The Vancouver Business Thread

[LeftCoaster]

Photon Control books record Q1 profit of $894,158 as revenue increases fivefold
By The Canadian Press

BURNABY, B.C. - Photon Control Inc. booked a record first-quarter profit, thanks to a recovery in the semiconductor industry and improved order activity, the photonic sensors developer said Wednesday.

Net income totalled $894,158 in the three months ended March 31, which represents a turnaround from a year-earlier loss of $160,592. The company did not provide per share information.

Burnaby, B.C.,-based Photon (TSXVHO)saw its product sales climb to $3.6 million from $600,000, boosted by record sales to the semiconductor market. It was the company's third consecutive profitable quarter.

The company also attributed the better results to cost cuts and improved operational activities.

Order backlog at the end of March stood at $3.2 million, up from $2.9 million last year.

Photon commercializes and makes opto-electronic products for measurement and control for the semiconductor, oil and gas, power, life sciences and research industries.

Shares of the company rose a penny to six cents on the TSX Venture market.

http://www.canadianbusiness.com/mark...ntent=b3403734

[LeftCoaster]

Belmont Resources finds gold deposits at Ontario property
By The Canadian Press

VANCOUVER - Belmont Resources Inc. (TSXV:BEA), a Vancouver-based junior miner, says it has found gold deposits from the first two holes of a five-hole drilling program on the company's Lumby/Bufo property in northwestern Ontario.

Company shares were halted on the TSX Venture Exchange pending the news.

Belmont said Wednesday it also found some silver, zinc and other metal deposits from its drilling program.

When trading in Belmont resumed on the TSX Venture Exchange, the company's stock gained one cent or 15.4 per cent to 7.5 cents.

http://www.canadianbusiness.com/mark...ntent=b3403574

[LeftCoaster]

Good news for Vancouver based miner Quadra as it essentially doubles in size by purchasing Toronto based FNX Mining.

FNX, Quadra take another step towards merger; shareholders accept proposal
By The Canadian Press

TORONTO - Shareholders have voted overwhelmingly in favour of merging Quadra Mining Ltd. (TSX:QUA) and FNX Mining Company (TSX:FNX).

The vote was about 97 per cent in favour at special meetings held by the two companies.

The combined company will have major copper, nickel and precious metals holdings in Ontario's Sudbury basin as well as mines in the United States and Chile.

The transaction was called a "merger of equals" but is technically a purchase of FNX by Quadra, which will swap 0.87 of a share for each FNX share.

The Quadra shares have fallen substantially since the deal was announced March 23. They were at $11.49 at midday Wednesday, down from $17.38 at the close on March 22.

At the Quadra's current stock price, the offer is worth about $10 a share, down from $15.12. FNX shares traded Wednesday at $10.04, down 11 cents.

http://www.canadianbusiness.com/mark...ntent=b3403899

[LeftCoaster]

Canaccord reports Q4 and full-year fiscal profits up, higher revenue
By The Canadian Press

VANCOUVER - Canaccord Financial Inc. (TSX:CF) ended its 2010 fiscal year back in the black, reversing a deep loss suffered in the previous financial year, and its leaders pledged to continue to keep a lid on expenses in the near term as markets remain "choppy" in the wake of the recession.

The Vancouver-based investment bank, rebranded Canaccord Genuity earlier this month following its acquisition of Genuity Capital Markets, reported Wednesday a profit of $7.5 million or 14 cents per share in the fourth quarter and an annual profit of $38.5 million.

That was a big improvement on the year-earlier comparable periods, when Canaccord's fourth-quarter net income was just $3.6 million or seven cents per diluted share and fiscal 2009 recorded a $47.6-million loss. But it was well below its third-quarter performance, when it earned $15.1 million on $173.2 million in revenue.

"In the near term we expect the markets to remain choppy," president and CEO Paul Reynolds said on a conference call with analysts.

"That presents challenges for the pricing and marketing of equity offerings."

Even so, the company participated in a number of major equity financings during the quarter, leading 35 transactions that raised total proceeds of $854.4 million and participating in a total of 90 around the world that raised proceeds of $3.1 billion for its clients.

Assets under administration rose 41 per cent to $12.9 billion during the quarter, but "at 9.8 per cent for the full year, return on equity fell short of the business cycle target of 20 per cent," Reynolds said.

"But we remain deeply committed to that goal. In fact, many of the strategic acquisitions we completed... are intended to drive the higher rates of return we know are possible across our businesses."

Canaccord's top line also improved year-over-year, with double-digit revenue growth.

It generated $143.1 million in revenue during the three months ended March 31, up 33.8 per cent from $107 million in the fourth quarter of fiscal 2009, which marked a low point for the Canadian stock market.

Canaccord's 2010 annual revenue was up 20.9 per cent from fiscal 2009, rising to $577.5 million from $477.7 million.

The company booked $5 million in charges ($3.5 million net of taxes), related to the acquisition of Genuity Capital Markets, which was announced March 4 and completed April 23.

Excluding this item, the company earned $11.1 million on $143.1 million in revenues during the quarter, up from $3.8 million on $107 million a year earlier.

Reynolds noted that the company expenses rose 32.4 per cent to $132.7 million during the quarter.

"While this increase is in line with the current quarter's revenues, a large portion of it can be attributed to higher incentive compensation," he said.

"I want to assure you that we are actively addressing both operating and compensation costs in Canaccord Genuity and Canaccord Wealth Management."

With the Genuity deal under its belt, Canaccord will continue to look for fitting acquisitions, "especially in the U.K. and the U.S.," Reynolds said.

"As far as expansion beyond that, we're looking at some opportunities in China, we're evaluating them and there will be more to come on that over time."

Shares in Canaccord Genuity were down 33 cents or 3.5 per cent at $9.11 in Wednesday trading on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b3401069

[LeftCoaster]

Goldcorp rejects call to shut down mine amid pressure from native groups
By Kristine Owram, The Canadian Press

TORONTO - Goldcorp Inc. shareholders have soundly rejected a call for the Vancouver miner to shut down a big mine in Central America amid pressure from critics who say the project is making people sick and hurting the environment.

Ninety per cent of shareholders who sent in their votes before Goldcorp's annual meeting in Toronto on Wednesday defeated a resolution that called on the company to better consult native groups near the Marlin mine in western Guatemala, about 300 kilometres northwest of the country's capital city.

The resolution also said the company should shut down its mining operations not approved by local residents.

The Marlin mine began operating in 2005 and has been a bit of a millstone around Goldcorp's neck ever since.

Activist groups have asked Goldcorp to immediately close the mine until the company can hold a legally binding referendum of the area's residents to gauge support.

However, Goldcorp president and CEO Chuck Jeannes said the company met all the legal requirements of the Guatemalan government when it consulted with residents before the mine was built.

"We literally took over a year and held thousands of meetings with individuals," he said.

Jeannes added that it doesn't make sense to shut down the mine and put 2,000 people out of work, and said the consultation process is ultimately the government's responsibility, not the company's.

The protests echo similar complaints against Toronto-based Barrick Gold Corp. (TSX:ABX), the world's biggest gold producer, which operates in many countries and has a big presence in Latin America.

After Barrick's annual meeting last month, representatives for natives in the Huasco Valley in Chile held a protest against the gold giant's development in their communities.

The group alleges that Barrick has wrongfully received approval for its Pascua Lama project from the state without permission from the local community, and that the development has subsequently caused environmental damage. The indigenous community has two lawsuits pending against Barrick in Chile.

At the Goldcorp annual meeting, a group of about 30 activists and representatives from the Central American communities where the company operates assembled outside to protest Marlin and other projects in the region.

Residents said people in their communities are suffering from skin rashes, hair loss and high concentrations of heavy metals in their bodies due to pollution from the mine.

But Jeannes vehemently denied this is connected in any way to Goldcorp's operations.

"We know we're not causing any ill health effects," he said in an interview after the meeting, adding that studies commissioned by the company as well as independent studies prove this.

"It has nothing to do with mining, it has nothing to do with our mine, but it is a circumstance that comes from the lack of development.... That's why I think we can be of net benefit to these places, because we bring those kinds of advancements in infrastructure that can actually help people," he added.

"We are looked at as someone who can fix a lot of things that have been wrong for a long time, and it's a tall order. We try to do the best we can, but not everyone is going to be satisfied with our efforts."

Wednesday's meeting followed on the heels of an independent human rights assessment of Marlin, released Monday, which recommended that Goldcorp cease all exploration and expansion activities at the mine until further consultations are held.

Jeannes said the company is already doing that voluntarily.

"We have not done any expansion or exploration in areas where we're not wanted," he said, adding that the company hasn't pursued "some very interesting exploration projects" in the area at the request of one of the local communities.

Talking to reporters after the meeting, Jeannes said Goldcorp continues to look for acquisition opportunities, and will also consider divesting its non-core assets as it sees fit. The company recently sold the Escobal silver deposit in Guatemala to Tahoe Resources Inc., a private company headed by former Goldcorp CEO Kevin McArthur.

Jeannes also said the company will begin generating positive cash flow by the end of the year and could consider upping its dividend once that happens.

"Things can change very quickly as opportunities present themselves," he said. "We may find a great way to spend that money, but we may also find ourselves in a position where we can be both a growth company and pay a higher dividend, and I think that would be fairly unique in our sector and something worth looking at."

In Central America, Goldcorp also owns the Cerro Blanco property in Guatemala and the San Martin mine in Honduras, which is in the process of shutting down. It also continues to hold a 40 per cent stake in Escobal, and has other mines and projects in Canada, the U.S., Mexico, Argentina and Chile.

Shares in Goldcorp lost $1.98 or 4.3 per cent to $44.11 amid a broader decline in the gold sector Wednesday on the Toronto Stock Exchange.

http://www.canadianbusiness.com/mark...ntent=b3402883

[LeftCoaster]

Teck Resources moves ahead with Red Dog zinc mine after talks with U.S. EPA
By The Canadian Press

VANCOUVER - Teck Resources Ltd. (TSX:TCK.B) has decided to go ahead with development of the Aqqaluk Deposit at its Red Dog zinc mine in Alaska, the world's biggest zinc concentrate mine, after discussions with U.S. Environmental Protection Agency over water permits.

Teck said Thursday it has held discussions with the EPA over the main water discharge permit at the open pit mine and an internal review of Teck's operating plans for the deposit.

"Our discussions with EPA have been constructive, and after carefully considering the environment, our employees and local communities, we are proceeding with Aqqaluk," Mike Agg, senior vice-president for zinc at the company, said in a statement.

"We will continue to maintain a water discharge that is protective of water quality and the environment."

Teck said it has the necessary permits and authorizations in place to develop the Aqqaluk deposit, though an appeal of some conditions of its water discharge permit has been filed by environmental and Aboriginal groups.

Until that is resolved, the company said it plans to continue discharging water at the mine under guidelines from a 2008 agreement it said "correspond to the limits found in the SEIS to be protective of the environment."

The appeal was filed by the same groups which earlier this year challenged a decision by the State of Alaska certifying that the same permit complies with the state's water quality standards.

The villages of Kivalina and Point Hope said in January that the permit granted to Teck Alaska, a subsidiary of Teck, is putting their health at risk because it allows Red Dog to put mining discharges into a stream residents use for drinking water.

Teck is a diversified resource company with major business units focused on copper, metallurgical coal, zinc and energy. It has operations in Canada, the U.S., Peru and Chile.

http://www.canadianbusiness.com/mark...ntent=b3412731

[LeftCoaster]

Silver Wheaton CEO says company does not feel pressure to make acquisitions
By The Canadian Press

VANCOUVER - The chief executive of Silver Wheaton Corp. (TSX:SLW) says he believes the royalty company has such strong growth potential that it won't have to make any acquisitions that aren't favourable to shareholders.

Peter Barnes told investors at the company's annual meeting in Vancouver that he's confident about the future of the company, which owns stakes in silver mines.

In its outlook, Silver Wheaton executives predict that production will nearly double to 40 million ounces of gold per year, within the next several years.

Barnes said that if the company does decide to make any asset purchases, it will be low-cost, high quality assets that operate in an area with very little political risk.

Earlier this month, Silver Wheaton reported that first-quarter earnings nearly tripled to US$44.6 million as increased silver production and stronger prices pushed results higher.

http://www.canadianbusiness.com/mark...ntent=b3416751

[Locked In]

A 'no-news' story about offshore oil development in BC:

Offshore oil development ban to stay in place: Ottawa

‘There’s no changing of rules at this point,’ says Environment Minister Jim Prentice

By Larry Pynn, Vancouver Sun May 21, 2010

VANCOUVER — The moratorium on offshore oil development in B.C. won’t be lifted any time soon, especially in the wake of the environmental disaster unfolding in the Gulf of Mexico, federal Environment Minister Jim Prentice said Friday.

“It’s in place and there’s no changing of rules at this point,” he said in an interview with The Vancouver Sun. “Obviously what’s happening in the Gulf of Mexico has reinforced the desire for all of us to be careful. Nobody wants that to happen in Canada.

“We need to be careful with offshore oil drilling. We’re all appalled by what we’re seeing in the Gulf of Mexico. The true environmental cost is only now becoming apparent that this stuff is starting to wash ashore.”

Prentice says he knows British Columbians are concerned about the potential environmental impact of oil drilling and oil-tanker traffic.

Looking out The Sun’s editorial boardroom at Burrard Inlet and the North Shore mountains, he said: “This is such a beautiful place on the coast. People are passionate about it. That’s why they live here. They love it, and quite rightly are protective of it.”

He said there is no question that the Gulf of Mexico disaster has raised sensitivities, putting oil drilling and transport under greater scrutiny. “Absolutely. It’s drawing a lot of attention to the risks. We can never rest easy, we can never stop. It’s a matter of environmental safety and public safety.”

Prentice stressed that human error, regulatory laxness and technological failure all seem to have played a part in the sinking of the BP-leased Deepwater Horizontal April 20 about 80 kilometres offshore, killing 11 persons and flooding the Gulf with oil.

He argued Canada has a better regulatory system through the National Energy Board, and noted that one of America’s first responses to the Gulf of Mexico oil leak was to announce creation of an independent national regulatory agency not beholden to industry.

Jennifer Lash of the Living Oceans Society said in response that she is encouraged by Prentice’s remarks but urged him to go two steps further and implement a permanent ban on both offshore oil drilling on the west coast and oil tankers on the central and north coast.

“It’s so remote, so fragile and the communities are so dependent on the oceans for subsidence living and commercial activity,” she said from Sointula on Malcolm Island. “We can’t afford to allow oil tankers.”

The B.C. Liberal government has continued to push the issue of offshore oil drilling.

The Ministry of Energy, Mines and Petroleum Resources website states: “It is estimated that approximately 41.8 trillion cubic feet of natural gas and about 9.8 billion barrels of oil exist off B.C.’s coast.

“B.C.’s west coast has considerable potential, and is close to markets. However, since 1972, the federal and provincial moratoriums have prohibited offshore oil and gas development activities from taking place.

“B.C. is the only region in Canada with significant offshore oil and gas potential that is barred from developing this resource.”

Offshore oil development exists on Canada’s east coast and is under review for the Beaufort Sea in the north.

Prentice was also asked about the fate of Enbridge’s proposed Northern Gateway pipeline from Alberta oilsands to Kitimat, which has generated first nations opposition over environmental impacts, including from additional oil tankers plying B.C.’s coastal waters.

“It has to work through the regulatory process,” he noted. “I appreciate it’s coastal B.C., it’s a controversial project. It’s an important project to the country as a whole and it has to be thoroughly considered.”

The former Indian and northern affairs minister added: “I am well aware of how important it is to secure aboriginal involvement in this project and secure their support.”

And while Prentice emphasizes the need for environmental oversight, he has proposed changes to the federal environmental assessment process that critics say will weaken Ottawa’s oversight of developments.

Ecojustice and the Sierra Club charge that the “amendments would ensure that no environmental assessment is undertaken for many categories of projects that are likely to have adverse environmental effects.”

Portions of Bill C-9, legislation implementing the 2010 budget, would scale back the need for federal environmental assessment, including in areas related to public infrastructure.

“We shouldn’t be using precious resources to do environmental assessments when we know from prior experience there is no negative environmental outcome,” Prentice said.

He said the provinces, especially B.C., have complained about the federal environmental process unnecessarily slowing projects with “green tape” and duplicating the provincial process.

The Minister of Environment will play a central role in deciding which projects require a federal environmental review, he said. “Someone has to make the choice. Somebody has to be responsible.

“Do these changes eviscerate environmental protection in Canada? Clearly not.”

[email protected]
© Copyright (c) The Vancouver Sun

Source: Vancouver Sun

[LotusLand]

Thanks for updating us on the goings on. Although there isn't much back and forth discussion in this thread I think I speak for the rest of the forummers when I say Thanks

[jsbertram]

Originally Posted by Locked In

A 'no-news' story about offshore oil development in BC:


Source: Vancouver Sun

Just as its taken over two decades for many people to forget the Exxon Valdez (and there is still oil leached on those beaches), the BP - Deepwater Horizon oil spill in the Gulf of Mexico will take two or three decades to be forgotten.

If the oil spends the summer sloshing around the Gulf of Mexico and starts washing up on Cuba, Venezuela, Belize or Mexico (closing the beaches americans love to vacation on), or it gets through the Florida Keys to Bermuda, and then starts washing up on the East Coast US beaches and Canadian beaches - I doubt another offshore well would be approved anywhere near North America.

With these two examples easily slipped into any conversation about offshore drilling (oil tanker hitting a reef & spilling oil on pristine beaches; deepwater rig exploding & sinking and its failsafe blowout preventer not working as expected) it is unlikely BC will get offshore gas or oil drilling approved in our lifetimes.

[Yume-sama]

I have read recently that there are over 30,000 offshore drills currently operating in the World... so, when 1 of 30,000 fails it's not completely a cause for horrible panic. It seems like it is being particularly mis-managed by both the company, and the US Government playing a hands off role (perhaps thinking they could avoid political blowback by just... doing nothing?), and the rig itself failed mostly due to regulations not being followed... not lack of regulation itself.

It will be politically popular to say "ban them all!" and it will probably happen (well, new ones), despite not being terribly logical.

No question it will be held up by the Green people as a reason why it should be outlawed everywhere... but, they won't want to let you drill on land to make up for it, either.

Of course this is many times more damaging to the entire World than the Alberta oilsands will ever come close to. I'll await that documentary.

[red-paladin]

The problem is, that yes, only a few oil rigs / oil tankers have spectacular failures like this, but these disasters are so large in scope that it means that even 1 out of 30,000 is a big deal.

Just like Chernobyl was only one nuclear reactor to fail out of thousands, the cost of failure is so large that even one is too many. Granted oil spills aren't as bad as a nuclear meltdown disaster, but you get my point.

To say that 'it's nothing to get worked up about, only 0.1% failure rate is great!' means nothing if even one failure can wreak such damage.

[LeftCoaster]

Ski resort operator Intrawest sells Mountain Creek for undisclosed price
By The Canadian Press

VANCOUVER - Intrawest ULC has sold its Mountain Creek Resort in New Jersey for an undisclosed price, the latest in a string of property sales in recent months.

Intrawest spokesman Ian Galbraith says the resort does not fit into the company's long-term strategy to focus on a core set of resort properties and businesses.

The Vancouver-based ski resort operator purchased the resort in Vernon, N.J., about an hour from New York City, in 1998.

Terms of the agreement were not released, but its new owner, Crystal Springs Resort, is creating a "mega-resort" by incorporating all of the real estate and properties at Mountain Creek with its own resort properties in the area.

Intrawest sold a number of properties, mostly in the U.S. and B.C., before parent company Fortress Investment Group LLC renegotiated terms of a loan agreement last month with creditors.

Intrawest's ski resorts had been slated for the auction block back in February, when its flagship resort in Whistler, B.C., was hosting athletes for the 2010 Olympic Games.

Fortress, a U.S. private-equity fund, took on the debt to buy Intrawest in 2006 in a $2.8-billion leveraged buyout during the height of the real estate bubble.

http://www.canadianbusiness.com/mark...ntent=b3491777

[LeftCoaster]

Base metals miners still profitable despite recent drop in prices
By Kristine Owram, The Canadian Press

TORONTO - Base metals prices have taken a big blow from the European debt crisis and fears that China's economy is slowing, but don't expect companies to start curtailing production any time soon.

"We still feel very bullish on the overall prospect for copper prices in the next three to five years just because we don't see supply meeting demand," said Derek White, executive vice-president of corporate development at the newly merged copper miner Quadra FNX Mining Ltd. (TSX:QUX).

"No tightening of credit in China or euro problems, in our view, is going to dent that," White said.

The price of copper fell by almost 25 per cent between early April and mid-May before recovering a small amount of ground in recent days. Prices for other metals, like zinc and nickel, were down comparable amounts.

The drop has been primarily due to jittery investors moving out of commodities into the relative safe haven of U.S. Treasuries and gold. This flight to safety was in response to fears that new austerity measures in some debt-saddled European countries would combine with moves by China to cool its housing market and slow the global economic recovery.

However, the supply and demand fundamentals that drive base metals prices over the longer term remain intact, said Scotiabank commodity analyst Patricia Mohr.

"I think some of the recent concern about a slowdown of growth in China is overblown," Mohr said.

"While I think some slowdown is inevitable from the 11.9 per cent pace of GDP growth in the first quarter of this year, I think they're probably only going to slow down to a range of nine per cent."

Mohr also noted that the drop in base metals prices seen in April and May followed on the heels of a "spectacular run-up."

"So they've moved back down to more reasonable levels — a little bit more in line with actual supply-demand conditions around the world," she said.

Quadra's White said the cost of treating and refining copper hasn't dropped dramatically, another sign that demand is expected to remain relatively healthy.

And he added that a proposed 40 per cent mining tax in Australia and the potential for similar fees in other jurisdictions will only serve to weaken supply, pushing prices higher.

Ray Goldie, base metals mining analyst at Salman Partners, emphasized that 85 per cent of the world's copper mining companies make money when the price is above US$1.50 per pound. On Friday, the July copper contract on the New York Mercantile Exchange closed at $3.10 per pound.

"Above $2 I think almost 100 per cent (of copper miners) make money," Goldie said. "A price over $2 was something that only a few years ago we thought copper would never obtain, so these are still great prices."

However, base metals are one of the most volatile commodities out there, and a small drop in one region's pace of economic growth can have a dramatic impact on demand globally, cautioned Andrew Martyn, president and portfolio manager at Falcon Asset Management.

"One of the highest volatilities in the commodities zone will be the base metals. I think you can say that almost unequivocally," Martyn said.

This is because base metals are used to manufacture discretionary items that are generally associated with good economic times — everything from appliances to vehicles to new houses.

"Minor changes in demand have big changes in business and investor decisions, and when you're building a $50-million plant you're using a lot of metal," Martyn added.

This is why difficulties in one region like Europe can have spinoff effects that span the globe.

"If you trim the growth of the economies of Europe, they will change how much they use of the metals domestically, and more importantly they will change the (capital expenditure) build of China to supply manufactured goods into the European marketplace. So you've got a double-whammy there," he said.

However, Mohr pointed out that China accounted for nearly 40 per cent of global demand for base metals in 2009, while western Europe accounted for only 16 per cent. She said a slowdown in the euro zone will probably only cut one percentage point off global demand growth for copper in 2010, reducing the overall gain to 4.5 per cent.

The price of copper moved as high as $3.61 in early April before tumbling to $2.93 in mid-May. At the depth of the recession, the price of copper fell to the $1.30 range, forcing several companies to temporarily close their mines.

Shares of base metals miners have taken more of a beating than the prices of the metals themselves. Stock in Teck Resources Ltd. (TSX:TCK.B) lost more than 30 per cent between early April and mid-May, while shares in HudBay Minerals Inc. (TSX:HBM) fell 28 per cent from mid-April to mid-May. Both have rebounded somewhat in the past few days.

http://www.canadianbusiness.com/mark...3490340&page=1

[LeftCoaster]

Versatile Systems Q3 revenue falls 10 per cent amid industry uncertainty
By The Canadian Press

VANCOUVER - Versatile Systems Inc. (TSXV:VV) says customer uncertainty amid the consolidation of the U.S. software industry, caused its revenues to slip 10 per cent to US$9.8 million in the third quarter.

The Vancouver-based software and information technology company reported Monday that its net loss increased to US$816,850, or one cents per share, from US$572,955, zero cents per share.

However, its gross profit was US$2.3 million, or 23.5 per cent of sales, compared to $2.32 million, or 21.4 per cent of sales a year ago.

Versatile chairman and CEO John Hardy said that the acquisition of Sun Microsystems by Oracle Corp. (Nasdaq:ORCL), completed during the quarter, had a negative effect on the its pipeline of Versatile's contracts and revenues.

Oracle bought Sun Microsystems for US$7.4 billion in a deal that was completed in January after months of wrangling in Europe over whether the acquisition would violate antitrust laws.

Oracle, which is the world's No. 1 maker of database software for corporate information systems, has been a leading force in a consolidation of the U.S. software industry.

Sun has been an influential albeit relatively small company in the U.S. technology sector, providing servers and software used to run corporate information systems around the world.

Versatile provides business solutions that enable companies to improve sales, marketing and distribution of their products. It also provides implementation, maintenance and security of computer environments

http://www.canadianbusiness.com/mark...ntent=b3511783

[LeftCoaster]

Ram Power enters share swap to acquire Sierra Geothermal for $28.4 million
By The Canadian Press

VANCOUVER - Ram Power Corp. (TSX:RPG) has signed a letter of agreement to acquire Sierra Geothermal Power Corp. (TSXV:SRA) in a share-swap valued at $28.4 million.

The companies announced Monday that the non-binding agreement will allow Ram to buy all outstanding shares of Sierra Geothermal. Sierra's stockholders would receive one Ram share for every 12 common shares tendered.

Based on Ram's closing share price of $2.56 on May 28, Ram's offer has an implied value of 21.3 cents per Sierra share, or an 18 per cent premium on its closing price the same day.

Ram's shares dropped a penny in light trading after a trading halt was lifted.

Ram Power chief executive Hezy Ram said he is pleased with signing the letter of intent.

"This transaction comes as a continuation of our strategy to create a renewable energy company of scale, with the skilled management and capital in place to execute on our projects," he said in a release.

Both companies expect to reach a definitive agreement near the end of June, pending agreeable terms, due diligence and approval from commitments from Sierra's largest shareholders.

The closing of the transaction would then face regulator and shareholder approval.

"We believe that Sierra shareholders will benefit from this transaction by merging into a well capitalized geothermal company such as Ram Power," added Sierra president and CEO Gary Thompson.

Ram Power shares fell to $2.55 at midmorning on the Toronto Stock Exchange, while Sierra shares were up 1.5 cents to 19.5 cents.

http://www.canadianbusiness.com/mark...ntent=b3512330

[LeftCoaster]

Greystar Resources Ltd. wins environmental assessment appeal, shares skyrocket
By The Canadian Press

VANCOUVER - A favourable ruling by environmental officials in Colombia has stock in Vancouver-based miner Greystar Resources Ltd. soaring on the TSX.

Greystar (TSX:GSL) shares shot up more than 40 per cent in early trading on Toronto's main board after the company announced it won an appeal to reinstate an environmental impact assessment for its Angostura project in Colombia.

By late morning the stock was ahead $1.62 at $5.38 with more than 1.1 million shares traded.

Greystar said Colombia's Ministry of the Environment, Housing and Territorial Development reversed an April 20 decision regarding the legal requirements to proceed with the development of the open pit gold-silver mine. The ministry will now move forward with a review of the environmental impact assessment.

Greystar's president and CEO Steve Kesler says he believes Angostura can be developed in a sustainable way that respects the integrity of the environment while delivering economic benefits to all stakeholders.

Greystar is in the process of securing US$650 million in project financing and says it expects to complete a definitive feasibility study on the project in the second half of this year.

http://www.canadianbusiness.com/mark...ntent=b3512633

[LeftCoaster]

CRCC-Tongguan buys 96.7 per cent of Corriente stock in takeover deal
By The Canadian Press


VANCOUVER - Almost all of the stock of Corriente Resources Inc. (TSX:CTQ) has been acquired by an indirect subsidiary of two major Chinese concerns in an all-cash takeover deal that valued Corriente at some $679 million.

CRCC-Tongguan Investment (Canada) Co. Ltd. said Monday that a wholly-owned subsidiary had acquired 76,478,495 common shares of Corriente at $8.60 a share prior to expiration of its offer on May 28. The offer, first made in December, had been extended several times.

The number of shares tendered and taken up amounted to 96.7 per cent of all Corriente shares on a fully diluted basis, CRCC-Tongguan said in a news release.

The original offer, when announced in late December, represented a 27 per cent premium to Corriente's average trading price for the 30 trading days to Dec. 24, 2009.

On the Toronto Stock Exchange, Corriente shares were up two cents at $8.58 in late-morning trading Monday.

CRCC-Tongguan is a jointly-owned direct subsidiary of Tongling Nonferrous Metals Group Holdings Co. Ltd. and China Railway Construction Corp. Ltd..

Tongling is a state holding enterprise and an integrated mining conglomerate, primarily engaged in copper mining, mineral processing, smelting and refining. In 2008, Tongling was ranked No.2 in China and No.6 in the world in terms of copper cathode production.

CRCC is one of the largest integrated construction enterprises in China and the world.

http://www.canadianbusiness.com/mark...ntent=b3513180

[LeftCoaster]

Denis Jean appointed Catalyst Paper interim president and chief executive
By The Canadian Press

RICHMOND, B.C. - Catalyst Paper (TSX:CTL) has appointed board member Denis Jean as forestry company's interim president and chief executive officer.

The former head of Cascades Fine Papers Group Inc. and executive at Abitibi-Consolidated and Donahue Inc. replaces Richard Garneau, who left Catalyst on Friday.

Catalyst chairman Michel Desbiens said Jean knows both the industry and the company's challenges. He said the appointment allows the board to find a permanent CEO and assure a "seamless transition."

Catalyst also announced the appointed four new board members and the resignation of former B.C. finance minister Gary Collins who had served on the board for the past five years.

Joining the Catalyst board are former B.C. attorney general Geoff Plant, Douglas Hayhurst, Allan Miller,and Dallas Ross, a partner and founder of the B.C. based private investment partnership, Kinetic Capital Partner.

Catalyst Paper, based in Richmond, B.C., manufactures specialty printing papers, newsprint and pulp at six mills in British Columbia and Arizona.

http://www.canadianbusiness.com/mark...ntent=b3512131

[LeftCoaster]

Genco Resources able to buy explosives, mine to return to full production
By The Canadian Press

VANCOUVER - Genco Resources Ltd. (TSX:GGC) said Monday it has been granted authority to buy explosives for use at La Guitarra mine in Mexico, the last requirement to return to full production.

The company said it will now begin to hire additional staff as it ramps up production over the next months.

Genco said it is also working on extending its mine plan to develop adjoining underground areas.

Shares in the company were down 1.5 cents at 36.5 cents on the Toronto Stock Exchange on Monday

http://www.canadianbusiness.com/mark...ntent=b3517424