LONDON (Thomson Financial) - UK small caps closed lower today, bucking blue chip gains, with Black Rock Oil & Gas sliding as it said it is in talks for a possible merger, offer or financing.

At the close, the FTSE Small Cap index was 21.5 points down to 2,709.3, while the FTSE 100 index rose 99.9 points to 5,512.7.

Black Rock Oil & Gas extended losses, down 1.375 to 3.625, as it said it is in talks with "a number of parties" regarding additional financing, a merger proposal or offer for the company or its assets by the board's end-August objective.

Gaming machine technology developer Inspired Gaming fell 8-1/4 to 41 as it sold its pubs arm, incurring some 20 million pounds cash costs in the process, and said it plans to raise some 40 million pounds in a preference share issue.

It led Brewin Dolphin to keep a 'sell' rating on the stock as it cut its price target to 25 pence from 55.

Netcall pulled back slightly from earlier losses, but still ended the session 0.875 down to 8.375 after saying it sees full-year sales and profits below market expectations.

Staying with numbers news, Helphire's in-line update failed to inspire, with shares falling 25-1/4 to 104-1/4.

Redrow was 12-1/4 weaker to 98-1/4, after finding itself on the wrong-end of an RBS de-rating as it slashed its target price on the stock to 110 pence from 250 pence along with other companies in the UK housebuilding sector.

A broker downgrade continued to weigh in on BTG, with shares down 6-1/2 to 170, as Landsbanki cut the stock to 'hold' from 'buy', advising investors to "lock in" profits.

Turning to the risers, and Tanfield Group soared 0.85 a penny to 5.71 -- or 17 percent -- as it rallied back from recent weakness.

Alba Mineral Resources stayed 0-1/4 of a penny higher to 1.625 on news of a further two exploration permits in Mauritania.

Sector peer Kryso Resources extended gains, up 1.125 to 9.875, as it announced in a drilling update that further exceptional assay results have been received from diamond core drilling at its 100 percent-owned Pakrut gold project.

Henderson Morley gained 0.025 of a penny to 0.525 of a penny, as it announced it is in talks with a number of animal health companies regarding further development of a fish vaccine adjuvant.

Burgeoning profits pushed Trust Property Management Group 1 higher to 9-1/2 as it posted its first full-year pretax profit of 322,000 pounds on revenues of 3.06 million pounds.

Spice proved a hot pick, gaining 27-1/2 to 528, after its 40 percent full-year pretax profit surge.

Investec Securities and Altium Securities left 'buy' ratings on the stock in response, with the results coming in slightly above Investec's expectations.

Shieldtech stayed 1 up to 14-1/2 after announcing second-half trading was significantly better than the first.

Sales for the year to end-June slumped to about 6 million pounds from 11.5 million pounds in 2007.

Begbies Traynor hardened 11-1/2 to 175 in anticipation of full-year results on Wednesday.

Cancer drug developer Antisoma ticked up 0-1/4 to 21-1/4, as it said early findings from phase II trials of AS1411 -- used to treat relapsed and refractory acute myeloid leukaemia (AML) -- "show promise".

A contract win moved Galleon Holdings 1 up to 21-3/4, after it won a deal with China's Hunan Television to develop and facilitate interactivity for a range of programmes to be broadcast on its entertainment channel. hannah.benjamin@thomsonreuters.com hmb/kf1

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