News Releases From NEX Companies For October 2nd

There was one news release from a NEX company that was picked up by Marketwire on Tuesday, released before the opening of trading, as well as a confirmatory release from a company invoved in a reverse takeover with a NEX company. The first release was from Rocher Deboule Minerals Corp. [NEX: RD.H], and it details Rocher's acquisition of a second niobium property, right next to the one it acquired on Sept. 10th - the Brent claims. This latest acquisition is the Lonnie Carbonatite claims, which has encouraging historical results but no present-day results. According to the press release announcing the purchase of the Lonnie claims, both properties "[cover] all known niobium mineralization in the area." It also discloses that the price paid by Rocher is $10,000 and 100,000 shares of RD.H, subject to regulatory approval. Rocher closed on Tuesday at 45 cents/share, down 2 cents/share since Monday's close.

The Marketwire-disseminated release that mentions a NEX company is from Transeuro Energy, and it concerns the reverse takeover by/of Surge Resources Inc. [NEX: SRH.H] which Surge itself reported on Monday. The Transeuro news release mentions that Surge will be moving to Tier 2 of the TSX Venture soon; that Transeuro now has the pre-emptive right to acquire 50% of any subsequent share issue over the next two years; and, that new Surge CEO Hal Hemmerlich is Transeuro's current CEO and President. Also released, through Canjex Publishing, was a SEDAR-filed document, an Early Warning Report [PDF file], which announces Transeuro's acquisition of "30,000,000 common shares in the capital of the Company, representing approximately 53% of the issued and outstanding share capital of the Company." SRH.H closed on Tuesday at $1.45/share, unchanged since Monday's close.

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

There was one release from a NEX company that was sent out exclusively through Canjex on Tuesday. Avigo Resources Corp. [NEX: TMX.H] has announced the appointment of Pierre Besuchet as the new President and as a director, and Debbie Lew as the new CFO of the company. Previously, Ross Wilmont had held both positions, but he has resigned. It also says that Mr. Besuchet is an investment banker from Geneva. TMX.H closed at 40 cents/share on Tuesday, up 1 cent/share from Monday's close.


To read about the highlighted NEX stocks for Tuesday, you can go here.

Highlighted NEX Stocks For October 2nd

Thirty-five NEX stocks traded on Tuesday. Of these, 10 advanced, 10 declined and 15 remained unchanged. There were 108 trades. The top trader in terms of raw volume was Toba Industries Ltd. [NEX: TBG.H], with 212,000 shares traded Tuesday. TBG.H closed at 12 cents/share, up 2 cents/share since Monday's close. Relative newcomer Biomerge Industries Ltd. was the runner-up, with 126,000 shares traded. BIL.H closed down 0.5 cents/share at 1.5 cents/share, despite the fact that only a single board-lot trade put it at 1.5 cents/share: the other 125,000 shares went for 2 cents each. According to the TSX Venture closing summary, Toba was also the top trader for Tuesday in terms of value. It placed eighth on the top-ten list of volume traded divided by total shares outstanding, found below; Biomerge didn't place at all.

Only one NEX stock traded more than ten times [Tuesday], but it wasn't the issue that's been in this category most frequently in the last seven trading days. SMC Ventures Inc. [NEX: SMV.H] traded 13 times on Tuesday; twelve of them were for board lots, of four and five-figure volumes. There seemed to be a block of 25,000 shares, comprising 5 trades that all went for 17.5 cents/share, between 11:03 and 11:33 AM ET. Despite the 0.5-cent sag caused by these trades, the stock managed to make it back to its opening board-lot price of 18 cents/share and even climb above it on the last two (distinct) trades. SMV.H closed at 19 cents/share, up 4.5 cents/share since Monday's close, on volume of 98,100 shares.

The top percentage gainer in Tuesday's trading was that same SMC Ventures [NEX: SMV.H], which gained 31.03% on the day. SMC placed second on the top-ten daily-turnover list, found just below.

The top percentage decliner for Tuesday was the top percentage gainer for Monday's trading: the above-mentioned Biomerge Industries, which traded three times on Tuesday. The above-noted 125,000 shares traded in Biomerge had the same financial institutions on both the buy sides and sell sides, even though they went in two different trades; it was the last trade of 1,000 shares that pushed the price down 25%, enough to make it the top decliner for Tuesday.

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. Magnate Ventures Inc. [NEX: MGV.H], closed at 24.5 cents for a gain of 2.5 cents - 2.06% of total shares outstanding;
2. SMC Ventures Inc. [NEX: SMV.H], closed at 19 cents for a gain of 4.5 cents - 1.78% of TSO;
3. MP Western Properties Inc. [NEX: MPW.H], closed at 4 cents for a gain of 0.5 cents - 1.56% of TSO;
4. Galleria Opportunities Inc. [NEX: GOI.H], closed at 21 cents for a gain of 1 cent - 1.14% of TSO;
5. Avigo Resources Corp. [NEX: TMX.H], closed at 40 cents for a gain of 1 cent - 0.600% of TSO;
6. Arcland Resources Inc. [NEX: ADR.H], closed at 23 cents for a gain of 1 cent - 0.531% of TSO;
7. International CHS Resource Corporation [NEX: ICJ.H], closed at 3.5 cents unchanged - 0.447% of TSO;
8. Toba Industries Ltd. [NEX: TBG.H], closed at 12 cents for a gain of 2 cents - 0.387% of TSO;
9. Focus Ventures Ltd. [NEX: FCV.H], closed at 36 cents for a loss of 0.5 cents - 0.308% of TSO;
10. Greenshield Explorations Limited [NEX: GRX.H], closed at 30 cents unchanged - 0.308% of TSO, though slightly less than Focus'.

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

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NEX Report for October 1, 2007

[Correction Notice: Due to an input error, this article and the BBCI values for mid- and late afternoon had to be revised substantially. Apologies to anyone who was misled.]



On Monday, the Barrel's Bottom Composite Index for the NEX closed at 87.19, up 0.65 points or 0.415%, from Friday's close at 86.83. The BBCI started off on a downturn, thanks to opening declines for Devin Energy Corporation [NEX: DVC.H], which traded a single board lot at market's open for $1.30/share for a loss of 5 cents/share since Friday's close. Also opening lower was Allied Pacific Properties and Hotels Ltd. [NEX: PPH.H], which started off at 3.5 cents/share, down 1.5 cents/share since its previous close, on its first and last trade of the day. Other decliners in the first half-hour of trading, such as Silvio Ventures Inc. [NEX: SIV.H] and Magnate Ventures [NEX: MGV.H], pushed the BBCI down below 86.4 by 10 AM ET, and well below that level shortly afterwards.

Then, the index picked up thanks to the above-mentioned Devin Energy, which went from $1.30/share to $1.50/share as of about 10:20 AM ET. A half-cent rise in newly-NEX-listed Biomerge Industries Ltd. [NEX: BIL.H] pushed the index up above 86.8 just before 10:50 AM ET. The BBCI was close to cracking 87 when, as of about 11:37 AM ET, ITI World Investment Group Inc. class 'A' [NEX: IWI.H] took a tumble from 50 cents/share to 45 cents/share. This drop took the BBCI down more than a tenth of a point.

Except for brief upturns (and one brief downturn) which didn't last long, the index stayed at about the 86.8 to 86.83 level until about 1:55 PM ET, when it broke through 87. Helping it up to that level was a 3 cent/share rise in Moneta Resources Inc. [NEX: MOT.H]

After a slight dip, the BBCI continued rising between 2 and 3 PM ET, reaching close to 87.2 just before the latter hour. A 1.5 cent/share gain in Monster Uranium [NEX: MU.H] from its previous trade, and a recovery in Mazarin Inc. [NEX: MAZ.H] from a 0.5 cent/share loss to unchanged, provided the push to the BBCI at that time.

In the last hour of trading, despite a brief but definite burst through of the 87.2 level, the BBCI drifted downwards somewhat. An 8.5 cent/share gain in Tri-River Ventures Inc. [NEX: TVR.H] at about 3:48 PM ET turned into a 3.5 cent/share gain one minute later. Also pushing the BBCI back down was a 0.5 cent/share loss in Global Tree Technologies [NEX: GTT.H], on a trade of 112,000 shares within two minutes of the close; it put the BBCI at its closing value of 87.19*.

Here are the hourly values for the Barrel's Bottom Composite Index, rounded to the nearest hundredth of a point:

• 10 AM ET: 86.40
• 11 AM ET: 86.82
• 12 PM ET: 86.80
• 1 PM ET: 86.81
• 2 PM ET: 87.06
• 3 PM ET: 87.19
• 4 PM ET/Close: 87.19 (slightly lower than 3 PM's value.)

This is the first part of the daily NEX report. The second part covers NEX stocks that have sent out news releases during October 1st and the third part covers NEX stocks of note for that day.

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

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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.

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