Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Lundin Gold Inc. (LUG-T) says it has closed its previously announced senior secured project finance debt facility of US$350-million with a syndicate of seven senior lenders to fund the development and construction of the Fruta del Norte gold project in Ecuador. The company has also executed a gold concentrate offtake agreement to sell approximately half of its gold concentrate production over its first eight years of operations to Boliden, a high-tech metal company with a network of mines and smelters across Europe.
WestJet Airlines Ltd. (WJA-T) announced June 2018 traffic results with a load factor of 83.6 per cent, which it said was an increase of 0.7 percentage points year over year. Revenue passenger miles (RPMs), or traffic, increased 8.5 per cent year over year, while capacity, measured in available seat miles (ASMs), grew 7.5 per cent over the same period , the company said in a release.
Resolute Forest Products Inc. (RFP-N; RFP-T) issued a statement late Friday saying the U.S. Department of Commerce is formally revoking the countervailing duty order on supercalendered paper from Canada, retroactive to August 3, 2015.
“Collection of cash deposits on imports of SC paper from Canada will cease, and all cash deposits that have been collected from importers of record since August 3, 2015, will be returned with interest,” the company stated. It said its cash deposits as of June 30 total $60-million.
“The company will also receive accumulated interest on these deposits,” it said. “The precise timing of the refund will be set out in a Federal Register Notice to be published in the upcoming days.”
SIR Royalty Income Fund (SRV.UN-T) announced that its SIR Corp. operating entity from made certain amendments to its credit agreement. The agreement was amended in part to provide for an increase to the maximum available amount under its revolving term credit facility to $30-million from $10-million and an extension of the maturity date to July 6, 2021.
Frontera Energy Corp. (FEC-T) says it terminated its agreement to purchase 36.4 per cent of Pacific Midstream Limited and will be required to pay the International Finance Corp. a $5-million break fee.
Frontera said it will continue to be a 63.6-per-cent shareholder in PML, with the IFC holding the remaining 36.4-per-cent interest. “Frontera does not expect this transaction to have any impact on previously disclosed 2018 guidance metrics,” it stated in a release.
Lumina Gold Corp. (LUM-X) says its board of directors has unanimously approved a strategic reorganization of its business. It says all of Lumina’s concessions and properties, with the exception of the Cangrejos Gold-Copper Project, will be spun out to Lumina shareholders through a newly incorporated company, Luminex Resources Corp. The company said shareholders of Lumina will receive shares in Luminex in proportion to their shareholdings in Lumina and that there will be no change to shareholders’ existing interests in Lumina.
“Management believes that splitting the company’s assets will help illuminate the strategic regional concessions and partnerships that have been put in place over the last two years and support our medium-term goal of monetizing our most advanced assets at the appropriate time,” stated CEO Marshall Koval.
Luminex will be managed by Lumina’s current team of officers. Its board of directors will consist of three directors who currently sit on the Lumina Board, as well as two new directors who are independent of Lumina the company stated.
Precision said it has five active rigs in Kuwait on long-term contracts and expects the sixth rig to commence operations in the third quarter of 2019.