Queensland to sell receipts; PanWestern eyes reorganization funds; GoldQuest seeks C$3 million

By Stephanie N. Rootndo

Portland, Ore., Feb. 23 - Mining and energy companies resumed the top spot in Tuesday's PIPE market, bringing the bulk of the day's deals.

Queensland Minerals Ltd. is looking to raise C$10 million from a private placement of subscription receipts. The deal was announced in connection with an acquisition of assets.

Meanwhile, PanWestern Energy Inc. brought a C$6 million placement of stock to market. The transaction comes as part of the company's planned reorganization and recapitalization, which includes an acquisition.

GoldQuest Mining Corp. is seeking up to C$3 million via a brokered and non-brokered placement of units. The funding will be used for work at the company's Spain and Dominican Republic properties.

In completed deals, China Swine Genetics Inc. said it raised $2.17 million from a private placement of convertible notes.

And, Antler Creek Energy Corp. announced it is planning to raise $2 million from a private placement of units. The proceeds will be used to acquire certain gas leases in Texas.

Queensland to sell subscriptions

Queensland Minerals announced a C$10 million private placement of subscription receipts.

The company will sell the subscriptions at C$0.30 on a best-efforts basis. Each subscription is convertible into one common share and one half-share warrant. Whole warrants are exercisable at C$0.42 for two years.

The announcement of the financing came in conjunction with news that Queensland had entered into a non-binding letter of intent with Dundee Precious Metals Inc. "to acquire DPM's right, title and interest in mineral licenses related to the Surdulica molydenum project, the Tulare copper and gold project and the Karmanica gold project located in Serbia and all other associated assets and liabilities," according to a press release.

The private placement must be completed in order for the asset purchase to close. Settlement is expected by March 31.

Queensland's stock (TSX Venture: QML) ended steady at C$0.22. Market capitalization is C$4.54 million.

Queensland Minerals is a Longueuil, Quebec-based mineral exploration company.

PanWestern to raise funds

PanWestern Energy is seeking C$6 million via a private placement of equity, according to a press release.

The Calgary, Alta.-based oil and gas company will issue 30 million common shares at C$0.20 per share in the non-brokered transaction. Company insiders are expected to subscribe for up to C$3 million of the shares.

The financing is part of a reorganization and recapitalization effort by the company. As part of that process, PanWestern is acquiring privately held Northern Hunter Energy Inc., and, as such, its management team and board of directors will change. The new company will be dubbed Valeura Energy Inc. and is expected to be debt-free, with a cash balance of approximately C$5 million.

Proceeds from the financing will be used for drilling efforts at the company's Southern Alberta properties, as well as "for general working capital purposes in pursuit of the international growth strategy," the press release said.

PanWestern's shares (TSX Venture: PW) have been halted for trading as part of the process. The company expects the shares will resume trading Feb. 24. Market capitalization is C$9.49 million.

GoldQuest aims for C$3 million

GoldQuest Mining, a Vancouver, B.C.-based gold exploration company, said it intended to raise up to C$3 million from a brokered and non-brokered private placement of units.

Approximately C$1.5 million is expected to be raised in the brokered portion, which also includes a C$400,000 greenshoe. The remaining C$1.1 million will come from the non-brokered tranche.

All told, the company is looking to issue 20.8 million units at C$0.125 each. The units will contain one common share and one half-share warrant. Whole warrants are exercisable at C$0.20 for two years.

"The company intends to use the net proceeds from the sale of the units to execute a detailed strategic exploration plan developed for both Spain and the Dominican Republic, for working capital and general corporate purposes," the company said in a press release.

"In Spain, the strategic plan includes the compilation of the historical Toral project and regional data and the exploration of the district and Toral project along strike. In the Dominican Republic, the company intends to fast-track several gold-copper targets to drill stage including the Las Tres Palmas epithermal gold project, formally part of the Gold Fields funded joint venture."

The brokered part of the deal is expected to settle by March 12. The non-brokered tranche is slated to close March 31.

GoldQuest's equity (TSX Venture: GQC) dropped 1½ cents, or 10.34%, to C$0.13. Market capitalization is C$8.31 million.

China Swine seals $2.17 million

China Swine Genetics took in $2.17 million from a private placement of 10% secured convertible notes, the company said in a regulatory filing.

The deal settled Feb. 22.

The notes come due Feb. 22, 2011 and are automatically convertible into common stock at a 50% discount should China Swine conduct an equity financing for $5 million. However, if no other financing is done before maturity, noteholders will receive warrants equal to the principal of the notes, which will be exercisable at $1.50 per share.

China Swine's stock (OTCBB: CSWG) closed unchanged at $8.10. Market capitalization is $162 million.

China Swine Genetics is a Harbin, China-based company focused on swine husbandry.

Antler seeks $2 million

Antler Creek Energy is planning a $2 million non-brokered private placement of common-share units.

The company will sell 2 million of the units at $1.00 each on a best-efforts basis. The units will consist of one common share and one half-share warrant. Whole warrants are exercisable at $1.10 until Feb. 18, 2011 and at $1.25 from then to Feb. 18, 2012.

The proceeds will be used to acquire gas mineral leases in Zavala, Dimmitt and Maverick counties in south Texas. Settlement is expected by March 5.

Antler's equity (TSX Venture: AFE) finished unchanged at C$0.45. Market capitalization is C$1.8 million.

Antler Creek Energy is a Calgary, Alta.-based junior oil and gas company.

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