SMSA Palestine seeks $20 million; Clean TeQ to issue converts; Alexandria Minerals amends deal

By Stephanie N. Rotondo

Portland, Ore., July 28 - SMSA Palestine Acquisition Corp. said it had arranged a $20 million private placement, according to an 8-K filed with the Securities and Exchange Commission on Wednesday.

The company intends to use proceeds to fund an acquisition.

Clean TeQ Holdings Ltd. is meantime looking to raise $6 million. Those funds could also be used for an acquisition, the company said. To raise the proceeds, the company has inked a deal with an investor for a convertible note facility.

Elsewhere, Alexandria Minerals Corp. announced it had revised the terms of a previously announced private placement. The company lowered the price per unit, which resulted in an increase in the total number of units it intends to sell.

Creston Moly Corp. also said it had amended the terms of its private placement. The company upped the total amount it was seeking from the financing, due to investor demand.

SMSA seeks $20 million

SMSA Palestine Acquisition, a Chengdu, China-based development stage company, said it had negotiated a $20 million private placement of units.

The deal priced July 23, according to a regulatory filing.

SMSA will issue approximately 2.54 million of the units at $7.88 each. The units will contain one common share and one fifth-share warrant.

Whole warrants are exercisable at $9.45 for three years. The strike price represents a significant premium over the July 23 closing share price of $0.15.

Proceeds will be used to fund the planned acquisition of Sino Oriental Agriculture Group Ltd. and its subsidiaries. Additionally, the funds will also provide working capital to support operations and growth of the newly combined company.

SMSA's stock (OTCBB: SMPN) was unchanged at $0.15.

Clean TeQ to issue converts

Clean TeQ Holdings secured a $6 million convertible note facility, according to a press release.

La Jolla Cove Investors Inc. is the investor.

Clean TeQ will sell 4.75% convertible notes to the investor in four equal tranches. Each note matures within three years of issuance.

The notes are convertible into ordinary shares at the lesser of A$2.50 per share or a 20% discount to the five-day volume weighted average price calculated at conversion.

"This facility provides Clean TeQ with additional working capital to support the commercialization of its technologies and to pursue acquisition opportunities across each of its divisions," said Greg Toll, chief executive officer, in the release. "We are progressing with a possible acquisition in the USA."

Clean TeQ's equity (Australia: CLQ) closed at A$0.285.

Clean TeQ Holdings is a Dandenong South, Australia-based provider of purification services for air, water and mineral resources.

Alexandria amends unit price

Alexandria Minerals said it had revised the terms of a previously announced C$5 million private placement of units, lowering the price per unit to C$0.18.

The units had originally priced for C$0.20 each on July 6.

The Toronto-based company now intends to sell 27.78 million of the units. Each unit will hold one common share and one full warrant, exercisable at C$0.22 for one year.

Originally, the units held a half-share warrant. The strike price of the warrants represents an 18.92% premium over the July 6 closing share price of C$0.185.

Matthew Morrish, corporate development manager for Alexandira, said that market conditions resulted in the amended financing.

"Right now, given the current state of the markets and recent trading activity in our stock, it's been hard [to attract the type of investors the company wants] given the premium," Morrish told Prospect News.

He said that the company hopes to acquire "larger strategic partners," both from retail and institutional firms, who will become long-term investors in the mineral exploration and development business.

"We're really at a turning point when it comes to the development of our organization," he said. "Given the economic turbulence we have been experiencing, being able to secure this financing in the quickest way possible is in the best interest of our shareholders."

Proceeds will be used for exploration at Alexandria's Ontario and Quebec properties, specifically at the Akasaba project in Val D'Or, Quebec. The funding could also be used for general corporate purposes.

Alexandria's equity (TSX Venture: AZX) gained 1½ cents, or 9.09%, to C$0.18. Market capitalization is C$16.56 million.

Creston upsizes deal

Creston Moly also changed the terms of a previously announced private placement, raising the total amount sought to C$3.74 million.

The deal originally priced at C$3 million on July 6. The company said the increase was due to investor demand.

The company is now selling approximately 16.67 million common shares at C$0.18 each. The price per share is equal to the July 6 closing share price.

Creston said the deal will come in two tranches, with the first settling Wednesday for proceeds of C$3.69 million. The second tranche is expected to close within the next two weeks.

Proceeds will be used to help complete a feasibility study on the El Creston molybdenum deposit in the second quarter of 2011.

Creston's stock (TSX Venture: CMS) improved by 2 cents, or 11.76%, to C$0.19. Market capitalization is C$44.64 million.

Creston Moly is a Vancouver, B.C.-based mineral exploration company.

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