix Inc. released its fourth-quarter results, with revenues for the full-year reported at $36.8-million, matching Street expectations. The net operating loss for full-year 2014 was $6.6-million.
Concordia Healthcare Corp. announced that it has entered into an agreement with a syndicate of underwriters led by RBC Capital Markets for a bought deal financing consisting of 3.7 million subscription receipts at a price of $85 (Canadian). Gross proceeds will be $320-million. An over-allotment option could bring the deal to $368-million.
Each subscription receipt will entitle the holder receive one Concordia common share.
Endeavour Silver Corp. has initiated a major expansion of its El Cubo mine in Guanajuato state, Mexico. The company plans to ramp up mine output over the next four months from 1,550 tonnes per day, the current El Cubo plant capacity, to 2,200 tpd.
The main reason for the mine expansion is to drive operating costs lower and generate free cash flow at El Cubo by taking advantage of the available plant capacity at Bolañitos, the company said.
The company has revised its silver production estimate for 2015 upwards by 11 per cent to a range of 6.3-7.0 million ounces. Gold production guidance increases by 27 per cent to the 60,000-66,000 oz range.
Starcore International Mines Ltd. reported revenues of $7.1-million and a loss of $116,000 for the second quarter ended Jan. 31 compared with revenues of $8.4-million and earnings of $1.6-million in the year-earlier quarter. The company, owns the San Martin silver and gold mine in Queretaro, Mexico, the lower earnings were due to lower metal prices in the quarter.
Camino Minerals Corp. said Ken McNaughton has been appointed as the company's president and chief executive officer and the company's board of directors. Gordon Davis has resigned as CEO and chairman of the board, effective immediately, the company said. Mr. Davis will remain a director of Camino.
Mr. McNaughton is a geological engineer with over 30 years of global experience developing and leading mineral exploration programs. Prior to becoming vice-president of exploration for Pretium Resources Inc. in 2011, he was senior vice-president of exploration for Silver Standard Resources Inc. where he had been responsible for all exploration programs since 1991. These programs included the discovery and delineation of the Camino Rojo deposit for Canplats Resources Corp. in Mexico, as well as several other notable projects in Mexico, Argentina, and Peru.