TSX Venture slips, Sept. 30-Oct. 4: Abitibi Royalties, Cobalt 27 Capital, Novo Resources, Titanium Corp.

The S&P/TSX Venture Composite Index fell 1.9% to 558.76 during the trading week.

Shares of Abitibi Royalties rose 34¢ (2.4%) to $14.44. The company announced on Sept. 23 that it received conditional acceptance from the TSX Venture Exchange to buy up to 626,695 of its common shares for cancellation (5% of all of its issued and outstanding shares) under a normal course-issuer bid. Abitibi Royalties has been rebuying its shares since 2015, and said the practice is warranted when the trading price of its shares is below management’s estimated after-tax net present value.

Cobalt 27 Capital shares rose 22¢ (5.5%) to $4.23 per share. The company announced on Oct. 1 that after “extensive consultations with shareholders,” Pala Investments had sweetened the terms of its proposed acquisition of the company. Under the amended agreement, Pala will acquire the remaining shares of Cobalt 27 that it doesn’t already own for $4 per share, up from its previous offer of $3.57 per share, which represents another $30 million in cash for Cobalt 27’s shareholders. Under the new agreement, change-of-control payments have been lowered US$7.13 million (46%), and the termination fee payable to Pala in the event of a superior proposal has been cut 50% to $7.75 million, from $15.5 million. Pala’s interest in Nickel 28 would increase to 9.9% from 4.9%. Pala will continue to repay Cobalt 27’s net debt, leaving Nickel 28 with no debt and funds of US$5 million in cash if the deal closes. Pala said it was its “best and final offer.” Pala owns 19% of the company.

Novo Resources advanced 9¢ (3.7%) to $2.51 per share. The company reported it held a cash balance of $39.9 million and working capital of $36.7 million as of Sept. 30. The company also reported that Sumitomo Corp. of Japan, which has an option to earn up to 40% of Novo’s Egina gold project in Australia for US$30 million over three years, had spent A$2.6 million ($2.3 million) on the project as of Sept. 30.

Titanium Corp.’s shares rose 9¢ (13.6%) to 75¢. The company announced on Oct. 1 that it had issued 110,997 deferred share units at 75¢ per share to non-executive directors under the company’s shareholder-approved, deferred share-unit plan (DSU) to settle $83,233 of directors’ compensation for the quarter ended Sept. 30.

The DSUs will be settled in Titanium Corp.’s common shares when a director retires from all positions with the company.