Alhambra settles first tranche; BSD Medical plans direct placement; Salazar seeks C$5 million

By Stephanie N. Rotondo

Portland, Ore., Aug. 19 - Alhambra Resources Ltd. announced Thursday that it had raised more than half of its planned $6 million capital raise.

The company is selling units via a private placement to raise the funds. The remaining portion is expected to close by the end of the month.

Meanwhile, BSD Medical Corp. brought a registered direct offering of stock to market. The medical systems company said two of its existing investors were the participants.

Salazar Resources Ltd. intends to conduct two deals, one brokered and one non-brokered. All told, the company is seeking C$5 million.

And, Ceramic Fuel Cells Ltd. took in £10 million from a private placement of stock. A portion of the financing was underwritten.

Alhambra settles first tranche

Calgary, Alta.-based Alhambra Resources wrapped the first tranche of its previously announced private placement of units, according to a press release.

The company announced the $6 million deal on July 30. Approximately $4.63 million was raised in the first closing.

Alhambra is issuing approximately 13.95 million units at $0.43 each. The units hold one common share and one half-share warrant.

Whole warrants are exercisable at $0.72 for 18 months.

About 10.78 million units were sold in the first tranche. The company said it expects the remaining portion to be fully subscribed, estimating the next closing to take place by the end of August.

"We are very happy to announce the closing of our first tranche of capital which has been raised primarily in Hong Kong," remarked John J. Komarnicki, chairman and chief executive officer, in the release.

"We look forward in expanding our relationship not only with Pinnacle Capital, but also with other key investors in this part of the world. As China continues to make significant investments in Kazakhstan's resource sector, we are very excited to be part of that process and to have new investors who believe in the upside potential of our assets and in our ability to increase shareholders' value by increasing resources, reserves and gold production."

Proceeds from the financing will be used for the exploration and development of the Uzboy Project in Kazakhstan, and for working capital.

Alhambra's shares (TSX Venture: ALH) were unchanged at C$0.44. Market capitalization is C$35.67 million.

Alhambra Resources is a gold exploration and development company.

BSD plans direct placement

BSD Medical is seeking $2.76 million via a registered direct offering of equity, the company announced.

Two existing institutional investors are participating in the deal.

BSD will sell approximately 1.23 million common shares at $2.25 per share. The price per share reflects a 24.24% discount to the $2.97 closing share price on Aug. 18.

Additionally, investors will receive warrants for another 918,750 shares. The warrants are exercisable at $3.27 - a 10.1% premium over the Aug. 18 closing share price - for five years.

Proceeds will be used for continued product development, sales and marketing and general corporate purposes. The company cannot use the funds "to satisfy any existing debt (other than ordinary course trade payables), to redeem any of our outstanding securities or to settle any outstanding litigation," according to a press release.

Settlement is expected by Aug. 24.

The company did not return calls seeking comment on Thursday.

BSD's equity (Nasdaq: BSDM) declined by 52 cents, or 17.51%, to $2.45. Market capitalization is $61.08 million.

BSD medical is a Salt Lake City-based developer and manufacturer of systems to treat cancer and other benign diseases using heat therapy.

Salazar seeks C$5 million

Salazar Resources will raise a total of C$5 million from both a non-brokered and brokered private placement of units.

In the non-brokered portion, approximately 1.82 million units will be issued, and another 2.73 million will be sold in the brokered portion.

The units will be sold at C$1.10 and will consist of one common share and one half-share warrant. The whole two-year warrants are exercisable at C$1.50 in the first year, and at C$1.75 in the second, representing a 20% and 40% premium, respectively, over the Aug. 17 closing share price of C$1.25.

Salazar chose to do the financing as they wanted to "raise money for the project in Ecuador," according to Jeff Tindale of Empire Communications Inc., which handles investor relations for the company.

"They don't have cash flows to do a debt [financing]," he explained as the rationale for using the PIPE market to find the funding. "It would make it a lot more difficult."

Tindale added that response from investors has been "overwhelming.

"It's always what companies hope for," he said.

Neither the company nor Tindale could give a closing date, but Tindale said that Salazar "would like to close as soon as possible."

Salazar's stock (TSX Venture: SRL) dropped 9 cents, or 6.87%, to C$1.22. Market capitalization is C$40.27 million.

Salazar Resources is a Vancouver, B.C.-based resource exploration company.

Ceramic Fuel seals £10 million

Ceramic Fuel Cells, a Victoria, Australia-based developer of technologies used in stationary power generation, said it had raised £10 million from a private placement of ordinary stock.

Nomura Code Securities Ltd. was the underwriter for £6.25 million of the placement.

The company issued approximately 95.24 million of the shares at 10.5p each, reflecting a 9.79% discount to the Aug. 18 closing share price of 11.64p.

Ceramic Fuel is also planning a A$21.5 million rights issue for existing shareholders.

The company intends to use the proceeds to fund its next state of commercial development.

Ceramic Fuel's shares (London: CFU) closed at 11.12p. Market capitalization is £123.59 million.

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