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by Stockwatch Business Reporter

The TSX Venture Exchange increased a fraction to 703.65 Monday. Frank Giustra's halted NEX shell, Tapango Resources Ltd. (TPA), is piggybacking a deal arranged by Kurt Bordian's NEX shell, Palo Duro Energy Inc. (PDE). Last October, Palo Duro said it would complete a reverse takeover of CarbonOne Technologies Inc., an industrial company that hopes to produce carbon ceramic composite materials as replacements for wood, metal, concrete and plastic, from a manufacturing facility in Buffalo, N.Y.

Tapango and Palo Duro will now jointly acquire CarbonOne. They will structure the deal such that Palo Duro will first roll back 1:4, leaving it with 8,054,587 postconsolidated shares, and then issue up to 59,905,000 postconsolidated shares to the shareholders of CarbonOne. Immediately afterward, Palo Duro will acquire Tapango for 7,803,652 postconsolidated shares, which means Tapango shareholders will receive 1.071 postconsolidated Palo Duro shares for each Tapango share held. Tapango's contribution to this transaction is its treasury. It had a working capital of $1.2-million on March 31, 2015, while Palo Duro had $770,000 on Dec. 31, 2014. Following the reverse takeover, the new company will trade on the TSX-V under the name CarbonOne Technologies Inc.

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