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 Mining Corp. (LUN-T) says it intends to make a formal offer for Nevsun Resources Ltd. (NSU-T) for $4.75 per share in cash. The offer price is a 33-per-cent premium to the closing price on April 30, when Lundin announced a prior proposal to Nevsun and values Nevsun at $1.4-billion, the company said.
“We believe that the proposed Nevsun acquisition consideration is full and fair value and represents a significant premium to Nevsun’s unaffected share price prior to the announcement of our first proposal,” stated Lundin Mining CEO Paul Conibear.
In response, Nevsun advised shareholders in a release that no formal offer has yet been made and recommends that shareholders “take no action in response to Lundin’s announcement.”
“This latest announcement from Lundin continues to ignore the fundamental value of Nevsun and its assets,” stated Nevsun CEO Peter Kukielski.
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Trilogy Metals Inc. (TMQ-T: TMQ-N) reported a second-quarter loss of $3.7-million or 3 cents per share compared to a net loss of $2.4-million or 2 cents for the same time last year. “This variance was primarily due to the difference in mineral properties expense,” the company said. “An increase of $1.2-million of mineral property expenses occurred during the three months ended May 31, 2018 compared to the three months ended May 31, 2017.”
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Dundee Corp. (DC.A-T) says its subsidiary Goodman & Company Investment Counsel Inc. has increased its stake in Cantex Mine Development Corp. (CD-X) to 13 per cent from 9 per cent. It bought 2 million units at 15 cents each. Each unit consists of one flow-through share and one warrant, the latter of which is exercisable for the purchase of one common share at 20 cents for 36 months.
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Mainstreet Equity Corp. (MEQ-T) said rental revenues increased 11 per cent in its third quarter to $29.3-million, compared with $26.4-million a year ago. Funds from operations increased 16 per cent to $7.8-million, compared with $6.7-million a year ago and slightly ahead of expectations of $7.3-million. Net operating income rose 10 per cent to $18.3-million.
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Héroux-Devtek Inc. (HRX-T) says it has been selected by The Boeing Co. to manufacture the F/A-18 Super Hornet and EA-18G Growler main landing gear and side braces.
“Héroux-Devtek will manufacture and assemble the main landing gear and side braces for all the Boeing requirements involving new production and spare parts, with first deliveries in [the] third quarter of 2020,” the company stated.
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Scythian Biosciences Corp. (SCYB-X) says Aphria Inc. (APH-T) is buying its Latin American and Caribbean assets. Aphria was also granted a right to purchase up to 90 percent of an entity in Brazil that Scythian is currently seeking to acquire.
Aphria will issue $193-million in shares to Scythian and assume US$1-million in liabilities of the target corporations owing to Scythian “resulting in Scythian having well over $200-million in cash and marketable securities on hand,” the company stated. “The substantial liquidity provided by the transaction will enable additional potential transactions that underpin Scythian’s strategic transformation towards enhancing its global cannabis foundation.”
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Baylin Technologies Inc. (BYL-T) says its newly acquired Kirkland, Que. subsidiary, Alga Microwave Inc. has received multiple orders totaling more than $1.6-million dollars from a European NATO customer for its X-Band satellite communication transceivers.
“These orders represent the continuation of a long-standing relationship with an important European NATO customer and further solidify Alga’s position as a global provider of leading-edge satellite communications equipment,” said Baylin CEO Randy Dewey.
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Largo Resources Ltd. (LGO-T) says it expects to report revenue of between $99-million and $107-million for the second quarter, which it called “a new quarterly revenue record.” The revenue would represent an increase of between approximately 176.6 per cent and 198.9 per cent over the same period last year, the company said.
“The increase to revenue is expected to be driven largely by the upward movement in vanadium pentoxide pricing and increased production,” when compared to the same period last year.
“Management anticipates that the overall benefit of the increased revenues will be tempered by increases in corresponding royalty expenses and certain largely non-cash foreign exchange adjustments anticipated to be required as a result of the weakening of the Brazilian Real against the US [dollar] given that certain of the company’s debts in Brazil are denominated in US [dollars].”
The company said it expects the foreign exchange loss in the second quarter, which will exceed the loss recorded for the same period last year.