Bear Lake Gold (V.BLG) up 100% on Kerr Mines (T.KER) merger deal

Peter Kennedy Peter Kennedy, Stockhouse
1 Comment| January 24, 2014

Stockhouse Canadian Small and Micro-cap Stock Report for Friday, Janurary 24th, 2014 

TORONTO (SHfn) –  Baja Mining Corp. (TSX: T.BAJ, Stock Forum) jumped 66.7% to 5 cents Friday after the company said it has reached an agreement with Louis Dreyfus Metals Commodities to settle their legal disputes related to the Boleo Project in Baja California, Mexico. LDCMS commenced arbitration proceedings against Baja in the U.K. and British Columbia between May and June 2012 following reports of cost overruns at the Mexico project. Baja filed a counterclaim, a move that required it to post $200,000 with the London Court of Arbitration in England. That amount would have been paid to LDCMS in the event that legal costs were awarded to LDCMS as a result of the counterclaim.

Bear Lake Gold Ltd. (TSX: V.BLG, Stock Forum) soared 100% to 4 cents on news of a preliminary merger deal between the company and Kerr Mines Inc. (TSX: T.KER, Stock Forum). Under the terms of a letter of intent, Kerr is proposing to issue 1.4 units of Kerr for every one common share of Bear Lake. Kerr owns the McGarry gold mine in Kirkland Lake, Ont. Bear Lake is exploring for gold at Larder Lake in northeastern Ontario.

Carpathian Gold Inc. (TSX: T.CPN, Stock Forum) fell 22.2% to 0.07 cents after a suspension order at the company’s flagship Riachos dos Machados gold project in Brazil. The order was imposed by the state environmental agency. The company said work has begun to address the agency’s requirements, which include reinstating a drainage system damaged by heavy rainfall and reducing the volume of water within the tailings impoundment. Meanwhile the company said CEO Dino Titaro and executive vice-president Guy Charette have both stepped down. Charette will act as interim CEO.

San Gold Corp. (TSX: T.SGR, Stock Forum) fell 8.1% to 17 cents after the company released operating results from its Rice Lake mine in Manitoba. The company said it produced 15,118 ounces of gold in the fourth quarter, bringing full year production to 65,218 ounces. Ian Berzins, San Gold’s President and CEO said he is disappointed that the company did not achieve overall guidance for gold output.  The company expects to produce 80,000 to 85,000 ounces of gold in 2014 at a cash cost of $800 to $900 per ounce.

Select Canadian Small/Micro-cap Advancers (as of 4:00 PM Eastern)
Bear Lake Gold Ltd. (V.BLG, Stock Forum) 100.00%
Baja Mining Corp. (T.BAJ, Stock Forum) 66.67%
Horizons BetaPro NYMEX Natural Gas Bull Plus ETF (T.HNU, Stock Forum) 15.58%
FLYHT Aerospace Solutions Ltd. (V.FLY, Stock Forum) 14.61%
Accord Financial Corp. (T.ACD, Stock Forum) 12.92%
Select Canadian Small/Micro-cap Decliners (as of 4:00 PM Eastern)
Sarama Resources Ltd. (V.SWA, Stock Forum) -25.00%
Carpathian Gold Inc. (T.CPN, Stock Forum) -22.22%
Excelsior Mining Corp. (V.MIN, Stock Forum) -13.04%
Wellgreen Platinum Ltd. (V.WG, Stock Forum) -11.00%
Wellgreen Platinum Ltd. (T.WG, Stock Forum) -11.00%

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The symbol V.PIE in the subject line is wrong for Baja Minerals.
1.5 stars
January 24, 2014
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