Solvista Gold (V.SVV) soars 31% on IAMGOLD’s (T.IMG) option agreement

Elizabeth Walters Elizabeth Walters, Stockhouse
0 Comments| December 18, 2013


Stockhouse Canadian Small and Micro-cap Stock Report for Wednesday, December 18, 2013 VANCOUVER (SHfn) –  
 
Solvista Gold Corp. (TSX: V.SVV, Stock Forum) rose 31.3% to 10.5 cents after the gold explorer announced that it has entered into an agreement with IAMGOLD Corp. (TSX: T.IMG, Stock Forum) that sets out the major terms of a 70% earn-in option agreement in Solvista’s Caramanta gold project, located in Colombia's Mid- Cauca Belt. IAMGOLD can earn an initial 51% interest in the project by investing a total of US$18 million in qualifying expenditures, which includes US$900,000 of cash payments to Solvista, over a maximum five-year period commencing on Dec. 16, 2013, with IAMGOLD as the project operator. Furthermore, IAMGOLD can earn an additional 19% interest in the project, for a total 70% interest, by investing a further US$18 million in qualifying expenditures over a maximum three-year period following the completion of the initial 51% earn-in.

Alexander Energy Ltd. (TSX: V.ALX, Stock Forum) gained 21.7% to 73 cents after the oil and gas junior announced that it has entered into a definitive purchase and sale agreement to acquire a high quality, low decline, crude oil producing asset located in southeast Saskatchewan from an arm's length oil and gas producer. The assets include over 370 barrels of oil per day of primarily light oil production (with a historical annual decline of approximately nine to 10%) producing from the Frobisher and Midale formations. The purchase price for the assets is $32.5 million, subject to normal adjustments based on a Dec.1, 2013 effective date. The closing of the acquisition is subject to customary conditions and is expected to close on or about Feb. 3, 2014.

Additionally, Alexander said today that it has increased its previously announced bought deal financing agreement detailed in its press release issued earlier this morning with a syndicate of underwriters, whereby the company will now issue 153 million special warrants at a price of $0.49 per special warrant, for aggregate gross proceeds of approximately $75.0 million. In all other respects the terms of the brokered financing, the previously announced contemporaneous non-brokered financing and the use of proceeds will remain as previously disclosed in the earlier press release. The offering is scheduled to close on or about Jan. 14, 2014.

Balmoral Resources Ltd. (TSX: T.BAR, Stock Forum) was up 11% to 35 cents. The stock is reacting to news of the mineral explorer’s highest grade gold intercept to date from the Martiniere West Gold Zone on its Detour Gold Trend project in Quebec. Hole MDW-13-88, testing a revised geological model at shallow depths within the central portion of the Martiniere West Zone, returned an intercept of 10.62 grams per tonne gold over 21.44 metres, including a bonanza grade core intercept of 108.00 grams per tonne gold over 1.95 metres. This intercept is nearly double the grade of the highest grade intercept from previous drilling testing the West Zone.
 
Colossus Minerals Inc. (TSX: T.CSI, Stock Forum) lost 2.9% to 16.5 cents as investors assessed the news that the resource company will seek the approval of the holders of the unsecured gold-linked notes due Dec. 31, 2016 issued by Colossus to amend the terms of the notes at a meeting to be held in Toronto, Ontario on January 10, 2014. The noteholders' meeting is called pursuant to the provisions of the trust indenture dated Nov.  8, 2011 between Colossus and Equity Financial Trust Corp. The noteholders' meeting is being held to approve, an extraordinary resolution to authorize Colossus to amend the terms of the indenture to, among other things: (a) defer, until June 30, 2015, the payment of accrued interest on the notes on each of Dec. 31, 2013, June 30, 2014 and Dec. 31, 2014; and (b) reduce the principal amount outstanding on the notes from time to time based upon the aggregate amount added to the company's stated capital account between Dec. 31, 2013 and June 30, 2015, all as more particularly described in the management's information circular in connection with the noteholders' meeting, which is expected to be filed as soon as practicable on sedar.

As has been previously disclosed, Colossus is in dire financial circumstances. Colossus believes that the noteholders' resolution is necessary in order for it to improve its balance sheet in order to raise the short term equity financing needed to implement the company's de-risking strategy and thereby make it more attractive to future investors and potential partners to a mergers and acquisitions transaction.


Select Canadian Small/Micro-cap Advancers (as of 4:00 PM Eastern)
Alexander Energy Ltd. (V.ALX, Stock Forum) 21.67%
Xmet Inc. (V.XME, Stock Forum) 15.00%
Mood Media Corporation (T.MM, Stock Forum) 13.11%
Hardwoods Distribution Inc. (T.HWD, Stock Forum) 8.06%
Kirkland Lake Gold Inc. (T.KGI, Stock Forum) 8.02%
Select Canadian Small/Micro-cap Decliners (as of 4:00 PM Eastern)
Asanko Gold Inc. (T.AKG, Stock Forum) -9.80%
PMI Gold Corporation (T.PMV, Stock Forum) -8.64%
Alacer Gold Corp. (T.ASR, Stock Forum) -4.07%
Thompson Creek Metals Company Inc. (T.TCM, Stock Forum) -3.92%
Redknee Solutions Inc. (T.RKN, Stock Forum) -3.50%


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