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PROACTIVE CANADIAN NEWS SUMMARY: RIM, Rona, Vecima, Nevsun Resources, Treasury Metals, Perseus, Great Western Minerals, Graphite One, Global Minerals and more

PROACTIVE CANADIAN NEWS SUMMARY: RIM, Rona, Vecima, Nevsun Resources, Treasury Metals, Perseus, Great Western Minerals, Graphite One, Global Minerals and more

Toronto's main market ended higher Monday, as Research In Motion (TSE:RIM) (NASDAQ:RIMM) rose more than 10%, lifting the info tech sector. U.S. markets were closed for Martin Luther King, Jr. Day.

The company is just days away from the launch of the BlackBerry 10 operating system, on which many analysts have taken a bullish stance. 

According to a Reuters report, RIM CEO Thorsten Heins said the company was open to “strategic alliances” once it launches the Blackberry 10 later this month and that a strategic review could lead to the sale of RIM's hardware production or licenses to its software.

The stock on Friday jumped up about 7% after a Jefferies & Co. analyst upgraded the stock to a "buy" and raised his price target to US$19.50 from $13. 

In other corporate news, Canadian home improvement retailer Rona (TSE:RON) saw its shares rise over two per cent Monday after announcing sweeping changes to its board as it looks to recover and refocus after a tumultuous year in 2012.

Among the changes is the addition of Robert Chevrier, who joins Rona's board as executive chairman, effective immediately. Chevrier replaces Robert Paré, who steps down as chairman but continues to serve as a board member.

Vecima Networks (TSE:VCM), a manufacturer for broadband cable and wireless network infrastructure, says its board has authorized a special distribution to shareholders of $1.00 per share, following a strategic review of alternatives. 

The distribution, in the form of a return of capital, is subject to shareholders approving a reduction in the stated capital of the common shares.

In metals and mining news, shares in gold companies with mines or projects in Eritrea fell sharply Monday, after reports from international news agencies broke out that more than 100 dissident soldiers with tanks stormed the Ministry of Information in the small East African nation and forced state media to call for political prisoners to be freed. 

Nevsun Resources (TSE:NSU), which operates its Bisha mine in the country, issued a statement that said it has received confirmation that the capital city of Asmara - where the ministry of information building is located - is calm. Its shares still fell more than 8%. 

Junior gold explorer Sunridge Gold (CVE:SGC), which is working to develop its Asmara project in the nation, saw its shares tumble 20% to 23 cents. Sunridge said that information from the company's in-country staff is that Asmara is calm, and "these events have had no effect on Sunridge's ongoing engineering studies and drilling operations in the country."

Elsewhere in the sector, OceanaGold Corp. (TSE:OGC) (ASX:OGC) Monday announced 2012 production and cash costs that it said met its expectations, and said 2013 will see its Didipio project in the Philippines “transition to operations”. For the quarter that ended December 31, 2012, the company reported gold production of 76,844 ounces, resulting in gold production of 232,909 ounces for the year.

Treasury Metals (TSE:TML) provided Monday an update on the mine permitting process for its Goliath gold project in Ontario, after last month announcing the Canadian Environmental Assessment Agency (CEAA) accepted its project description. Today, the company said in a statement that the CEAA concluded to have the Goliath project subject to an environmental assessment. It has also received the notice of draft environmental impact assessment (EIS) guidelines. 

Perseus Mining (TSE:PRU) (ASX:PRU) saw its shares fall over 6% Monday, after it reported second quarter production that came in well below its already revised guidance.

Citing mechanical challenges that held back production growth at its Edikan gold mine in Ghana, the company posted gold production of 51,090 ounces, below its guidance of 58,500 to 61,750 ounces, which was revised down from 65,000 to 70,000 ounces in late November.

In energy news, Lundin Petroleum (TSE:LUP)(OMX:LUPE) warned Monday that its fourth quarter profit will be impacted by certain exploration costs and asset impairment charges. 

Turning to the junior resource sector, Montero Mining and Exploration (CVE:MON) has raised a total of $1.4 million in new funds through a non-brokered private placement financing that it says was oversubscribed by 40%

The rare earths explorer said late Friday afternoon that it successfully sold 11.2 million units at a price of 12.5 cents each. The company announced the offering in mid-December, with initial plans to raise up to $1 million. 

Shares of Great Western Minerals Group (CVE:GWG) jumped over 20% Monday after the rare earths processor released an updated NI 43-101 compliant resource estimate at its past-producing Steenkampskraal property in South Africa, as the company works to become a fully integrated rare earths producer. 

The latest document, prepared by Snowden Mining Industry Consultants, shows a mineral resource of 32,000 metric tonnes of total rare earth oxides plus yttrium oxide (TREO) under the indicated category, and another 42,100 metric tonnes under the inferred category. Both categories used a 1% TREO cut-off grade. 

This means indicated resources rose by more than double from the resource estimate last May, while inferred resources more than tripled. 

Shares of Graphite One Resources (CVE:GPH) (GPHOF:OTCQX) rose over 3% Monday, after the company announced that it filed its technical report for its maiden inferred resource at the Graphite Creek property in Alaska and said it believes the deposit to be the largest of its kind in the world.

The NI 43-101 maiden inferred resource at Graphite Creek, which the company unveiled early last month, is estimated at 164.5 million tonnes at 4.61 per cent graphite, while the deposit has potential resources of 235 to 492 million tonnes of 4.2 to 7.9 per cent graphite.

Global Minerals (CVE:CTG) has unveiled initial drill results from an underground drill program at its Strieborná silver project in Slovakia, calling them positive, with an updated resource estimate planned for the third quarter. 

Highlights from the results released Sunday include 297 grams per tonne (g/t) silver over 7.1 metres, and 156 g/t silver over 7.5 metres. The updated resource estimate due out later this year will be included into engineering and economic studies, being carried out by AGP Mining Consultants. 

On the CNSX, real estate social network RESAAS Services (CNSX:RSS) has seen a large jump in its share price in the past week as investors gear up for growth in 2013.

The social network for real estate professionals, mortgage specialists, home buyers and sellers is designed to enable real-time updating of property listings as well as the ability to sync with social media sites such as Facebook (NASDAQ:FB) and Twitter.

Shares shot up over 16 per cent on January 18 alone, just two days after the company announced a new deal with Southern California real estate firm Star Real Estate South County to join its platform.

Northern Vertex Mining (CVE:NEE) provided Monday an update on its project development plans for its Moss gold-silver property in Arizona, with a preliminary economic assessment (PEA) expected this quarter. With regards to the PEA, CDM Smith Engineering of Arizona is on target to complete the report by the end of March.

Pending the outcome of the report, the company will initiate a feasibility study focusing on phase II, with a target production rate for this phase of 5,000 tonnes per day. 

Largo Resources (CVE:LGO) shares jumped as much as 15% Monday, lately higher by 7.32%, after reporting results from its preliminary economic assessment (PEA) for an expanded production scenario at its Maracas vanadium project in Brazil just before the weekend. 

The report, prepared by RungePincockMinarco, was commissioned to re-scope the project by incorporating a new production stream of both vanadium pentoxide and ferrovanadium, as opposed to just a ferrovanadium scenario. 

Toronto-based Sierra Metals (CVE:SMT) Monday saw its shares slide more than 3%, despite forecasting mostly growth in production for 2013.

In analyst notes, Casimir Capital says that it expects minimal impact to Antrim Energy's (TSE:AEN) 2013 cash flows, following a brief shut-in period last week at its Causeway field in the North Sea, UK. The firm kept its $1.15 price target on Antrim, and speculative buy rating.

The oil and gas producer said Friday that oil production resumed at its Causeway field, which flows through the Brent pipeline via the Cormorant Alpha platform. 

Morocco focussed explorer Longreach Oil & Gas (CVE:LOI) provides investors with attractive pure-play leverage to very large potential resources, according to Canadian stockbroker Cormark Securities. In the note Cormark begins its coverage on the junior oil explorer with a C$1.50 target price – almost 130% higher than the current price of 66 cents. 

Casimir Capital analyst Eric Winmill trimmed his price target and rating on Scorpio Mining (TSE:SPM) Monday after the miner released lower-than-expected fourth quarter production results from its Nuestra Senora operation in Mexico.

Tonnes milled in the fourth quarter were up 2% quarter-on-quarter to 129,000 tonnes, just ahead of Casimir's forecast of 128,300 tonnes, but silver grades were below the brokerage's estimate of 95 g/t and lower than the company's forecast of around 100 g/t. 

Winmill slashed his price target to $1.60 a share, down from $1.70 a share previously, with his rating downgraded to a buy from strong buy. 

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Canadian Market Wrap Timeline

October 16 2015

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