Gold Junior Surges on Newmont Mining Investment

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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.

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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.

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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.

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