News Releases From NEX Companies For October 1st

There was one news release from a NEX company that was picked up by Marketwire on Monday, which was released after the close of trading. Surge Resources Inc. [NEX: SRH.H] has completed its acquisition, from Transeuro Energy Corp., of a 100% interest in four "petroleum prospecting licenses," covering an area of 5,841,196 gross acres (4,526,927 net,) which have been granted by the government of Papua New Guinea subject to a 22.5% option held by that government. Transeuro also reserves the right to a 10% working interest in the project by paying 10% of the back and future exploration-and-development costs of the property. In exchange for the licenses, Transeuro got 30,000,000 common shares of Surge at an indicated price of 85 cents/share.

The same price is the implied price for a private placement of 12,000,000 Subscription Receipts, making for total proceeds of $10,200,000 which Surge now has access to. According to the same news release, the "net proceeds of the Financing will be used to fund the advancement of the assets to be acquired pursuant to the Transaction and for general working capital purposes." Also mentioned in the release is the appointment of Hal Hemmerich as CEO and a member of the Board of Directors, and Arlene Weatherdon as Surge's new CFO (but not as a director.) A former officer of the company, Ray Antony, will continue to sit on the board even though he has resigned his officer's position. Surge closed Monday at $1.45/share, unchanged since Friday's close.

No NEX companies were mentioned in Monday's TSX Venture Daily Bulletins.

There were three releases from NEX companies that were sent out exclusively through Canjex Publishing on Monday. The first, from Arcland Resources Inc. [NEX: ADR.H], announces the closing of a private placement of 3.2 million shares, at an implied price of 10.5 cents/share, for a total value of $336,000. According to the release, the proceeeds "will be used for working capital." The rest of the release announces the granting, subject to regulatory approval, of 430,000 incentive stock options to certain officers and directors with strike price of 25 cents/share and life of five years. Arcland closed on Monday at 22 cents/share, unchanged from the previous close established last Thursday.

The second release through Canjex is from DVD Investments Ltd [NEX: DVD.H], and it contains a correction to its earlier release announcing the closing of a reverse takeover of/by Mooncor Energy Inc. as well as a formal announcement that the deal has in fact closed. So will the private placement of $4,057,801, if the latter is approved by the TSX Venture exchange. The correction pertains to the interest rate on the convertible debentures: instead of an 8% rate, the debentures will carry a 10% rate. The release also states that "In connection with the financing and subject to final approval of the TSX Venture Exchange, DVD expects to pay FCCM [First Canadian Capital Management], which raised $3,812,000 of the gross proceeds, a finder's fee of $305,910 and to issue them 328,850 broker warrants. Each broker warrant entitles the holder to one unit. Each unit will consist of one common share in the capital of DVD and one-half of one purchase warrant. Each whole warrant shall entitle the holder to purchase one additional common share at a price of 83 cents per share for a period of 18 months from the closing of the financing." The CFO of FCCM, Nick Tsimidis, will continue to be a director of DVD, whose shares are still halted from trading.

The third release is from Toba Industries [NEX: TBG.H], which announces the filing of a change-of-business and reverse-takeover application to the TSX Venture in relation to the recent reverse takeover of/by Peking Marvel Cleansing Supplies Co. Ltd. Toba closed Monday at 10 cents/share, down 0.5 cents/share since last Friday's close.

In addition to these releases, two filing announcements have been sent out:

• an M D & A for the year ending May 31st from Radiant Resources; and,
• the quarterly interim (unaudited) financial statements and accompanying M D & A from Cadre Resources.

There's also the highlighted NEX stocks for Monday, which can be found by going here.

Cadre Resources Files Interim, Unaudited Statement With SEDAR

The financial statements of Cadre Resources Ltd. [NEX: CSL.H] for the third quarter of this fiscal year, ending July 31st, have been filed [PDF file], as well as an accompanying Management Discussion and Analysis (M D & A.) The balance sheet shows cash in the amount of $34,830, up from $2,631 as of the same time last year, even though there is a working capital deficit of $704,736, down from a deficit of $666,682 in the same period of last year. A $74,095 increase in accounts payable explains the increase. $376,719 of the $706,060 in accounts payable, up from $277,558 as of the same period last year, are owed to "former directors and companies controlled by directors of the Company."

Book value is negative: specifically, -2.36 cent/share, down from -2.21 cents/share as of the end of the third quarter of 2006. Cadre had no revenue to speak of, at least since the first quarter of 2006, and its quarterly loss for the third quarter of this year widened, even though the loss for the first nine months of this year shrunk somewhat as compared with the first three quarters of last year. The only two expense items that have grown in the 9-month period of this fiscal year were "Office and miscellaneous" and "Shareholder costs and listing fees;" all others have shrunk. The cash increased not only due to $10,000 in share subscriptions, but also because of a $8,760 gain in "Mineral concession expenditures" and a $1,533 gain in "Fixed assets" for a total gain in cash of $10,293 in the "Investment Activities" part of the cash-flow statement. This is unusual, not only for Cadre but in general; normally, investments activities sop up cash. Cadre is also in the middle of a private placement, from which $138,500 has been advanced subsequent to July 31.

According to the M D & A [PDF file], Cadre is primarily in the aggregate business, although the property it's exploring in the Bolivar States in Venezuela does hold potential for "sand & gravel bearing gold, diamonds, and titanium." The company's in the middle of a Feasibility Study of the property it has the right to explore. The M D & A further says, "[The Venezuelan a]uthorities have described the proposed project as a `Project of National Interest', friendly and `precedent setting'. [It also says that the plan has been presented to high-level Venezuelan officials, including Presiden Chavez himself, and they're smiling on it.] Such statements are reassuring and indicate full and final permitting will be forthcoming. Additional funding is required to complete the final stages of the BFS [Bankable Feasibility Study]." The BFS has not been initiated yet.

Cadre Resources didn't trade on Monday. Its last close was on September 12th, at 5 cent/share. Its 52-week low is 4.5 cents/share; its 52-week high, established on October 4th, 2006, is 12 cents/share. The stock trades infrequently.

Radiant Resources Files M D & A With SEDAR

Radiant Resources, currently halted on the NEX, has filed a Management Discussion and Analysis (M D & A) for the fiscal year ending on May 31st of this year. Only four pages long [PDF file], its first item after the prefatory material is a discussion of a proposed reverse takeover of private company Alliance Pacific Resources Inc. in an arms'-length reverse takeover. Alliance has, according to the M D & A, a 51% interest in a joint venture that holds "within the cooperation area [located in the western Altay Shan Mountain range of Xinjiang Province, China] 12 exploration permits that cover five main exploration properties. There are many world-class precious and base metal deposits along the favourable geologic strata that runs through the Xinjiang province and extends into Kazakhstan and Mongolia." No information on specific finds is given in the description, though. The TSX has given conditional approval of this reverse takeover, subject to shareholder approval, "finalization of a filing statement" and other conditions not specified in the M D & A.

The loss for the year went down to $30,206, from $37,272 in the year ended May 31, 2006, mainly due to a drop in listing and filing fees. Audit and accounting fees, as well as shareholder relations spending, both went up. The amount of working capital declined slightly, from $345,685 to $344,279. Related-party transactions were relatively negligible.

Highlighted NEX Stocks For October 1st

Thirty-four NEX stocks traded on Monday. Of these, 10 advanced, 9 declined and 15 remained unchanged. There were 118 trades. The top trader in terms of raw volume was International CHS Resource Corporation [NEX: ICJ.H], with 207,000 shares traded Monday, in eight trades all made within twenty-two minutes of each other in the last hour of trading. The sell-side financial instiution for all except one, of 32,000 shares at about 3:41 PM ET, was Desjardins Financial. It's possible that the remaining 175,000 shares were a sold block, but (as is the case with the sketchy exchange data) it's impossible to tell for sure. ICJ.H closed at 3.5 cents/share, unchanged since the previous day's close as set on September 11th. Despite the unusually large volume on Monday, the price hardly dipped: only three of its eight trades were below the close, at 3 cents/share, and those were the second to fourth. The price rebounded back for the fifth to eighth trades.

The TSX Venture closing summary named Monster Uranium Corp. [NEX: MU.H] as the top trader in terms of value for Monday. MU.H was one of the ten decliners, closing at 50 cents/share for a drop of 2 cents/share on the day; it traded seven times. 50 cents/share was actually the high of the day: the first, as well as the last two, were made at that price. Two of the middle three trades went at the same time, and the last of those three went a little more than sixteen minutes afterwards; all had Anonymous as the sell-side financial institution, suggesting a sold block that sagged the price a bit. Interestingly, the last two trades had the same financial institution on the sell side - RBC - but the price did not sag; instead, it returned to the day's opening price for the stock. International CHS placed first on the top-ten list of volume traded divided by total shares outstanding, found below; Monster placed ninth.

Only one NEX stock traded more than ten times Monday, and its name is a familiar one in this spot. Only eight of Monday's 23 trades in Silvio Ventures [NEX: SIV.H] were of board-lot size or greater; once again, PI Securities was the buy-side financial institution for all of the odd-lotters. The ones bought through PI, except for the first three, were for 47 cents/share; those first three were for 44.5 cents/share. The first two board-lotters went for 46.5 cents/share; these went through Canaccord on the buy side. The others went for 50 cents/share, and were bought through Haywood. SIV.H closed at 50 cents/share, unchanged from Friday's close, on volume of 8,144 shares.

The top percentage gainer in Monday's trading was Biomerge Industries Ltd. [NEX: BIL.H], which closed at 2 cents/share for a gain of 0.5 cents/share, or 33.33%, on the day. Seven trades, all but one made in the afternoon (Eastern time), pushed Biomerge to the top of this category; all of them were at the same 2-cent price. This upsurge brought BIL.H back to its indicated price at the start of its NEX listing. The volume for the day was 125,000 shares, and all of them were sold through E-Trade.

The top percentage decliner for Monday was infrequent trader Allied Pacific Properties and Hotels Ltd. [NEX: PPH.H], with a close at 3.5 cents/share for a drop of 1.5 cents/share or 30%. The previous close for PPH.H was on August 27th, and the close before that one was on July 18th. Despite the ostensible precipitousness of the drop, Allied Pacific closed in the middle of its 52-week range: 6.5-to-2 cents/share. One trade, of 10,000 shares, put it in Monday's top decliner category.

Finally, the above-mentioned list of yesterday's top ten traders, as measured by % of total outstanding shares or daily turnover (all prices in per-share terms):

1. International CHS Resource Corporation [NEX: ICJ.H], closed at 3.5 cents unchanged - 1.40% of total shares outstanding;
2. Magnate Ventures Inc. [NEX: MGV.H], closed at 22 cents for a loss of 0.5 cents - 1.39% of TSO;
3. Arcland Resources Inc. [NEX: ADR.H], closed at 22 cents unchanged - 0.378% of TSO;
4. Rose Marie Resources Ltd.[NEX: RSR.H], closed at 11.5 cents unchanged - 0.366% of TSO;
5. eReservation Systems Corp. [NEX: RSS.H] closed at 15 cents for a gain of 3 cents - 0.359% of TSO;
6. Millstreet Industries Inc. [NEX: MLI.H], closed at 10 cents for a gain of 1.5 cents - 0.272% of TSO;
7. Toba Industries Ltd. [NEX: TBG.H], closed at 10 cents for a loss of 0.5 cents - 0.265% of TSO;
8. Gainey Resources Ltd. [NEX: GRD.H], closed at 35 cents for a gain of 2 cents - 0.259% of TSO;
9. Monster Uranium Corp. [NEX: MU.H], closed at 50 cents for a loss of 2 cents - 0.231% of TSO;
10. Global Tree Technologies Inc. [NEX: GTT.H], closed at 1.5 cents for a loss of 0.5 cents - 0.224% of TSO.

NOTE: I am not affiliated with the TSX, nor is this blog. The Barrel's Bottom Composite index is not endorsed by the TSX.

TSX Nex Home Page

Notice about Change in Format

The digest form of these reports is going to be broken up, as follows: The report centering around the Barrel's Bottom Composite index; NEX stocks in the news; and, interesting traders. The last one will be written and posted first, the second will be up secondly, and the first will be written and posted third; it'll also be shifted from the "today" format to the "yesterday" format, as the TSX now updates float data on a same-day basis and I need the extra time to complete it. Conequently, the report featuring the BBCI and the graph of it will be posted overnight.

Also, any report on the release of a financial statement/M D & A will go into an entry of its own.

I'm going to write and post these in reverse-chronological order in order to preserve continuity. If you liked the long digest format, and don't mind a headline and/or link-click interruption, then you'll read essentially what you've read in the past.


In addition, I'm dropping the duplication of the TSX Venture Closing Summary's report in the other Barrel's Bottom Report. Instead, I'm going to be writing an interim version of the first part of the digest featured in this blog, as this entry there explains. It also notes that the version there will be interim, which means that it'll be subject to revision as of about the time I post the full one here.

September 28th NEX

In Friday's NEX trading, the Barrel's Bottom Composite index closed at 86.83, up 2.29 points or 2.71% from the previous day's close of 84.54. Two stocks were largely responsible for this upsurge, most of which took place in the last two hours of trading. ITI World Investment Group Inc. class 'A' [NEX: IWI.H] opened at 40 cents/share right at the start of trading, for an opening gain of 7 cents/share. It stayed at approximately that level until about 2:32 PM ET, when it shot up through 45 cents/share to 50 cents/share, at which it closed. The second stock was Devin Energy Corporation [NEX: DVC.H], which shot up 71 cents/share to close at $1.35/share on its last trade, of 500 shares, of the day and week. Devin didn't start trading until about 2:48 PM ET, and its first trade of 1000 shares was at the same price as its previous close, 60 cents/share. From that point, though, DVC.H went up quickly, although it didn't cross the $1.00/share mark until that last trade. There's more on both stocks below.

Those two were far from the only gainers, even though ITI was the only one as of 10 AM ET. The opening trade in Abitibi Mining Corp., at 15 cents/share, was four cents/share above its previous close, reversing a dip in the stock that only lasted for less than an hour on Thursday. Also opening higher was Consolidated Westview Resource Corp. [NEX: CWS.H], on its only trade of the day, at 34 cents/share for a 6.5 cent/share gain on 2000-share volume between 10:18 and 10:19 AM ET. Both bumped the BBCI up, although Abitibi added more of an upkick than Westview. Golden Hat Resources Inc. [NEX: GHA.H]'s opener between 10:59 and 11:00 AM ET, at 7 cents/share for a gain of 1 cent/share, also added a boost to the index, although GHA.H fell back to 6 cents/share between 1:21 and 1:22 PM ET and only partially recovered at about 2 PM ET to close at 6.5 cents/share for a 0.5 cent/share gain. The BBCI stayed relatively flat until Devin kicked in, with some up-and-down ranging, starting at about 1:11 PM ET.

ITI and Devin weren't the only two gainers pushing the BBCI up in the last hour of trading, though. In its first and only trade of the day, of 10,000 shares between 3:18 and 3:19 PM, Gold Star Resources Corp. [NEX: GXX.H] gained 3 cents/share to open and close at 17 cents/share. There were, of course, some decliners too on Friday, but most had minor drops.

Here are the values (rounded to a hundredth of a point) for the Barrel's Bottom Composite for the NEX, hour by hour:

• 10 AM: 84.71
• 11 AM: 85.19
• 12 PM: 85.18
• 1 PM: 85.22
• 2 PM: 85.24
• 3 PM: 85.68
• 4 PM/Close: 86.82

Thirty-five NEX stocks traded Friday. Of these, 11 advanced, 4 declined and 20 remained unchanged. There were 116 trades. The top trader in terms of raw volume was Thursday's runner-up: Golden Hat Resources Inc. [NEX: GHA.H], with 145,000 shares traded on Friday. The other Barrel's Bottom report and the TSX Venture closing summary both named
Rocher Deboule Minerals Corp. [NEX: RD.H] as the top trader in terms of value, as well as Friday's runner-up in terms of raw volume. RD.H was one of the four decliners, closing at 45 cents/share for a drop of 1 cent/share on the day. Golden Hat placed sixth on the top-ten list of volume traded divided by total shares outstanding, found below; Rocher placed eighth.

There was one news release from a NEX company that was picked up by Marketwire today, although it's one that is seeking an exit from the NEX Board. Isee3d Inc. [NEX: ICT.H] has submitted an application, as of September 19th, to move to the TSX Venture Tier 2, and also plans to raise $1,200,000 through a private placement. (TSX regulations forbid a NEX company from raising more than $500,000 through private placements in a 12-month period, as the release specifies.) So, the closing of this private placement won't happen until/unless approval is granted to move to the Tier 2. The detaisl of the placement are: 4,000,000 units, if fully subscribed, at a price of 30 cents/unit. Each unit contains one common share and a warrant to purchase another at exercise price of 50 cent/share with life of 1 year and hold period of four months of the year once the placement closes. Once the warrants can be bought and sold, Isee3d has the right to cancel the warrants (specifically, redeem them for 1/10 of a cent per warrant) "at any time after the Company's listed common shares have been trading above a daily close of $0.60 for fifteen (15) consecutive trading days." Proceeds will be used "to further develop the Company's technology and proceed with the commercialization of its assets." Some will be used for working capital. ICT.H only traded an odd lot on Friday, of 53 shares at 29 cents/share at about 1:58 PM ET, so its closing price was the same as the previous close, set on Thursday, of 31 cents/share. The release was disseminated after trading closed for the week.

There were six NEX companies mentioned in two bulletins at the bottom of Friday's TSX Venture Daily Bulletins; both are found at the bottom. The first bulletin mentions five NEX stocks that are to be delisted as of the start of Monday's trading for not paying their NEX listing maintenance fee for the quarter. All five are suspended. Battery & Wireless Solutions Inc. [NEX: BWS.H], Canadian Stevia Corporation [NEX: SWT.H], MaxxCapp Corporation [NEX: MXP.H],
MIT Ventures Corp. [NEX: MVC.H] and WorkGroup Designs Ltd. [NEX: WGD.H] are NEX companies no more, as of October 1st.

The other NEX company mentioned in the Bulletins is Rose Marie Resources Ltd. [NEX: RSR.H], which got TSX Venture Exchange permission to lower the exercise price of 3,000,000 warrants, which expire on April 9th of next year, from 13 cents/share to 11 cents/share. They were issued as part of a private placement of 3 million shares early last spring. RSR.H closed at 11.5 cents/share, up 1.5 cents/share from Thursday's close. Canjex Publishing has a webbed copy of the bulletin.

----------

There was a relative flood of news releases from NEX companies that were sent out exclusively through Canjex today; seven sets of them announced the filing of financial statements. The first one, released last night, wasn't a financial-statements filing notice; it was a progress report from DVD Investments Limited [NEX: DVD.H]. It announced that the closing of the Mooncor Energy Ltd. reverse takeover was expected as of Friday, as was the completion of a financing package consisting of "a minimum of $2-million of non-flow-through units at a subscription price of 50 cents per unit and flow-through units at a subscription price of 60 cents per FT unit and a minimum of $2-million of a 30-month convertible subordinated secured debenture." The debenture carries an annual rate of 8% in balloon-payment format, with interest payable either on conversion or at maturity, and is convertible into shares of DVD into units at a price of 50 cents/unit for two years and sixty cents/unit for the last six months of the debenture's life. According to the release, this financing is expencted to increase the float by a minimum of 4 million shares. The entire reverse takeover is expected to leave about 8% of the newly-structured DVD in the hands of current DVD shareholders, about 7% in the hands of the buyers of the units, and about 85% in the hands of Mooncor shareholders. (Hence the name "reverse takeover" that's applied to this kind of financial maneuvering.) DVD.H is currently halted; its last close was at 60 cents/share, made as of November 3rd, 2006. There has been no update to the progess report disseminated as of yet.

As mentioned above, there were seven NEX companies that announced the filing of financial statements over the course of Friday. eTV Technology Inc. has filed thee pairs of financial statements and M D & As, evidently to get up to date on its filings so as to come out of suspension. The periods covered, the quarters ending December 31st, 2006 [financial statements PDF file; M D & A PDF file], March 31, 2007 [financial statements PDF file; M D & A PDF file] and June 30th, 2007 [financial statements PDF file; M D & A PDF file], put eTV up to date in the filing of its interim financial statements. As of the most recent quarter, eTV had no revenue; general and administrative expenses ballooned to $86,397 from $11,198 as of the second quarter of 2006. The M D & A explains the increase as "mainly a result of increased management fees incurred in restructuring the company." The first page states that, as of "June 30, 2007, the Company had not yet achieved profitable operations, has accumulated losses of
$12,242,269 since its inception, has a working capital deficiency of $554,727, and expects to incur further losses in the development of its business, all of which casts substantial doubt about the Company’s ability to continue as a going concern." Book value is below zero: -4.9 cents/share. eTV does, however have accumulated tax losses of $1,771,334, which expire in tranches between 2008 and 2017. These are not vendible.

The first of six regular interim (unaudited) financial statements were filed by a company that was reinstituted for trading at the beginning of this month. BHR Buffalo Head Resources Ltd. [NEX: BHR.H] [PDF file]. As of the most recent quarter, ending July 31st, BHR has $1,835 in cash and a working capital deficiency of $170,495. Book value is -3.93 cents/share, and no revenue has come in: none since, at the latest, the first quarter of 2006. Note 8 discloses that the proceeds from a private placement in the works will be used partially for "the payment of certain debt obligations of approximately $175,000." The planned value of the private placement is $675,000, and it has not received regulatory approval. Evidently, BHR securing the full amount is contingent upon it moving to Tier 2 of the VSE. The M D & A [PDF file] states on its first page that the company is kept afloat through loans from directors. BHR.H didn't trade on Friday; its last close, as of last Tuesday, was at 15 cents/share.

Second on the financials list is Consolidated Global Cable Systems Inc. [NEX: GCS.H], whose financial statements [PDF file] are also unaudited interim ones, for the second quarter of FY 2008. Global Cable is another inactive company, with no revenues since the first quarter of FY 2007 at the latest, a loss of $20,076 for the most recent quarter which ended August 31st for a (stable) loss of 0.412 cents/share, and a book value of -9.62 cents/share. The company is being kept afloat by loans from related parties, which are interest-free and have no specified terms. The accompanying M D & A [PDF file] does mention a $550,000 lawsuit hanging over Global Cable's head, originally filed by Boston Telecommunications Group, Inc. in late 2002 because of a busted partnership agreement. So does note 4 of the financial statement. Global Cable has been named as "a defendant," according to that note. The lawsuit has already been dismissed in regualr court, and is currently under appeal. Global Cable's working capital deficiency is $468,993. GCS.H didn't trade on Friday; its last close, as of Sept. 13th, was at 17 cents/share.

Next was Silvio Ventures Inc. [NEX: SVC.H], one of the most active traders in terms of number of trades this past week. The interim financial statements, for the second quarter of FY 2007 which ended July 31st [PDF file], show cash on hand in the amount of $403,592 and working capital in the amount of $391,037. Book value is positive as well, in the amount of 4.57 cents/share as of 2Q '07; as of 4Q '06, it was negative. The increase was enitely due to an addition in shareholders' equity and a new contributed surplus; no income was recorded for 2Q '07. Losses increased to $53,669 as compared with $5,622 for 2Q '06, as a result of professional fees incurred for a planned reverse takeover of/by Frontenac Ventures Corp.; it was cancelled after the end of 2Q '07, according to the accompanying M D & A [PDF file]. Although the company has cash, it got the cash from a financing. There are no planned capital expenditures as of the time of preparing the M D & A. Silvio closed Friday at 50 cents/share, down 1 cent/share from Thursday's close.

Abitibi Mining Corp. [NEX: ABB.H] has filed a full annual report for fiscal year 2007, ending May 31st of this year, containing financial statements [PDF file] and accompanying M D & A [PDF file]. The financial statements have been audited with an unqualified opinion from the auditors. Abitibi Mining has $74,340 in cash as of May 31st of this year, but has a working capital deficit of $659,113. Almost all of the deficit is due to the current-liability item "Due to Related Parties," in the amount of $737,359, up from $519,244 as of the end of FY 2006. Unlike at the end of FY '06, book value at the end of FY '07 is negative: -1.04 cents/share using the then-current number of total shares outstanding in the report. No revenue was recorded for either FY '07 or FY '06. Net loss for FY '07 would have been less than the one for '06 had it not been for the write-off of $446,115 in mineral properties costs, associated with Abitibi Mining's plan to move to Tier 2 of the Venture Exchange by acquiring properties. The M D & A specifies: "Additions to the deferred expenditures during the year relate to the acquisition of the Legris Lake Property in Ontario and the Chapleau Diamond Project." It also specifies that the lessening of the loss before other items (also in the income statement are losses/gains on marketable securities and a gain from option income on mineral properties, which only appeared in FY '06) is due to "a reduction of $356,600 in stock based compensation as the Company did not grant options in the past year but did in the prior year." Both directors' fees and administrative services have increased, as the company moves towards the Tier 2 and gets more active (the respective reason cited for each increase.) Cash flow was kept mildly negative in FY '07 due to financing activities. Note 1 of the financial statments says that Abitibi Mining needs cash from further financings, intended to be private placements, to keep afloat. It has a portfolio of at least seven claims groups. Only two of them, according to note 4, have had money spent on (as opposed to for) them: the Chapleau Claims and the Legris Lake properties; both had money spent for "Line cutting, survey, geoservices." Only Chapleau Claims has had money entered into the "Exploration administration" account. The Legris Lake property requires Abitibi Mining to spend $750,000 over the next five years to keep its 100% interest, as well as further outlays of cash over the next four years totalling $125,000. Hanging on to interests acquired in four recently-optioned properties is contingent upon Abitibi Mining moving to Tier 2 of the Venture.

Fifthly, Module Resources Incorporated [NEX: MLE.H] has released its interim and unaudited financial statements for the quarter ending July 31st of this year, the third quarter of FY 2007. [PDF file]. Module has $238,714 in cash and cash equivalents on the balance sheets and working capital of $200,477, up from $87,895 as of 3Q '06. Accounts receivables ballooned to $36,777 from a negligible amount, but so did current liabilities due to related parties to $56,403. According to note 4 of the financial statements, there are no interest charges or fixed terms of repayment for those due-to-related party liabilities. Book value is positive, in the amount of 1.71 cents/share using the number of shares issued from Note 3(b). Cash and cash equivalents increased by $65,968 during 3Q '07 because of financing inflow of $158,240 due to shares issued and an increase in related-party loans in the amount of $50,067, making up for the use of $142,339 in that period. 3Q '06 saw the use of $12,516 in cash, partially balanced by an $8,000 advance from related parties. The accompanying M D & A [PDF file] specifies the reason for the increased loss and drain of cash, before related-party financing and issuance of shares: "In both comparative periods the Company incurred higher expenses for exploration, securities and investor relations, legal and audit, and office and administration. The increased expenses reflect increased business activity related to the Company optioning the Carolin property from Century Mining." It also specifies that the $158,240 inflow is the "balance of proceeds from the $400,000 private placement" made in the quarter, and that further financings will be needed to develop the Carolin property. MLE.H didn't trade Friday; it last closed on Thursday at 24.5 cents/share.

Sixthly and finally, the unaudited interim financial statements of Achieva Development Corp. [NEX: AHE.H] [PDF file] and the accompanying M D & A [another PDF file] for the third quarter of this fiscal year have also been filed. Achieva has $170,337 in cash and cash equivalents and working capital of $169,547, according to the M D & A. No income has been earned by Achieva since of the beginning of FY '06, most recently. The loss for the quarter shrunk to $40,847 from $65,876 in 3Q '06 due to a reduction in both professional fees and filing & transfer fees. Cash and cash equivalents decreased $38,883 during this period, almost all as a result of quarterly expenses as listed in what would be the income statement had there been any income. Acheiva is currently in negotiations for a reverse takeover of/by Dominion Metals Corp., as note 5 of the financials explains. Trading in AHE.H is currently halted.

----------

Three NEX stocks traded more than ten times on Friday, and all three of them had exactly the same amount of trades - fifteen each - making for a three-way tie in this category. Silvio Ventures [as noted above, SIV.H] was one of them. Five out of the fifteen trades in SIV.H were baord-lot sized, but all of them had four-figure volumes. Prices for the board lots ranged from 50 to 51 cents/share, and trading in odd lots ranged from 48 cents/share to 44.5 cents/share. The last six odd-lot trades, comprising a total of 894 shares, were all at that 44.5 cents/share price; those trades were the seventh- to the second-last trades of the day. (The last one was for 4,000 shares at a price of 50 cent/share, SIV.H's closing price.) SIV.H traded 86 times this week, with 63 of those trades being odd-lot sized. All 63 had PI Securities as the buy-side financial institution. Friday's volume for SIV.H was 17,106 shares. For the second day in a row, SIV.H got in the bottom spot on the top ten daily-turnover list, found below.

The second trader with 15 trades on Friday was Rocher Deboule Minerals Corp., already noted above as one of Friday's four decliners; RD.H dropped a penny a share to close at 45 cents/share. Had there not been six trades, totalling 59,500 shares, all sold through BMO Nesbitt during the last five minutes of trading, at prices ranging from 42.5 cents/share to 45 cents/share, Rocher wouldn't have been in this list. All of the first 7 trades of the day went for 46 cents/share, and the eighth went for 45 cents/share at about 2:24 PM ET. Trades four through six (in chronological order) had RBC as the sell-side financial institution, with a total of of 10,000 shares between those three which were made between about 1:25 and 2:05 PM ET.

The third and final NEX stock with fifteen trades was ITI World Investment Group Inc. class 'A' [NEX: IWI.H, to remind you], which was discussed above as one of the day's two big leapers. Twelve or fourteen of these fifteen seem to be part of three or four bought blocks: the first three went at two seconds after the opening and had Qtrade as the buy-side financial institution. 27,000 shares were bought through Qtrade at that time, all at a price of 40 cents/share. The second presumed block comprised six trades, all with TD Securities as the buy-side financial institution, which went at times ranging from about 2:28 to 2:36 PM ET and prices ranging from 40 cents/share to 50 cents/share. A total of 17,500 shares of IWI.H were bought through TD at those times. A third presumed block consisted of three trades, the last three of the day, all through Penson. These trades in the third presumed block were made between about 2:42 PM and 3:08 PM ET, and all at a price of 50 cents/share. 3,000 shares were bought through Penson in that time range. (There might have been another bought block through two trades at about 1:21 to 1:22 PM ET, both with Northern Securities as the buy-side financial institution, at 39 cents/share with total volume of 5,500 shares.) All told, the trading in ITI class 'A', which closed at 50 cents/share with a gain of 17 cents/share, presents a pattern of at least a few multi-trade blocks that were part of a buying spree. Note, though, that this conclusion is based upon the sketchy information provided by the trades data, making it the product of educated guesswork. IWI.H placed fourth on the top-ten list by volume as a ratio of TSO or the float, found below.

The top percentage gainer in Friday's trading, by far, was Devin Energy Corporation [NEX: DVC.H], which was the only triple-digit gainer in a trading day this month. Devin closed at $1.35/share for a gain of 74 cents/share, or 121.3%, on the day. Eight trades, totalling 8,500 shares, accounted for it. All of them were bought through E-Trade. Five of the eight trades were for 99 cents/share; the first and second, for 1,000 and 2,000 shares respectively, were for 60 cents/share and 80 cents/share. Devin was pushed above the dollar-a-share point by the eighth and final trade; thanks to that rise, those 500 shares comprised five board lots instead of the single board lot they would have been had DVC.H stayed below a dollar per share. Devin made spot #5 on the top-ten list of traders as measured by daily turnover of the float, found just below.

The top percentage decliner for Friday was X-Tal Minerals Corp. [NEX: XMT.H], with a close at 53 cents/share for a drop of 7 cents/share or 11.68%. X-Tal was the only NEX issue to decline by more than a single-digit percentage that day. One sole trade of 1,000 shares, at about 2:03 PM ET, put XMT.H in this spot, although it did come within a cent of its 52-week low. For perspective's sake, XMT.H's 52-week high is 70 cents/share.

Finally, the above-mentioned list of yesterday's top ten traders, as measured by % of total outstanding shares or daily turnover:

1. Magnate Ventures Inc. [NEX: MGV.H] - 2.47% of total shares outstanding;
2. SMC Ventures Inc. [NEX: SMV.H] - 1.04% of TSO;
3. Rose Marie Resources Ltd. [NEX: RSR.H] - 0.746%;
4. ITI World Investment Group Inc. class 'A' [NEX: IWI.H] - 0.485%;
5. Dorato Resources Inc. [NEX: DRI.H] - 0.432%;
6. Golden Hat Resources Inc. [NEX: GHA.H] - 0.420%;
7. eReservation Systems Corp. [NEX: RSS.H] - 0.359%;
8. Rocher Deboule Minerals Corp. [NEX: RD.H] - 0.356%;
9. Focus Ventures Ltd. [NEX: FCV.H] - 0.208%;
10. Silvio Ventures Inc. [NEX: SIV.H] - 0.200%.

NOTE: I am not affiliated with the TSX, nor is this blog. The Barrel's Bottom Composite index is not endorsed by the TSX.

TSX Nex Home Page

September 27th NEX

In today's NEX trading, the Barrel's Bottom Composite index closed at 84.54, down 1.18 points or 1.38% from the previous day's close of 85.72. The decline started right at the opening of trading, with a 3.5 cent/share drop in Isee3d Inc. [NEX: ICT.H] and a 1 cent/share drop in Champlain Resources Inc. [NEX: CPL.H] being only partially counterbalanced by a 1 cent/share rise in Xgen Ventures Inc. [NEX: XGN.H]. After dropping about 0.07 points right at the opening, the BBC Index stayed even until 10:02 AM ET. A 2 cent/share opening drop in ITI World Investment Group Inc. class 'A'. [NEX: IWI.H] was counteracted by a 2.5 cent/share opening rise in Gainey Resources Ltd. [NEX: GRD.H], helping keep the BBCI roughly steady until about 10:50 AM ET.

At that minute, the decline resumed, as reinforced by drops in four issues as of their first trades of the day. (For one of them, it was the first trade since being transferred to the NEX.) A 2 cent/share drop in Silvio Ventures Inc., a 0.5 cent/share drop in Toba Industries Ltd. [NEX: TBG.H], a 3 cent/share drop in infrequently traded X-Tal Minerals Corp. [NEX: XMT.H], and a mere half-cent/share drop in new NEX issue Biomerge Industries Ltd. [NEX: BIL.H] all contributed to a drop in the BBCI of almost three-tenths of a point. It was actually Biomerge that was responsible for most of the decline at that time, because of the large number of its total shares outstanding: almost 250 million of them.

After shedding more than a tenth of a point in the next minute, BBCI partially reversed its downtrend shortly after 11 AM ET, pushing the BBCI up above 85 1/3. A dip at about 11:30 PM ET reversed itself twenty minutes later, keeping the decline relatively slight until 12 PM ET, when the downturn revived in earnest. A 5 cent/share drop in the first trade of another infrequent trader, Pacific Wildcat Resources Corp. [NEX: PAW.H], pushed the index down more than 0.15 points between noon ET and 12:01 ET.

The drop continued, with only minor reversals, for most of the afternoon. By 2:09 PM, the BBCI dipped below 85; after a recovery to slighly above that level, 85 became a quickly receding ceiling. After a secondary uptrend starting at 3:02 PM ET, which carried the index to a little more than 0.3 points below 85, the BBCI dropped to below 84.5. Another secondary uptrend fizzled, putting the index back below 84.5, but a near-last-minute rise in Rocher Deboule Minerals Corp. [NEX: RD.H] pulled the index up to its closing value of 84.54.

Here are the values (rounded to a hundredth of a point) for the Barrel's Bottom Composite for the NEX, hour by hour:

• 10 AM: 85.64
• 11 AM: 85.23
• 12 PM: 85.36
• 1 PM: 85.08
• 2 PM: 85.08
• 3 PM: 84.60
• 4 PM/Close: 84.54

Thirty-six NEX stocks traded today. Of these, 7 advanced, 14 declined and 15 remained unchanged. There were 134 trades. The top trader in terms of raw volume was the same as yesterday's and that of the day before: Toba Industries Ltd. [NEX: TBG.H], with 298,667 shares traded today. Golden Hat Resources Inc. [NEX: GHA.H] was the runner-up once again in raw-volume terms. The other Barrel's Bottom report and the TSX Venture closing summary both named Toba as today's top trader in terms of value of shares traded as well, as it was yesterday too. Toba placed fourth on the top-ten list of volume traded divided by total shares outstanding, found below; Golden Hat placed sixth.

There was one news release from a NEX company that was picked up by Marketwire today. Rocher Deboule announced that it has applied for drilling permits for its Artillery Peak Manganese Project. If granted by the Bureau of Land Management (Mohave County, Arizona,) the drilling should start in mid-November, according to the release. Historical studies for the Chapin West Showings indicate that there are economic levels of manganese in Artillary Peak, although Rocher has no contemporary studies confirming it as of yet except for surface samples. "The historical resource for the Artillery Mountain manganese deposits is estimated at 175,000,000 tonnes averaging 3.5 - 4% Mn as reported in Manganese Deposits of Western Arizona 1958 Information Circular #7843 by (L.L. Farmham and L.A. Stewart). Approximately half of the deposits are on the Rocher Deboule Minerals Corp. claims." The news release itself has further details. As mentioned above, Rocher closed at 46 cents/share today, down 2 cents/share since yesterday's close. The release was disseminated a few hours before trading opened.

There was one bulletin from a NEX company in today's TSX Venture Daily Bulletins, found at the bottom. It announces a halt in the trading of Emergence Resort Canada Inc. [NEX: ERS.H] pending a news release. Emergence didn't trade at all today, because the halt was issued as of 6:04 AM PT, or 9:04 PM ET; it was in force as of the opening of trading. ERS.H last traded yesterday, closing at 36 cents/share for a gain of 2 cents/share on that day. Canjex Publishing has a webbed copy of the bulletin.

Three news items from NEX companies were sent out exclusively through Canjex today. The first release announced the filing of interim unaudited financial statements [PDF file] from Tapestry Resource Corp. [NEX: TPR.H] for the quarter ending July 31st. Tapestry had no income for this quarter, nor did it for the corresponding quarter last year. Expenses, of which $14,338 were for bank charges and interest, totaled $39,767 for this quarter, up from $34,362 from the same quarter of last year. An increase in the bank charges and interest accounted for all of the rise in expenses; the others stayed the same. Tapestry has $1,102 in cash, not including $3,000 in restricted cash listed on its balance sheet. Book value was -28.5 cents/share this quarter, down from -27.0 cents/share as of the corresponding quarter last year. The corresponding M D & A [another PDF file] discloses that Tapestry has had no revenue since (at least) FY 2005, and currently has a working capital deficiency of $730,673. It also states that "The Company’s continued existence as a going concern is dependent upon the continued support of related parties and its ability to raise adequate long-term financing." Tapestry traded only once today, right at the open, with an odd-lot trade of 100 shares at 52 cents/share. The last board-lot-sized trade was made on September 11th, at the closing price of 55 cents/share.

The second release comes from Golden Hat Resources Inc. [NEX: GHA.H], which was disseminated after the market closed. It announces the completion of a geochemical survey at the Telegraph Creek property. The samples gathered have been sent to the analytical company already contracted to analyze the samples, SGS Minerals Services. Golden Hat closed at 6 cents/share, down 0.5 cents/share as the result of a flurry of trades in the last half-hour of trading. It briefly reached 7 cents/share until a block of 120,000 shares, in three trades with Wolverton as the sell-side finincial institution, were made at 6 cents/share as of about 3:45 PM ET. Those three trades were the last of the day's seven in GHA.H.

The third and final release from Canjex today is another announcement of the filing of interim (unaudited) financial statements, from Tapango Resources Ltd. [NEX: TPA.H]; these were also released after the close of trading. The financials themselves [PDF file] show that Tapango, as of the second quarter of FY '08, despite having no revenue and a loss of $366,421 largely due to $312,000 in "stock-based compensation," is sitting on $491,321 in cash, with only $16,952 in current liabilities. (Total current assets for this most recent quarter are $503,685.) Book value is 0.737 cents/share, up from 0.708 cents/share as of the corresponding quarter last year (2Q FY '07.) Cash flow was $10,080, thanks to the issuance of $68,000 in stock as a result of the exercise of warrants, as explained in the M D & A [PDF file], where the interest income on the cash is also disclosed as part of "Interest and Other Income" ($6 ,743 for the most recent quarter.) Tapango intends to use the cash to acquire a resource property at some future date. The stock closed at 50 cents/share today, unchanged.

Despite two others trading exactly ten times today, there was only one NEX stock that traded more than ten times. Once again, Silvio Ventures Inc. [NEX: SIV.H] had the most numerous trades today, with twenty of them. Seven out of those twenty were board-lot sized; the other thirteen were odd lotters. The board lots went for prices ranging from 51 to 53 cents/share, and the odd lots went for prices ranging from 48 to 50 cents/share. The first odd-lot trades in SIV.H were for that 50 cents/share, and the first board lot went for 53 cents/share; at the end of the day, the last board lot went for 51 cents/share and the last odd lot went for 48 cents/share. The gap between board-lot and odd-lot price seems to be narrowing. SIV.H closed at 51 cents/share, down 2 cents/share from the previous day's close; its daily volume was 12,367 shares.

The top percentage gainer in today's trading was Trilogy Metals Inc. [NEX: TRI.H], which closed at 50 cents/share for a gain of 18.5 cents/share or 58.73%. Trilogy traded eight times today, although seven of the eight were within one minute of each other. The first trade, at about 11:06 AM ET, was for 4,000 shares at 40 cents/share. The other seven went at prices ranging from 42 cents/share to 50 cents/share; three of them went for the highest price. Six of those seven trades, comprising 21,000 shares, had an anonymous institution on the buy side, suggesting a bought block of that size or close to. The other trade, though, an odd-lotter of 400 shares at 47 cent/share, had Wolverton as the sell-side financial institution, and it was the sixth trade of the day. Total daily volume for Trilogy was 25,400 shares. Trilogy made spot #5 on the top-ten list of traders as measured by daily turnover of the float, found just below.

The top percentage decliner for today was Biomerge Industries Ltd. [NEX: BIL.H]. Its first trade since being listed on the NEX dropped the price from the pre-trade value of 2 cents/share to 1.5 cents/share, on volume of 2,000 shares at about 10:50 AM. This one trade, the only in BIL.H today, made for a 0.5 cent decline, or 25%.

Finally, the above-mentioned list of yesterday's top ten traders, as measured by % of total outstanding shares or daily turnover:

1. Rose Marie Resources Ltd. [NEX: RSR.H] - 0.863% of total shares outstanding;
2. Jalna Minerals Ltd. [NEX: JMA.H] - 0.847% of TSO;
3. Gainey Resources Ltd. [NEX: GRD.H] - 0.558%;
4. Toba Industries Ltd. [NEX: TBG.H] - 0.545%;
5. Trilogy Metals Inc. [NEX: TRI.H] - 0.532%;
6. Golden Hat Resources Inc. [NEX: GHA.H] - 0.523%;
7. Arcland Resources Inc. [NEX: ADR.H] - 0.458%;
8. MP Western Properties Inc. [NEX: MPW.H] - 0.415%;
9. X-Tal Minerals Corp. [NEX: XMT.H] - 0.397%;
10. Champlain Resources Inc. [NEX: CPL.H] - 0.370%.

NOTE: I am not affiliated with the TSX, nor is this blog. The Barrel's Bottom Composite index is not endorsed by the TSX.

TSX Nex Home Page