Bronco Energy upsizes convertibles; Magma arranges oversubscribed deal; xG to raise $6 million

By Stephanie N. Rotondo

Portland, Ore., April 22 - Bronco Energy Ltd. upsized a placement of convertible debentures Wednesday.

As previously reported, the company had announced the sale as a C$15 million deal with a C$5 million greenshoe. The deal was lifted to C$24 million.

Meanwhile, Magma Metals Ltd. announced a placement of shares. The company, which expects to bring in A$16 million from the financing, added that the deal was initially oversubscribed.

xG Technology Inc. is looking to raise $6 million, according to a press release. The company plans to sell new common stock to one investor.

Bronco upsizes convert placement

Bronco Energy upsized a private placement of converts that originally priced on Tuesday.

As previously reported, the Calgary-based company plans to sell 6% secured subordinated convertibles. The deal originally priced at C$15 million with a C$5 million greenshoe. However, the company lifted the deal to C$24 million.

The notes due April 30, 2012 are convertible into common stock at a conversion price of C$0.50.

Also, investors will receive 1,000 warrants per C$1,000 of debt. The warrants are exercisable at C$0.57 until April 30, 2014.

"The market's confidence in Bronco enabled us to increase the offering to C$24 million," said Peter Pelensky, top executive at Bronco, in a statement. "The proceeds will fund the working capital deficiency and fund our planned 2009 capital expenditures to bring on production from the last 10 of our 68 wells and upgrade the battery to reduce operating costs. This financing secures a healthy balance sheet for further development of our reserves."

Bronco's shares (Toronto: BCF) dipped 6 cents, or 11.32%, to C$0.47.

Magma arranges oversubscribed deal

Magma Metals announced an oversubscribed private placement of shares.

The deal is expected to bring in A$16 million. Magma will sell 50 million shares at A$0.32 per share. The placement is planned in two tranches, with an initial 15 million shares being sold next week for A$4.8 million. The remaining shares will be sold after the company obtains shareholder approval, expected sometime in May.

Of the investors who have already expressed interest, Anglo American plans to participate in the offering, in an effort to maintain its 12% stake in the company.

Proceeds from the transaction will be used to further the Thunder Bay North Platinum-Palladium project in Canada.

Magma's stock (Australia: MMB) closed at A$0.42.

Magma Metals is a Perth, Australia-based mining and exploration company.

xG to raise $6 million

xG Technology is planning to raise $6 million through a private placement of stock, the company announced.

xG will sell 2 million common shares at $3.00 per share to Spartan Mullen & Cie SA, according to a press release. Investors will also receive warrants good for 1 million additional shares at $4.00 until July 31; another set of options good for 1 million shares at $5.00 per share until Sept. 30; and yet another set good for 1 million shares at $6.00 per share until Dec. 31.

"xG presents an outstanding investment opportunity," said Guy de Chimay, director of Spartan Mullen, in a statement. "We have been buying shares in the open market for some time with only limited success owing to the lack of market liquidity. Therefore, we are extremely pleased to be able now to purchase a large block of stock from the company. We believe that the prospects for the company are exceptionally attractive and, consequently, we have no hesitation in investing at a substantial premium to the company's recent share price. We are also delighted to have the right to purchase more shares in the company going forward under the options granted to Spartan Mullen & Cie S.A."

"While the company already had a strong balance sheet, when capital market conditions are making it difficult for other companies to raise any capital, let alone at a premium, and we are afforded the opportunity to fund accelerated product development, we believe this investment will be great for the company," added Rick Mooers, chairman and chief executive officer of xG technology. "Given Guy de Chimay's long-standing and consistent track record of strong returns as well as his history of long-term investments, this transaction is a great vote of confidence for the company and its current and future prospects."

Proceeds will be used to develop new products.

xG's equity (London: XGT) closed at 175p.

xG Tehcnology is a Sarasota, Fla.-based developer of wired and wireless technologies.

PIPE pieces

African Consolidated Resources plc settled a £2.31 million private placement of stock, according to a press release.

The Kent, England-based mineral exploration company issued approximately 42 million ordinary shares at 5.5p per share.

Elsewhere, Silvore Fox Minerals Corp. plans to sell units to raise C$1 million in a non-brokered private placement.

The Bedford, N.S.-based mineral exploration company will sell units containing one common share and one half-share warrant at C$0.08. Each whole two-year warrant is exercisable at C$0.10 for the first six months, at C$0.12 for the second six months and at C$0.20 thereafter.

Also, the company will issue flow-through units consisting of one flow-through common share and one half-share warrant at C$0.10 per unit. Each whole two-year warrant is exercisable at C$0.15.

African Consolidated's stock (London: AFCR) closed at 7.5p, while Silvore's shares (TSX Venture: SFX) closed at C$0.06 on April 20. Silvore's market cap is C$3.51 million.

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