Kelt Exploration (TSE:KEL) is seen as a Buy at High risk and Dundee Capital Markets have a C$6.00 price target on the stock.
A $90mln convertible debenture offering eases any capacity concerns, the broker said on Tuesday.
Kelt announced the offering of $90mln (upsized from $80mln) of convertible debentures at $1,000 per debenture, maturing May 31, 2021.
Directors and officers of Kelt have committed to $15mln of the total offering, in-line with their history of participating in deals. Proceeds from the offering will be used to pay down bank debt and for general corporate purposes.
Kelt also announced that it had added to its position at Progress with the purchase of 600 boe/d (60% light Montney oil) for $18.8mln. The acquisition also includes 4,135 net acres of land and related infrastructure.
Kelt shares were last seen up 7.2% at C$4.18.
Meanwhile, Orocobre (TSX:ORL) is also a Buy at High Risk, according to Dundee, with a raised price target of C$3.60 from a previous C$3.00.
"We recommend Orocobre and increase our target from C$3.00 to C$3.60/sh on a higher DCF multiple of 1.6x from 1.3x. The higher multiple reflects the advanced stage of Olaroz ramp up, decreased execution risk as deliveries are made to battery customers (assuming it is battery grade LCE), and the state of the lithium market," the broker said.
The Australia-headquartered Orocobre shares were up 3.5% at C$3.26.
But one stock Dundee does not rate, is it's own namesake Dundee Precious Metals (TSE:DPM). The broker issued a note to say DPM's first quarter 2016 production results had a positive impact.
DPM reported 1Q in-concentrate production of 38.6 koz Au, 11.2 MMlbs Cu, +22%, +19% The broker's own estimate was of 31.7 koz Au / 9.4 MMlbs Cu.
DPM shares were up 2.2% at C$2.41.