Eurasian Minerals exploration partner Newmont Mining ups stake to 8.8% in C$5.28 million deal

By Devika Patel

Knoxville, Tenn., May 18 - Canadian exploration companies announced large private placements on Tuesday, as issuers raised cash in connection with mineral projects.

Eurasian Minerals Inc. announced it will sell C$5.28 million in stock to existing shareholder Newmont Mining Corp. The investor will become an 8.8% shareholder through this sale, and the company expects to have more than C$17 million in cash on hand after this placement.

Mansfield Minerals Inc. took in C$5.18 million from a private placement of units, which included a fully exercised greenshoe, raising funds for its Lindero Gold Project.

Also, after the close on Monday, Hughes Telematics Inc. completed a $15.39 million placement of stock, and Forbes Energy Services Ltd. negotiated a $14.52 million sale of convertible preferred stock.

Eurasian plans C$5.28 million

Mineral explorer Eurasian Minerals arranged a C$5.28 million private placement of stock with exploration alliance partner Newmont Mining.

The two companies established a joint venture and regional strategic alliance in 2008 for gold exploration in the Republic of Haiti. Under the agreement, Newmont and Eurasian Minerals are conducting a regional gold exploration program, with Eurasian Minerals as the operator. Newmont is contributing technical support and advice and Eurasian Minerals provides staffing and logistical support.

"We're happy to have Newmont Mining as a shareholder," Eurasian's president and chief executive officer David M. Cole told Prospect News. "It's a testament to our strong business model that Newmont is still buying our stock despite the four-, five-month delays in operations that resulted from the recent earthquake."

Cole said the company has no plans for the proceeds, but that the investment will boost Eurasian Minerals' cash reserves to more than C$17 million.

In the placement, the Vancouver, B.C., company will sell 2.4 million common shares at C$2.20 per share to Newmont Mining, which will then hold an 8.8% stake in the company.

Company shares (TSX Venture: EMX) rose 2.27%, or 5 cents, on Tuesday to close at C$2.25.

Mansfield gets C$5.18 million

Mansfield Minerals sold C$5.18 million of its units Tuesday, at C$1.50 per unit of one common share and one half-share warrant. The whole warrants will be exercisable at C$1.80 until May 18, 2012. The deal included a fully exercised C$675,000 greenshoe and was conducted by a syndicate of agents led by Paradigm Capital Inc. and including Axemen Resource Capital Ltd. and Haywood Securities Inc.

The company said it will use the proceeds to complete the feasibility study on the Lindero Gold Project.

"Lindero has the potential to create significant shareholder value," president and chief executive officer Gordon Leask said in a press release. "We believe the project has extremely attractive characteristics, including projected gold production of 161,000 ounces annually at cash costs of $373 per ounce during the first five years of operation.

"We are now focused on advancing permitting at the project and have engaged Vector Argentina SA to further advance the mine permitting process. As a conventional open pit heap leach project with good accessibility and project logistics, we believe the project could be in production in less than 24 months following receipt of necessary permits and obtaining sufficient financing," Leask stated.

Mansfield is a mining exploration company based in Vancouver, B.C. Its shares (TSX Venture: MDR) dropped 8.25%, or 16 cents, closing at C$1.78 on Tuesday.

Hughes wraps $15.39 million

Atlanta-based Hughes Telematics sold 5,130,500 common shares at $3.00 apiece for $15.39 million, the company reported after the close Monday. The proceeds of the deal will be used for general corporate purposes.

Hughes develops and manages vehicle- and driver-centric solutions to improve the driving and ownership experience. Its shares (OTCBB: HUTC) were unchanged Tuesday, closing at $2.98.

Forbes aims for $14.52 million

Oilfield services contractor Forbes Energy said it has arranged a $14.52 million private placement of 5% series B senior convertible preferred stock. The Alice, Texas-based company will sell 580,800 preferreds at $25.00 apiece in a deal expected to settle on May 20. The preferreds are initially convertible into common shares at 36 shares per preferred and may be redeemed at par plus dividends after three years. They are subject to mandatory redemption after seven years.

Proceeds will be used to repurchase at least $6.6 million of the company's 11% senior secured notes.

Forbes' shares (Toronto: FRB) were unchanged Tuesday, closing at C$0.54.

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