Lundin produces copper, zinc, nickel and lead from mines in Europe, Africa and the United States.Reuters
Our roundup of Canadian small-caps of between $100-million and $2.5-billion in market capitalization making news and on the move today.
Black Diamond Group Ltd. (BDI-T) says it has bought a fleet of 116 modular units from Ottawa-area company Travelite Trailers Inc. for $1-million.
"This acquisition will bolster the recent expansion into the Ottawa market ... and will leverage the established presence of Travelite dating back to 1967," said CEO Trevor Haynes in a release.
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Strad Energy Services Ltd. (SDY-T) is raising $10-million in a bought-deal financing to fund growth.
The company said it has an agreement to sell nearly 6 million shares at $1.68 each.
The net proceeds will be used to reduce debt and free up borrowing "that may be redrawn as required to fund the corporation's ongoing capital expenditure program, potential acquisitions that may be identified from time to time and for general working capital and corporate purposes," the company said.
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Serinus Energy Inc. (SEN-T) says it has temporarily shut-in production at the Chouech Es Saida field in Tunisia due to a work stoppage which has continued longer than expected.
"The company fully recognizes and supports the rights of its employees to take work action, however the safety of our employees and the facilities is paramount," the company said. "The company shut-in production for safety and security reasons on the presumption that production would be brought back online following the end of the labour action. As the labour action includes a sit-in that has persisted after the communicated work action, the company is unable to bring production back on line and must continue its shut-in of the facility for safety and security reasons."
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Fairfax India Holdings Corp (FIH.U-T) is investing about $30-million for a 51-per-cent equity ownership in Saurashtra Freight Private Ltd.
In a release, the company said Saurashtra Freight will use the proceeds to acquire the Container Freight Station business from Saurashtra Infra and Power Private Limited and for future expansion.
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Lundin Gold Inc. (LUG-T) says it has secured a $35-million credit facility from Zebra Holdings and Investments S.à.r.l., Luxembourg, a company owned by a trust of late Adolf Lundin.
The lender is an insider of Lundin Gold, the company said in a release
"We are pleased to receive the continued support of our largest shareholder at this critical time of the project," stated CEO Ron Hochstein. "The proceeds from the facility will allow us to continue discussions and negotiations on financing initiatives without affecting the progress of the Early Works program."
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Coeur Mining Inc. (CDE-T) says Pan American Silver Corp. (PAAS-Q; PAA-T) is buying its Joaquin project in southern Argentina for $15-million in cash and $10-million in Pan American stock.
Coeur will also retain a 2 per cent net smelter returns royalty on the Joaquin project.
"This transaction reflects our strategy to monetize non-core assets and redeploy the proceeds into higher-quality, higher-return, nearer-term growth opportunities," stated Coeur CEO Mitchell Krebs in a release.
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UrtheCast Corp. (UR-T) says it has an agreement with a confidential government customer for the sale and shared operation of the first two of its earth observation constellations, known as OptiSAR, for $180-million (U.S.).
The customer has also agreed to pay an additional $30-million for other products and services related to the sale of the satellites.
"This milestone in the OptiSAR program is the result of years of technology development and many months of contract negotiations," said CEO Wade Larson in a release. " .. We believe this contract will accelerate the negotiation of similar agreements with other customers for the purchase of the remaining satellites."
UrtheCast said the agreement is its first successful conversion of the three previously announced memoranda of understanding (MOUs) for the purchase of OptiSARTM satellites into binding contracts and that it's in "advanced discussions" with the remaining MOU counterparties and other potential customers.
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Africa Oil Corp. (AOI-T) announced an oil discovery on its Erut property in Kenya.
"We are very pleased with this result which further confirms the potential of the northern portion of the Lokichar Basin unlocked by the Etom-2 discovery," stated CEO Keith Hill in a release. "We are very keen to expand our current drilling program to test additional prospects in the area which have now been de-risked by this discovery. Increasing discovered volumes will further enhance the development and pipeline project planning currently moving forward."
Africa Oil Corp. has a 25-per-cent working interest with Tullow (50 per cent) and Maersk Oil holding the remaining 25-per-cent interest.
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Timmins Gold Corp. (TMM-T; TGD-N) said Greg McCunn will succeed Mark Backens as the company's new CEO effective Feb. 1. Mr. McCunn will also serve as a director on the company's board.
Mr. McCunn was most recently chief financial officer of Asanko Gold (AKG-T;AKZ-A).
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NewCastle Gold Ltd. (NCA-T) says it will begin trading on the Toronto Stock Exchange today.
"The TSX is the premier stock exchange for resource companies and NewCastle Gold believes that the move to the main board will facilitate greater access to a broad range of international and institutional investors and capital pools," the company said in a release. "Increased exposure for the company coincides with the advancement of its flagship asset, the Castle Mountain gold project in eastern California... "
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Golden Star Resources Ltd. (GSS-N; GSC-T) is raising $30-million in a bought deal agreement led by Clarus Securities Inc. and including National Bank Financial Inc., BMO Capital Markets, Scotia Capital Inc., and CIBC World Markets Inc.
They've agreed to purchase about 27.3 million shares at a price of $1.10 each. Proceeds will be used to fund exploration, for capital expenditures at the Wassa Gold Mine and the Prestea Gold Mine and to pay off debt.
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Just Energy Group Inc. (JE-T; JE-N) will redeem the outstanding $94.6-million principal amount of its 6 per cent convertible debentures scheduled to mature on June 30, on Feb. 21.
"Completing the early redemption of the remaining June, 2017, convertible debentures is a significant milestone in our strategic reset of the company's debt profile," stated chief financial officer Patrick McCullough in a release. "Today's announcement supports our ongoing commitment to achieving and maintaining a strong, stable balance sheet, while pursuing strategic growth."
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Americas Silver Corp. (USA-T) says its shares have been approved for listing on the New York Stock Exchange as of Jan. 19 under the ticker symbol "USAS."
"Listing on the NYSE market is an important milestone for Americas Silver, which will create greater exposure among institutional and retail investors in the U.S. and internationally at this important time of growth for the company," said CEO Darren Blasutti in a release.
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Holloway Lodging Corp. (HLC-T) has sold the Holiday Inn hotel in Oakville, Ont. for $19.4-million, representing a cap rate of approximately 7.4 per cent.
Holloway estimates that it will record a gain on sale of about $7.9-million in the first quarter of 2017 and does not anticipate paying any tax on the sale of this property.
Holloway will apply the sale proceeds to reduce its debt.
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Goodfellow Inc. (GDL-T), a lumber and hardwood flooring products manufacturer, named Patrick Goodfellow, previously a vice-president, as president and CEO, replacing Denis Fraser who is stepping down immediately.
"On behalf of the board of directors, we would like to thank Mr. Fraser for his efforts and dedication over the last two years. We wish him well in his future endeavours," said chairman Claude Garcia in a release.
"Mr. Patrick Goodfellow has been running the Hardwood division over the last 10 years and is considered by the board as the right person to lead the corporation in its efforts to return to profitability."
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Lithium Americas Corp. (LAC-T) has signed an investment agreement with GFL International Co. Ltd. for funding to advance the construction of the Cauchari-Olaroz lithium project in Argentina.
Ganfeng has agreed to invest $174-million (U.S.) in exchange for 19.9 per cent of the outstanding common shares of Lithium Americas and a right to buy a fixed portion of the lithium carbonate production from the Cauchari-Olaroz project.
The agreement also includes a $125-million project debt facility
"We are delighted to welcome Ganfeng as a partner and as our largest shareholder," stated CEO Tom Hodgson. "We have long believed that the right partnerships bring important benefits to the Cauchari-Olaroz project, the local communities in Jujuy, and to our shareholders."
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