Gold Junior Shines on Merger Announcement

Luna Gold Corp. (TSX: LGC), a gold junior, climbed after announcing a merger with JDL Gold

Sean Mason | February 2, 2017 | SmallCapPower

Shares of a gold junior ‘trekked’ higher on merger news Thursday. Here’s some small stocks making big moves on Thursday, February 2, 2017 (as of 4 pm EST):

Luna Gold Corp. (TSX: LGC) shares surged 12% to $1.90 on Thursday after the gold junior announced that it intends to merge with JDL Gold Corp. and change its name to Trek Mining Inc. The newly-formed company will have C$66 million in cash and be in a “strong position” to advance the Aurizona gold project to production, according to the Company.

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As well, shares of Western Potash Corp. (TSX: WPX) slid 13% to $0.27 as the company said it is planning a corporate restructuring in which Western Resources Corp. will acquire all of the issued and outstanding common shares of Western Potash on the basis of 0.2 of a Western Resources common share for each Western Potash common share held.

BonTerra Resources Inc. (TSXV: BTR), meanwhile, reported drilling results from the “Rivage Gap Western Extension” of the Gladiator Deposit in Quebec, which included 3.8 metres grading 16.8 g/t gold. BonTerra Resources stock moved up 16% to $0.325 following the announcement.

In addition, shares of Belo Sun Mining Corp. (TSX: BSX) powered 16% higher to $1.03 as the gold project developer said it has received the construction licence for its Volta Grande Gold Project in Brazil, which is the final governmental approval authorizing the Company to proceed with the Project’s construction and development.

Finally, Blackbird Energy Inc. (TSXV: BBI) shares rose 9% to $0.63 after the energy junior announced that it has acquired 8 gross sections of Montney rights (2.8 net) from Paramount Resources in consideration for five million Blackbird common shares. Blackbird added that it has achieved initial Montney production at Elmworth/Pipestone.

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