Gold Junior Surges on Newmont Mining Investment

Continental Gold Inc. (TSE:CNL), a gold junior, glistered after announcing that Newmont Mining (NYSE:NEM) has agreed to invest US$109 million into the Company

Sean Mason | May 11, 2017 | SmallCapPower

More than a few speculators took a shine to a gold junior Thursday following a large investment from Newmont Mining. Here’s some small stocks making big moves on Thursday, May 11, 2017 (as of 4 pm EST):

Continental Gold Inc. (TSX: CNL) shares jumped 33% to $3.64 on Thursday after the gold junior announced that Newmont Mining has agreed to purchase 37.38 million common shares of the Company at a price of C$4.00 per share for a total investment of US$109 million in a non-brokered private placement, the result of which being that Newmont will own approximately 19.9% of the issued and outstanding common shares of Continental on a non-diluted basis.

Win Big With Our Small Cap Picks


As well, shares of Aimia Inc. (TSX: AIM) plummeted 63% to $3.33 as the data-driven marketing and loyalty analytics company said it believes that Air Canada does not currently intend to renew the Aeroplan partnership expiring in June 2020, and the Company is exploring post-2020 alternatives.

Merus Labs International Inc. (TSX: MSL), meanwhile, reported that it has agreed to be acquired by Norgine B.V. for $1.65 per share in cash, including the assumption of all debt obligations, for a total enterprise value of approximately $342 million. Merus Labs International stock popped 60% to $1.62 following the announcement.

Finally, TomaGold Corporation (TSXV: LOT) shares climbed 13% to $0.09 after the gold explorer announced that IAMGOLD Corporation provided an update on the ongoing exploration program at its Monster Lake joint venture project in Quebec, as well as assay results from the first 11 drill holes, which included 3.1 metres grading 121.67 g/t gold.

See more Small and Micro Cap Market Movers Daily from Sean Mason. Tomorrow’s big stock market winners could be found here today!

Hi, did you know SmallCapPower accepts blog submissions? You can contact me here

Disclosure: Neither the author nor any of the principals at Small Cap Power, or their family members, own shares in any of the companies mentioned above.

The Content contained on this page (including any facts, views, opinions, recommendations, description of, or references to, products or securities) made available by SmallCapPower/Ubika Research is for information purposes only and is not tailored to the needs or circumstances of any particular person. Any mention of a particular security is merely a general discussion of the merits and risks associated there with and is not to be used or construed as an offer to sell, a solicitation of an offer to buy, or an endorsement, recommendation, or sponsorship of any entity or security by SmallCapPower/Ubika Research. To read more of this Disclaimer please click on the button below: