Junior miner slides 26% following mine closure

Stockhouse Canadian Small and Micro-cap Stock Report for Friday, November 30, 2012    

TORONTO (SHfn) – Richmont Mines (TSX: T.RIC, Stock Forum) shares dropped 26% to $2.82 on Friday after the gold miner reported the immediate closure of the Francoeur Mine in Quebec and the suspension of exploration activities on the Wasamac gold property, citing low realized grades, difficult mining conditions, and a tight labour pool for experienced miners as reasons for its decision. Richmont will take a pre-tax write-off of approximately $11 million to $13 million.

As well, shares of Border Petroleum (TSX: V.BOR, Stock Forum) rose 24% to 13 cents on volume of more than 1.9 million shares as the oil and gas explorer/developer announced the drilling of its first long-leg Slave Point horizontal well in the Red Earth area of northern Alberta. The well was drilled to a total depth of 3,250 meters, including a 1,630 meter horizontal leg. Logs indicated the presence of hydrocarbons in the Slave Point formation confirming what was seen in rock samples and recorded by the gas detector during drilling.

Isotechnika Pharma (TSX: T.ISA, Stock Forum), meanwhile, said that as a result of its partial award in regards to the ICC arbitration, ILJIN Life Sciences Co. is obligated to purchase 39.6 million common shares of Isotechnika issued from treasury at a price of approximately US 21.5 cents per share, for aggregate gross proceeds of US$8.5 million, and pay US$500,000 as a final license fee upon the Joint Steering Committee determining that the company has satisfactorily advanced the Phase 3 kidney transplant trial for voclosporin in accordance with the development plan. Isotechnika Pharma stock surged 100% to nine cents.   

And, Valterra Resource (TSX: V.VQA, Stock Forum) late Thursday reported that a second stage of metallurgical analyses of a +20kg grab sample from the discovery trench at the Bobcaygeon Graphite Property in Ontario, showed 65.6% graphite reported to jumbo and large flake size fraction classifications including 45.6% jumbo flake (+48 mesh or > 0.297mm). Valterra shares jumped 46% to 16 cents on Friday.