Plans also call for building the 370-kilometre Pacific Connector feeder pipeline, co-owned by Veresen and Williams Cos. Inc. of Tulsa, Okla., in an effort to bring in natural gas from suppliers in Wyoming and Colorado.Getty Images/iStockphoto
Inside the Market's roundup of some of the Canadian small caps making news and on the move today. This post will be updated through the morning.
M Partners this morning initiated coverage on Castle Mountain Mining Co. with a "buy" rating and one-year price target of $1.60 (Canadian), implying a rate of return of 158 per cent.
"In our view, Castle Mountain has reduced risk relative to most other development companies in North America as it is a past producer and has mining permits; consequently we believe the company's shares are likely to re-rate as the key development milestones on the horizon provide clarity on the path to production," commented M Partners analyst Derek Macpherson.
Castle Mountain is a gold exploration company with the right to acquire a 100 per cent interest in the past producing Castle Mountain mine, a potential open pit heap-leach project in San Bernardino County, California. Under previous ownership the Castle Mountain mine produced in excess of one million ounces of gold over a span of 10 years from 1992 to 2001, when operations ceased due to a low gold price environment. The company is working towards the restart of the Castle Mountain project and has completed a Preliminary Economic Assessment outlining three development scenarios.
Shares of Castle Mountain Mining were up 3.2 per cent at 64 cents in late morning TSX Venture trading.
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Descartes Systems Group Inc. reported its fiscal second-quarter financial results, which came in close to Street expectations. Revenue of $42.7-million was up 12 per cent year over year and matched analysts' forecasts, while adjusted earnings per share were 19 cents, beating the consensus of 16 cents.
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Tamarack Valley Energy Ltd.'s subsidiary, Tamarack Acquisition Corp., has entered into an agreement with Suncor Energy to acquire 100 per cent of Suncor's interests in the Wilson Creek area of Alberta for $168.5-million.
Tamarack says the acquisition is highly accretive and further bolsters the company's strategic Cardium-focused land position in the Wilson Creek area.
Tamarack increased its 2014 production guidance by 30 per cent and also announced a $125-million bought deal financing.
Canaccord Genuity analyst Steve Toth commented in a note, "Although on current production the acquisition appears relatively expensive, it includes highly strategic and underutilized infrastructure enabling TVE to essentially double production over the next year, which we expect the market will view positively." He raised his price target on Tamarack to $9 (Canadian) from $7.50 and maintained a "buy" rating.
Shares in Tamarack were halted just prior to market close on Wednesday. They resumed trading this morning and were last up 3.1 per cent at $7.66 on the TSX Venture Exchange.
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Shares of WSP Global Inc. resumed trading this morning after being halted late Wednesday on news it is acquiring Parsons Brinckerhoff Group Inc. for $1.24-billion (U.S.), a 13,500-employee, global professional services firm with a network of approximately 170 offices on five continents.
Shares opened down 90 cents, or 2.4 per cent, to $36.05 on the TSX.
To finance the acquisition, the company has entered into a public offering of 14 million shares via a bought deal at $35.85 as well as private placements with the Canadian Pension Plan and the Caisse de Depot, the company's two largest shareholders who each will purchase 5.58 million shares. In addition to the $902-million in equity, the company entered into a new credit facility consisting of a $800-million (U.S.) revolving facility, a $400-million term facility and a $400-million equity bridge facility.
"The acquisition significantly expands WSP's footprint in the U.S., a geography that we believe was previously underweight in the company's business, as well as adds substantially to the company's transportation practice," commented AltaCorp Capital Research analyst Chris Murray.
"We believe the acquisition provides an improved platform for the company to operate from, with enhanced geographical diversification, margin growth opportunities and additional balance in practice areas," he added. Mr. Murray maintained his $42 (Canadian) price target and "outperform" rating.
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Ivanhoe Energy Inc. has received notification from the Nasdaq Stock Market that it regained compliance with the minimum bid price rule for a Nasdaq listed issuer.
The bid price of the company's common stock closed at $1 (U.S.) per share or greater for the required 10 consecutive business days from August 18 to Aug. 29, 2014.
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Mercator Minerals Ltd. said the TSX will delist its common shares as of the close of business on Oct. 3 for failure to meet the continue listing requirements of the TSX.
Separately, the company announced Wednesday night the resignation of Roman Friedrich from the company's board of directors, effective immediately.
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NorthWest International Healthcare Properties REIT today announced that it has reached an agreement with a syndicate of underwriters to issue $35-million of convertible unsecured subordinated debentures on a bought deal basis.
The Debentures have a maturity date of Oct. 31, 2019, have a coupon of 7.25 per cent per annum and will pay interest semi-annually in arrears on Oct. 31 and April 30 in each year commencing on April 30, 2015.
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Northland Power Inc. has agreed to acquire an 85 per cent equity stake in three offshore wind projects, consisting of Nordsee One, a 332 megawatt (MW) project currently in advanced development, as well as Nordsee Two and Nordsee Three, which are in early stages of development, from RWE Innogy GmbH, Essen.
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MATRRIX Energy Technologies Inc. announced the appointment of Charlie Lloyd to the executive position of vice president - sales.
"Charlie is passionate about MATRRIX, especially as it relates to the success of our client's in executing complex horizontal and directional drilling programs," says president Richard T. Ryan. "Within our target markets of Western Canada and the US Permian Basin, Charlie will be keenly focused on meeting client needs. His elevated position within the MATRRIX organization is aligned with our desire for continued effective delivery of horizontal and directional drilling technology at very high standards."
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Hanwei Energy Services Corp. has completed the private placement of 25,659,057 common shares at a price of $0.192 per share for gross proceeds of $4,926,539.
Proceeds from this placement will be used for ongoing work over and development activities of the company's oil and gas holdings in its Leduc Lands in Alberta.
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GeoNovus Minerals Corp. has completed its previously announced non-brokered private placement of 11,545,000 units at a price of $0.05 (Canadian) per unit for gross proceeds of $577,250.
The company anticipates that its common shares will be delisted from trading on the TSX Venture Exchange at the close of business on Friday, Sept. 5, 2014, with trading of its common shares on the Canadian Securities Exchange to commence on Monday, Sept. 8, 2014, under the symbol "GNM" .
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Atna Resources Ltd. said that in August, its first full month of production, the Pinson Underground Mine in Nevada, produced and shipped approximately 2,275 tons of oxide ore at a grade of 0.348 oz/ton gold. This ore was sold to Newmont's Twin Creeks mill and processed prior to month-end.
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Mawson Resources Ltd. said it has recommenced drilling with a low-impact core sampler at the Palokas prospect at the Rompas-Rajapalot project in Finland.
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First Point Minerals Corp. is preparing to conduct a helicopter-supported drilling program this month at its Mich nickel-iron alloy property in Yukon. The 2014 fall program is designed to test the central portion of the key target area, with two angled holes drilled in opposite directions from the same set-up.
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Marathon Gold Corp. announced "very positive results" from channel samples cut from numerous trenches by diamond saws in a systematic manner along a 1100 -meter strike length of the Sprite Zone and a 700 meter strike length of the Rainbow Zone.
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Northern Vertex Mining Corp. has commenced a geologic mapping and sampling program at its Moss project near Bullhead City, Arizona, to identify and prioritize areas for future drilling where new resources may be discovered. "The potential for discovering new gold deposits is considered by management to be excellent," the company said in a statement.
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Pilot Gold Inc. announced results of recent step-out drilling at its Valley Porphyry discovery at its TV Tower project in Turkey. Pilot Gold has completed 13 drill holes to date at the Valley Porphyry, and has also secured permits to drill test most of the 1,400-metre length of the zone.
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Magellan Minerals Ltd. said it has negotiated a private placement financing of 30-million units at a price of $0.10 each, for gross proceeds of $3-million. Each unit consists of one common share and one-half of a share purchase warrant. Each whole warrant is exercisable into one additional common share at an exercise price of $0.18 per common share for a period of 18 months from the closing date. The proceeds will be used to finish the Coringa feasibility study that has been suspended since July 2013 and for general working capital purposes.