This item is part of Stockwatch's value added news feed and is only available to Stockwatch subscribers.

Here is a sample of this item:

by Will Purcell

The diamond and specialty minerals stocks box score for Tuesday was a positive 82-77-151 as the TSX Venture Exchange rose fractionally to 603. Good grief, can it be? For the first time in a few years, a private explorer is looking to go public through a reverse takeover of a cash shell based on a diamond property, although the crux of that property appears to be a major geophysical anomaly that has befuddled a few generations of geologists.

Craig Rollins, David De Witt and Marcel de Groot's Drummond Ventures Corp. (DVX.P: $0.12) has firmed up an arrangement with Carson Phillips's private Elton Resources Corp., whereby the latter company will go public, sailing onto the exchange with its flagship Darnley Bay property in tow. The resulting entity, which will assume Elton's moniker, will have 95.5 million shares outstanding.

Just over 10.2 million will be held by Drummond shareholders -- and to do so, that company will first split its shares 2:1. Elton's current shareholders will receive 35 million shares of the merged entity, while another 16 million shares will be held by Generation Mining Ltd. (GENM). Generation, which rose two cents to 29.5 cents on 404,000 shares today, is getting the shares as a result of it passing along the Darnley Bay property to Elton.

The remainder is available to Stockwatch subscribers.
Sign-up for a FREE 30-day Stockwatch subscription and SEE NO ADS