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Alexander Energy (V.ALX) up 18% on acquisition, financing news: Canadian market movers

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

Here are the most active stocks on Wednesday mid-morning on the TSX and TSX Venture Exchange.

On Wednesday, the top TSX mover was Sirocco Mining Inc. (TSX: T.SIM, Stock Forum). The stock was up 5.3% and was trading at $0.40 on volume of 22.6 million.

On December 4, the mineral exploration and development company and Canada Lithium Corp. (TSX: T.CLQ, Stock Forum) jointly announced that they have entered into a definitive agreement pursuant to which they will complete a business combination by way of a statutory plan of arrangement under the Canada Business Corporations Act. Following the completion of the arrangement, the current Canada Lithium shareholders will hold approximately 58% of the combined company, while current shareholders of Sirocco will hold approximately 42%.

The business combination of Sirocco with its established Aguas Blancas iodine mine in Chile and Canada Lithium with its commissioning-stage lithium project in Quebec will create a significant industrial minerals producer in both the iodine and lithium markets. It is anticipated the combined company will provide significant market and growth synergies and over-all cost reduction.

B2Gold Corp. (TSX: T.BTO, Stock Forum) was the second most active stock on the TSX. It slipped 1.4% and was trading at $2.21 on volume of 2.8 million shares.

On December 17, the gold producer announced that Volta Resources Inc. (TSX: T.VTR, Stock Forum) has obtained overwhelming shareholder approval for the previously announced proposed arrangement between B2Gold and Volta. The arrangement required approval by at least 66 2/3% of the votes cast by Volta shareholders present in person or by proxy at a special meeting, and by a majority of the votes cast by Volta Resources' disinterested shareholders present in person or by proxy at the meeting. The approvals were obtained and approximately 99.3% of the votes cast by Volta shareholders were in favour of the special resolution approving the arrangement.

On completion of the arrangement, Volta will become a wholly-owned subsidiary of B2Gold. Under the terms of the arrangement, it is expected that on a fully-diluted in-the-money basis, Volta shareholders will receive as consideration, common shares representing approximately 3.4% of B2Gold's issued and outstanding shares following closing.

Alexander Energy Ltd. (TSX: V.ALX, Stock Forum) was the volume leader on the TSX Venture Exchange. It climbed 18.3% and was trading at $0.71 on volume of 4.6 million.

Today, 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.

The second most active stock on the TSX Venture was Paget Minerals Corp. (TSX: V.PGS, Stock Forum). It rose 50% and was trading at $0.03 after three million shares changed hands.

On December 4, the resource company reported that it had entered into a purchase and sale agreement with Metallis Resources Inc. (TSX: V.MTS, Stock Forum) to sell 100% of the Mt. Dunn property covering 1,822 hectares located in northern British Columbia. Paget will receive $15,000 cash and 200,000 shares of Metallis, subject to TSX-V approval.


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