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James Skippen, CEO of Wi-LAN at his Ottawa office. (Jonathan Hayward)
James Skippen, CEO of Wi-LAN at his Ottawa office. (Jonathan Hayward)

Small caps

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Patent licensing firm Mosaid Technologies has struck new year highs as it moved from being hunted to being the hunter. Mosaid, currently subject of a hostile $490-million cash takeover bid from WiLAN Inc. , has acquired Core Wireless Licensing S.a.r.l., a Luxembourg company that holds a portfolio of 400 patent families, consisting of approximately 2,000 wireless patents and patent applications originally filed by Nokia. Core Wireless will operate as a wholly owned subsidiary of MOSAID.

Foundation Resources jumped as much as 50 per cent and had more than 1.5 million of its shares change hands on the TSXV in the early minutes of Thursday's trading session. On Aug. 23, Foundation announced the results of three more drill holes from the Sanders and East zones of the East Coldstream Gold Deposit, Northwestern Ontario. Foundation Resources is focused on exploration and development of the Coldstream Gold Property in Ontario and the San Rafael Gold-Silver Property in Durango, Mexico.

Stellar Pacific Ventures , a Canada-based international mining company with exploration activities in Northern Quebec, has been cited as one of the companies that could benefit from news that sent shares in both Diamond Frank Exploration and Typhoon Exploration shooting up by as much as 50 per cent yesterday. Stellar Pacific, which closed unchanged at 9 cents but saw 1.5 million shares change hands yesterday, has completed a compilation which confirms a four kilometre long gold mineralized corridor on its recently optioned Monster Lake Property in the Chibougamau, Quebec mining camp.

Diamond Frank and Typhoon Exploration were both among the most actively traded on the TSXV yesterday as Typhoon announced a new series of drill results from the ongoing infill program on the Fayolle Project located 20 kilometres north-east of Rouyn-Noranda, Quebec and 10 kilometres north of Aurizon's Joanna Project. Typhoon is involved in a drilling campaign on the Destorbelle Project with Diamond Frank Exploration. The Destorbelle Property is located less than eight kilometres west of the Fayolle Deposit.

Despite recent declines, Aurizon Mines Ltd. is another company seen by investors as a possible beneficiary of drill results from the ongoing infill drilling program on the Fayolle project. The targeted area is located along the Manneville Structural Zone, an extension of the Destor-Porcupine fault zone. Since May 2010, Aurizon has invested $5-million on two drill programs under the joint venture agreement announced on May 18, 2010 with Typhoon Exploration Inc. . The Fayolle property is 100 per cent owned by Typhoon and Aurizon can earn a 50 per cent interest, subject to an underlying 2 per cent net smelter royalty, by incurring expenditures of $10-million, and subscribing for $2-million in common shares of Typhoon, over four years. Aurizon can earn an additional 15 per cent interest for a total interest of 65 per cent by either delivering a feasibility study or spending an additional $15-million on the project.

Canada-based international oil and gas corporation Canacol Energy Ltd. , which had been trading close to a year low 85 cents, last night announced that its Colombian subsidiary has been awarded a contract by Ecopetrol S.A. for a 100 per cent working interest in the associated gas and gas liquids stream from the Rancho Hermoso Field, located in the Llanos Basin of Colombia. Under the terms of the contract, Canacol will purchase the produced gas from Ecopetrol S.A. at a price of $6.50 (U.S.) per thousand British Thermal Units ($15.48 (U.S.) per thousand standard cubic feet per day), which includes the associated liquids, those being naphtha, propane and butane. The contract will be effective on Jan. 1, 2012, and Canacol anticipates adding approximately 2,300 net barrels per day of naphtha, propane and butane to its existing oil production stream from the approximately 5.7 mmscfpd of gas production forecast for January 2012. Canacol also announced that the spud of the Rancho Hermoso 11 development well on Aug. 29, 2011, approximately one month behind schedule due to a delay in obtaining the environmental license for the well. All of the relevant licenses for the remaining wells to be drilled in the field have been obtained, it said.

Flint Energy Services Ltd. went up by as much as 4 per cent early Thursday after announcing that it has entered into a definitive agreement to acquire all of the issued and outstanding shares of Carson Energy Services Ltd., a privately held energy services company based in Saskatchewan. The company said the purchase price to be paid at closing is comprised of $112-million in cash and 2 million Flint common shares, plus up to an additional $30-million earn-out spread over the next three years, subject to closing adjustments.

Rubicon Minerals Corporation announced that Franco-Nevada Corporation has purchased all of the right, title and interest of Dominion Goldfields Corporation in the 2 per cent net smelter returns royalty payable on that part of Rubicon's Phoenix Gold Project in Red Lake, Ontario lying beneath the waters of Red Lake (i.e. excluding mining properties covering the land portion of the Project). The transaction did not trigger any rights of first refusal on the royalty, however, the royalty remains subject to Rubicon's prior right, exercisable at any time, to purchase 25 per cent of the Royalty (being 0.5 per cent of the 2 per cent net smelter returns) for $675,000 (U.S.). Rubicon acquired the Phoenix Gold Project under option from DGC in 2002 and later earned, subject to the royalty, a 100 per cent interest in and to the Project.

Century Mining Corporation , which had been trading near a year low 21 cents, last night announced that the company has received a letter from Ms. Margaret (Peggy) Kent, the former president and CEO of the company, regarding Century's proposed business combination with White Tiger Gold Ltd. in which Ms. Kent confirms her support for the proposed business combination and her intention to vote FOR the proposed business combination.

On March 14, 2011, Century and White Tiger announced the entering into of an arrangement agreement regarding a proposed business combination whereby Century shareholders would receive 0.4 of a White Tiger Gold share for each Century share under a plan of arrangement. Completion of the business combination remains subject to, among other things, the approval of the disinterested shareholders of each of Century and White Tiger Gold at the special meetings of each company to be held on Sept. 13, 2011, approval of the Ontario Superior Court of Justice and any required approval under the Investment Canada Act and final approval of the TSX.

Zarlink Semiconductor went up by as much as 4 per cent early Thursday after announcing that its Board of Directors unanimously recommends that shareholders and debenture holders reject the unsolicited offers of Aug. 17, 2011 by Microsemi Corporation's wholly-owned subsidiary to purchase all of the company's outstanding common shares at $3.35 per share. Adam Chowaniec, Zarlink's Chairman, reportedly said: “the Microsemi Offers significantly undervalue Zarlink, are highly opportunistic as they come at an inflection point in Zarlink's financial, technological and operational repositioning and do not provide our shareholders and debenture holders with the value of our repositioning.”

Animas Resources had a third to its value early Thursday after announcing plans last night to raise $3.4-million from a new controlling shareholder, selling 17 million equity units in a non-brokered placement priced at 20 cents each to Ernesto Echavarria, a Mexican businessman who increasingly has been building stakes in Canadian miners over the past two years. Assuming shareholder approval for the transaction, Echavarria will own 39.1 per cent of Animas stock. Animas also has appointed a new management team, led by CEO John Wilson, and will shift the company's focus on gold production at its Santa Gertrudis gold project in Mexico while selling its interest in the Kinsley Mountain project in Nevada

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