Gold one kilogram bars and silver one kilogram bars are seen in this arranged photograph at Gold Investments Ltd. bullion dealers in London, U.K., on Jan. 15, 2014.Chris Ratcliffe/Bloomberg
Our roundup of Canadian small-caps making news and on the move today.
Toronto-based Silver Bullion Trust (SBT.UN-T) said its unitholders voted to reject proposed amendments to its Amended and Restated Declaration of Trust to include a new physical bullion redemption feature and to amend the trust's existing cash redemption feature made by Polar Securities Inc. on behalf of its Cayman Islands-based hedge fund, North Pole Capital Master Fund. Unit holders also voted today to reject Polar's proposal to replace all of SBT's independent trustees and voted to elect all of SBT's trustee nominees to the Board.
"We thank the trust's unitholders for their consideration and for their support during this difficult process," said Bruce Heagle, Chair of the company's special committee of independent trustees. "Your trustees strongly believe that Polar's proposals were self-serving and not in the best interests of all unitholders. We are pleased that SBT unitholders voted overwhelmingly to reject Polar's proposals and to elect all of SBT's nominees to the board. Your trustees will continue to act in the best interests of the trust and all of its unitholders."
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Calgary-based Sylogist Ltd. (SYZ-X), a provider of enterprise information management solutions to public and private sector customers, reported revenues of $7-million for the second quarter ended March 31, up from $3.1-million a year ago. Adjusted EBITDA rose to $3.1-million from $1.1-million a year ago. Profits were $900,000 or 4 cents per share, down from $1.3-million or 6 cents per share a year earlier. The company also said it was increasing its quarterly dividend to 6.25 cents per share, which will be payable on June 17.
"In the second quarter of fiscal 2015 Sylogist experienced another quantum change in growth, with the contribution of the Serenic operating companies. Quarterly year-over-year revenue increased 124 per cent to $7-million while adjusted EBITDA rose by 176 per cent to $3.1-million or 12 cents per share. Sales and marketing efforts have been increased as we see the opportunity for continuing organic growth, which increased 25 per cent over the prior year. With industry-leading financial metrics, an exceptionally strong balance sheet and growing free cash flow, we continue to pursue appropriate acquisitions, principally today in Canada and the United States. Sylogist put in place a normal course issuer bid to potentially acquire its own shares and is further rewarding its shareholders by increasing its quarterly dividend to 6.25 cents per share," said Jim Wilson, the company's chairman, president and CEO.
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Toronto-based Gale Force Petroleum Inc. (GFP-X) said it has entered into an agreement to sell 80 per cent of its 99 per cent working interest in its Pine Mills property in Wood County, Texas, for $2-million (U.S.). The closing of the transaction is expected in early June, and is subject to customary environmental and title due diligence.
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Calgary-based ExGen Resources Inc. (EXG-X) said that, together with its subsidiary Konnex Resources Inc. it has entered into a Letter of Intent with Phoenix Global Mining Ltd., a private British Virgin Islands-based mining company focused on base metals development to earn an 80 per cent interest in the Empire Mine Project.
The LOI allows Phoenix to acquire 80 per cent of Konnex, ExGen's subsidiary that holds the leases to the Empire Mine Project, on the following terms: ExGen will retain a 20 per cent carried interest until commencement of mine construction; will be granted a 2.5 per cent net smelter returns royalty for all metals on the Empire Mine Project; ExGen will be issued 10 million common shares of Phoenix; Phoenix to fund a minimum of $1-million (U.S.) within 18 months of signing the definitive agreement; Phoenix will fund all Empire Mine Project property maintenance and sustaining costs of Konnex.
"We are pleased to have such an experienced group like Phoenix working with ExGen to put the Empire Mine back into production. This deal is a watershed event for ExGen as it provides the Company with a potential path to cash flow and significantly validates our joint venture and royalty business model," said Jason Riley, CEO of ExGen.
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Calgary-based Computer Modelling Group Ltd. (CMG-T), a software technology company serving the oil and gas industry, reported revenue of $84.9-million for the fiscal year ended March 31, up from $74.5-million a year earlier. Net income was $32.6-million, or 42 cents per share, up from $27.6-million, or 36 cents per share, a year ago. Analysts were expecting revenues for the year of $85.8-million and profits of 40 cents per share.
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Calgary-based Ikkuma Resources Corp. (IKM-X) reported record production of 7,121 barrels of oil equivalent in the first quarter ended March 31. Oil and natural gas sales fell 36 per cent to $10.8-million "due to the significant decline in commodity prices," the company said. Funds flow from operations was $1.9-million, or 2 cents per share. The loss for the quarter was $4.9-million, compared to a year earlier loss of $2.2-million.
Ikkuma's 2015 capital budget has been increased from $23-million to $28-million, due to the additional costs incurred for the second well drilled and higher than expected tie-in costs for the successful recompletions, the company said. The majority of Ikkuma's remaining 2015 capital program will be used to tie-in tested volumes, which is expected to be largely completed by the fourth quarter. Production guidance has been increased with a 2015 exit rate of 9,000 to 9,300 boe/d; and 2015 average production of 7,500 to 8,000 boe/d, the company said.