An oil pumpjack sits unused in a field north of Edmonton AlbertaJASON FRANSON/The Globe and Mail
Inside the Market's roundup of some of the Canadian small caps making news and on the move today. This post will be updated throughout the morning
Waldron Energy Corp. said it has hired Cormark Securities Inc. to help with asset sales, a merger, or the outright sale of the company.
"While due consideration will be given to all alternatives, the board of directors of the corporation believes that a sale of one or a combination of assets is most likely to best enhance shareholder value."
"Taking into account recent transactions, Waldron's board has determined that the corporation's shares trade at a significant discount to the inherent value of the corporation's high-quality oil and liquids rich natural gas properties, which are also characterized by high working interests and high operatorship. The board believes a large reason for the trading discount is the corporation's relative debt level. Undertaking a process to dispose of individual assets will widen the market of potential acquirers and may result in more attractive deal metrics."
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Southern Pacific Resource Corp. said its board has initiated a process to identify, examine and implement "strategic and financial alternatives available to the company in order to address its liquidity and capital structure." These include the sale of the company or all or a portion of its assets, recapitalization, debt restructuring. RBC Capital Markets have been retained as the Company's financial advisor to assist with this process.
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Fortress Paper Ltd. said Investissement Quebec has amended its $102.4-million project-financing loan for its Thurso mill , extending the maturity date from April 30, 2020 to December 31, 2026. No principal will be repaid and no interest shall accrue on the loan from May 1, 2014 to December 31, 2016, after which the rate will be 5 per cent annually.
"As evidence of the company's commitment to improving the performance of the FSC Mill, pursuant to the amendment agreement, the FSC Mill has agreed to incur aggregate capital expenditures of at least $25-million during the fiscal years ending on December 31, 2014, 2015 and 2016, which is less than what management had anticipated spending during this period."
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Artek Exploration Ltd. said it has entered into purchase and sale agreements to dispose of "certain non-core assets" in the Peace River Arch area of Alberta for $21.85-million.
"Pro-forma completion of the dispositions, Artek anticipates average production for 2014 to be approximately 4,200 boe/d consistent with previously released guidance and expects to meet its previously released exit guidance of 5,500 to 5,600 boe/d of which in excess of 40% is anticipated to be oil and natural gas liquids."
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Athabasca Oil Corp. said its board approved an initial 2015 capital budget of $266-million, which includes $58-million of carryover from the 2014 budget. "The 2015 capital program is fully funded, with Athabasca anticipating an ending 2014 funding position of approximately $1.3-billion, including cash, undrawn credit facilities and promissory notes receivable."
"Recognizing that Athabasca's 2014/15 winter drilling program will not have a material contribution to production until the second half of 2015, first quarter guidance is approximately 5,000 boe/d largely reflecting base declines. Assuming no additional spending beyond the winter program the Company's exit guidance for 2015 is between 7,000 to 8,000 boe/d and only incorporates production from seven of the 11 Duvernay wells."
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Benz Capital Corp. announced that it has signed an agreement with Tusk Exploration Ltd. for the option to acquire 100 per cent of the San Javier Copper Project in Sonora, Mexico for $9.2-million in cash and shares.
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Klondex Mines Ltd. said that its subsidiary has entered into an agreement to process ore from LKA Gold's mine in Colorado. "This agreement marks the second toll milling agreement put in place since we bought Midas in February. Processing third-party material makes good use of the mill, while still leaving us with ample capacity as we continue to develop the Midas and Fire Creek mines."
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SEMAFO said that operating activities at its Mana Mine in Burkina Faso resumed today after a three-day suspension due to a labour dispute. The firm is maintaining its full-year production and total cash cost guidance following the brief interruption.
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Bedrocan Cannabis Corp. said its Canadian subsidiary's licence to sell medicinal cannabis has been renewed for a year. The company aims to shift from importing cannabis from the Netherlands to domestic production at a plant in the Greater Toronto Area in the second quarter of 2015, pending approval from regulators.
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AG Growth International Inc. said the underwriters of its offering of subscription receipts and convertible debentures have exercised their over-allotment option in full. This sale raises an additional $13.5-million for the company, bringing the total proceeds from the offering to $103.5-million. The proceeds are being used to help finance the company's acquisition of Vicwest's Westeel division.