Lakeside expands with C$5 million; Nordic reprices C$3 million; Sinotel sells $11.44 million

By Devika Patel

Knoxville, Tenn., Feb. 10 - Lakeside Steel Inc. said it plans to raise up to C$5 million private placement of units, which includes a C$2 million greenshoe. The Welland, Ont., company recently approved major capital expansion plans, which it hopes will have a positive impact on its margins.

Spanish Mountain Gold Ltd. also announced a C$5 million units placement to raise funds for its gold projects and Nordic Oil and Gas Ltd. arranged C$3 million non-brokered private placement of units that replaces an earlier deal with a higher unit price. Proceeds are earmarked for drilling new wells on two of the company's oil and gas properties.

Beijing's Sinotel Technologies Ltd. raised $11.44 million in a private placement of shares, which will be used to buy design and testing equipment.

Lakeside Steel plans expansion

Steel pipe and tubing manufacturer Lakeside Steel announced a C$3 million private placement of units with a C$2 million greenshoe to raise funds for capital expenditures.

The company will sell the units at C$0.27 apiece on a best-efforts basis via lead agent Northern Securities Inc.

Each unit to be sold in the deal consists of one common share and a half-share warrant. The whole warrants are each exercisable at C$0.40 for two years.

The company announced Tuesday that it approved a significant capital investment for the upcoming fiscal year that is slated to create additional jobs. The company plans to build new facilities in Welland, Ont., and install a casing threading line to perform work that Lakeside currently outsources in Texas, Alberta and Ontario. Once operational, Lakeside will be able to end finish all products produced in its Welland facility. This process, the company hopes, will move Lakeside up the value chain and significantly improve customer lead times.

In addition, Lakeside hopes to install a new slitting line to process the hot band steel used as raw material at its Welland operations. Lakeside currently contracts all of its slitting business to three Ontario-based processors. The company expects that an in-house slitting line would improve margins, reduce costs and provide improved flexibility in raw steel purchasing.

"The capital expansion plans are another step in pursuit of opportunities to grow our business responsibly," Lakeside's president and chief executive officer Ron Bedard said in Tuesday's press release. "We expect the new operations to have a positive impact on working capital, efficiency, margins and customer service. The company has become stronger over the past year and our recent appointment as a TSX Venture 50 company identifies Lakeside as an emerging leader."

The company was named one of the TSX Venture 50, a ranking of strong performers listed on TSX Venture Exchange, on Feb. 5.TSX Venture 50 comprises 10 emerging companies in five industry sectors that have been identified as leaders in Canada's public venture market.

The company's shares (TSX Venture: LS) fell 6.25%, or 2 cents, closing at C$0.30 Wednesday.

Spanish Mountain: C$5 million

Vancouver, B.C., gold explorer Spanish Mountain said it has negotiated a C$5 million private placement of units, which are priced at C$0.33 apiece.

The units comprise one common share and one three-year warrant, which is exercisable at C$0.42.

Proceeds will be used to fund programs on the company's Spanish Mountain and Thunder Ridge properties and for general working capital.

The company's flagship Spanish Mountain gold project in central southern British Columbia has been shown to have large amounts of high-grade gold. The company, which announced several management changes this week, plans to continue drilling in order to ascertain the project's potential and advance it to the development stage.

Company shares (TSX Venture: SPA) rose 4.29% Wednesday, or 1.5 cents, closing at C$0.365.

Nordic's new placement

Nordic is offering 30 million units of one flow-through class A common share and a half-share warrant at C$0.10 apiece in a bid to raise C$3 million for drilling. The company had priced a similar deal in January, but replaced it with its most recent offering, which has the units priced 5 cents cheaper.

Each whole warrant is exercisable at C$0.11 for 18 months.

"A portion of the funds generated from the new offering will be used to drill a new deep test well - at 1,500 meters - on our Talbot Lake property at 10-32-94-11 W5, with the remainder of the money used to drill an additional seven new heavy wells at Lloydminster," Nordic's president Donald Benson stated. "We are particularly excited about the potential of our new well in Talbot Lake."

The Winnipeg, Man., oil and gas explorer has several exploration and development drilling initiatives in Alberta and Saskatchewan. Company shares (TSX Venture: NOG) were unchanged Wednesday, closing at C$0.10.

Sinotel sees $11.44 million

Telecommunications services provider Sinotel said it pocketed $11.44 million by selling ordinary shares via agent UOB Kay Hian Private Ltd.

The 28 million shares, priced at $0.4087 apiece, were issued to raise funds for new design and testing equipment, along with projects. The placement price of approximately $0.4087 represents a 10% discount to the weighted average price of the company's shares on the Singapore Stock Exchange on Jan. 20.

Company shares (Pink Sheets: SNOXY) were unchanged at $7.05 Wednesday.

Investors included Emirates Tarian Asset Management Pte Ltd., OneEquity SG Pte Ltd. and Asian Trust Investments Pte Ltd.

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