Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Osisko Gold Royalties Ltd (OR-T; OR-N) announced it will provide a senior-secured bridge credit facility to Stornoway Diamond Corp. (SWY-T) together with “certain secured lenders and key stakeholders.” The company said the bridge facility is being provided to support Stornoway during its strategic review process.
“We are working closely with Stornoway, its financial partners, and the Government of Québec to ensure the long term viability of the Renard Mine for the benefit of all stakeholders during these challenging times in the diamond market," stated Sean Roosen, CEO of Osisko.
Osisko owns a senior-secured 9.6-per-cent diamond stream on Stornoway’s Renard diamond mine and will continue to receive deliveries under its stream agreement.
Canfor Corp. (CFP-T) announced it will be curtailing operations at all of is British Columbia sawmills, except WynnWood, “due to very poor lumber markets and the high cost of fiber, which are making the operating conditions in B.C. uneconomic.”
Canfor said the majority of mills will be curtailed for two weeks "or the equivalent, with extended curtailments of four weeks at Houston and Plateau, and six weeks at Mackenzie." It said the curtailments are scheduled to run from June 17 through July 26.
The curtailments will reduce Canfor’s production output by approximately 200 million board feet. Following the previously announced closure of Vavenby in July, Canfor said that it will have 12 sawmills in Canada, with total annual capacity of approximately 3.55 billion board feet.
Midas Gold Corp. (MAX-T) announced a $19.9-million bought-deal offering. The company said it has an agreement with a syndicate of underwriters to purchase about 33.2 million shares of the company at 60 cents each. The shares closed at 68 cents on Monday.
"The proceeds from the sale ... will be used to advance the feasibility study on, and permitting for, the redevelopment and restoration of the Stibnite Gold Project, Idaho, and general working capital," the company stated.
It said Paulson & Co. Inc. indicated its intent to maintain its roughly 29-per-cent stake in the company by participating in the offering. Also, its said Barrick Gold Corp. (ABX-T), which owns 19.6-per-cent of the company, has indicated it plans to participate to have a 19.9-per-cent ownership stake upon completion of the offering.
Dream Office REIT (D.UN-T) announced the sale of 700 De La Gauchetière Street West, a 986,000-square-foot-property in Montréal for gross proceeds of $322.5-million. The trust also said it’s in “advanced negotiations” to sell its property in Ottawa.
"The net proceeds from these potential dispositions will be used to repay debt, invest in our capital and development program and potentially repurchase units on an opportunistic basis," the company stated. "Assuming the successful completion of these sales, the Trust will no longer own any properties in the Ottawa and Montréal region and will increase its presence in the downtown Toronto and Greater Toronto Area to approximately 86.5 per cent of the carrying value of its income properties portfolio as at March 31, 2019."
MORE TO COME