Torquay Oil adds warrants to deal; Bglobal wraps offering; Encanto Potash to sell units, stock

By Stephanie N. Rotondo

Portland, Ore., June 18 - Torquay Oil Corp. announced Friday it had revised the terms of a previously announced private placement of subscription receipts.

The company added warrants to the converted subscriptions. Torquay is looking to raise more than C$12 million from the private financing.

In settled transactions, Bglobal plc said it took in £6.5 million from a private placement of stock, along with another £1.5 million from a public stock offering. The proceeds will be used for an acquisition.

Encanto Potash Corp. meantime announced a C$6 million private placement of units and equity. Proceeds will be used, in part, for exploration activities.

And, South American Silver Corp. brought a C$4 million bought deal to market. The company will sell units in the private placement and could raise up to C$6 million, if its over-allotment option is fully exercised.

Torquay adds warrants to deal

Torquay Oil, a Calgary, Alta.-based oil and natural gas exploration company, amended the terms of its previously announced C$12.01 million private placement of subscription receipts, according to a press release.

The deal was announced April 30 and priced June 2.

Torquay is selling the subscriptions at C$1.05 each. The company changed the subscriptions so that they now convert into one class A share and one half-share warrant.

The whole warrants are exercisable at C$1.40 for one year. The strike price is a 33.33% premium over the C$1.05 closing price on June 15.

Originally, the converted subscriptions did not include warrant coverage.

Proceeds will be used for a planned acquisition of oil producing facilities and prospective lands in Saskatchewan, as well as for general corporate purposes. Settlement is expected by June 29.

The company did not return calls seeking comment on Friday.

Torquay's shares (TSX Venture: TOC.A) ended unchanged at C$1.05. Market capitalization is C$6.34 million.

Bglobal wraps equity placement

Bglobal took in £6.5 million from a private placement of ordinary shares, the company announced.

The company also raised £1.5 million via an open stock offer.

Bglobal sold approximately 17.11 million shares in the private placement. Each share was issued at 38p.

Both financings were done in connection with the company's planned acquisition of Utiligroup Ltd.

Bglobal's stock (London: BGBL) closed at 35.25p. Market capitalization is £26.8 million.

Bglobal is a Lancashire, England-based provider of advanced metering technology and services to deregulated global energy markets.

Encanto to sell units, stock

Encanto Potash is seeking C$6 million via a private placement of stock and units, the company said in a press release.

The deal is being conducted on a bought-deal basis.

The Vancouver, B.C.-based company will sell up to C$5 million in flow-through common shares, with each share going for C$0.15 each. For the remaining C$1 million, Encanto will issue units at C$0.15 each. The units will hold one common share and one half-share warrant.

Whole warrants are exercisable at C$0.20 for two years. The strike price represents a 37% premium over the C$0.145 closing price on June 17.

Proceeds from the share sale will be used for exploration work at the company's Saskatchewan properties, while proceeds from the units sale will be used as working capital.

The company did not return calls seeking comment on Friday.

Encanto's equity (TSX Venture: EPO) gained half a cent, or 3.45%, to C$0.15. Market capitalization is C$24.4 million.

South American heralds unit sale

South American Silver arranged a C$4 million bought deal private placement of units, according to a press release.

The deal also has a C$2 million greenshoe.

The Calgary, Alta.-based company will sell 6.35 million units at C$0.63 per unit. Each of the units will contain one common share and one half-share warrant.

Whole warrants are exercisable at C$0.95 for two years. Greg Johnson, president and chief executive officer, said the warrants are being issued at a 50% premium and that the terms of the "very reasonable deal" reflected the same price as the one-week volume-weighted average.

"Basically, it gives us funding to accelerate drilling at our indium-silver project" in Bolivia, he told Prospect news. He added that the company could be adding more drills to the project.

Also, Johnson said the funds would allow the company "to continue planning on our copper-gold project in Chile."

The financing will give South American Silver "sufficient funding into next year," Johnson said. "We're in great shape financially."

South American Silver's stock (Toronto: SAC) fell 3 cents, or 4.41%, to C$0.65. Market capitalization is C$37.8 million.

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