Puramed secures equity financing; SinoCoking closes unit sale; Silvermex seals C$6.91 million

By Stephanie N. Rotondo

Portland, Ore., Feb. 8 - After last week's double-digit frenzy in the PIPE market, Monday started off rather lackluster, as only a few new deals came out.

Puramed Bioscience Inc. announced that it had secured a $7.5 million private equity agreement with an investor. The terms allow for the sale of common shares at a 92% discount.

Meanwhile, SinoCoking Coal and Coke Chemical Industries Inc. also completed a deal, taking in $7.09 million from a private placement of units.

Silvermex Resources Ltd. wrapped a private placement of units, as well. The deal was oversubscribed, resulting in total proceeds of nearly C$7 million.

Also, Compass Gold Corp. a currently inactive exploration company, said it had increased the size of a previously announced private placement of units. The deal was raised to C$2 million from C$1.5 million.

Puramed secures equity financing

Puramed Bioscience inked an agreement with Southbridge Partners II LP in which Southbridge will provide a $7.5 million private equity facility.

The deal was signed Feb. 2, according to a regulatory filing.

Under the terms of the two-year agreement, Southbridge will purchase shares of Puramed at a 92% discount to the average of the two lowest closing bid prices of any two trading days during the five days before the draw request.

Calls seeking comment were not returned Monday.

Puramed's stock (OTCBB: PMBS) fell 8 cents, or 11.11%, to $0.64. Market capitalization is $8.2 million.

Puramed Bioscience is a Schofield, Wisc.-based developer of non-prescription medicinal and health care products.

SinoCoking completes unit sale

SinoCoking Coal and Coke Chemical Industries, formerly known as Ableauctions.com Inc., raised $7.09 million from a private placement of units, the company said in an 8-K filing.

The Coquitlam, B.C.-based company sold approximately 1.18 million units at $6.00 each. The units consist of one common share and one half-share warrant. Whole warrants are exercisable at $12.00 for five years.

The company could not be reached for comment Monday.

The recently merged company expects that its stock will begin trading under its new ticker (OTCBB: SKOK) sometime this week. The existing shares (Amex: AAC) ended unchanged at $1.30. Market capitalization is $10.6 million.

Silvermex seals C$6.91 million

Silvermex Resources' previously announced private placement of units was completed - and oversubscribed - according to a press release.

The deal originally priced for C$6.3 million with a C$450,000 greenshoe on Feb. 2. Silvermex raised a total of C$6.91 million.

The Vancouver, B.C.-based company sold approximately 15.35 million units at C$0.45 per unit. Of those, approximately 1.35 million were part of the over-allotment option.

Each unit contained one common share and one warrant. The warrants are exercisable at C$0.65 for two years.

Duane Nelson, chief executive officer and director of Silvermex, said he was "surprisingly pleased" with the outcome of the transaction "considering the market we went through in the last few weeks." He added that, with the over-subscribed greenshoe, it showed that investors were supportive of the direction the company was going.

"Even when the stock was below the issue price, we were still getting calls," he said.

Proceeds from the financing will be used for assessing the company's San Marcial/Rosario project in Mexico, as well as for general working capital.

Silvermex's equity (TSX Venture: SMR) held steady at C$0.435. Market capitalization is C$23.8 million.

Compass deal upsized

Compass Gold, a Vancouver, B.C.-based exploration company, said it increased a previously announced private placement of units.

The deal originally priced at C$1.5 million on Dec. 4. The company now intends to raise C$2 million.

A total of approximately 13.33 million units will be issued at C$0.15 per unit. The units will hold one common share and one half-share warrant. Whole warrants are exercisable at C$0.20 for two years.

Proceeds will be used for exploration work at Compass' Africa Mining's Yanfolila permit and for general working capital.

Compass' shares (TSX Venture: CVB.H) were unchanged at C$0.19.

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