African Minerals to issue stock; Northern Iron plans equity offering; Kandi sells convertibles

By Stephanie N. Rotondo

Portland, Ore., Jan. 21 - The PIPEs market got busy Thursday and deals varied greatly in size and by sector.

Several mineral exploration companies came to market, including African Minerals Ltd. The company said it had orchestrated an £80 million private placement of equity. Also, Northern Iron Ltd. said it was planning a A$41 million private equity offering, as well as a A$13.3 million public equity offering.

Meanwhile, Kandi Technologies Corp. announced it had settled a $10 million sale of convertibles. The deal also included warrants.

Golden Band Resources Inc., yet another mineral exploration company, brought a C$9 million private placement of units. The deal will replace a deal announced back in December, which has been canceled.

Also, Cyclacel Pharmaceuticals Inc. said it was aiming to raise $10 million via a registered direct offering of units. According to a company spokesperson, some investors had developed an "appetite" for the company's stock after a financing earlier this month.

And, Platinum Studios Inc. inked an agreement with a hedge fund for a $5 million line of credit.

African Minerals to issue stock

African Minerals negotiated an £80 million private placement of equity, according to a press release.

The London-based mineral exploration company will sell 20 million ordinary shares at 400p per share.

In addition to the private placement, African Minerals has granted China Railways Materials Commercial Corp. an option to purchase 2.88 million common shares at the placing price.

Proceeds will be used the first phase of construction of key infrastructure at the flagship iron ore project at the Tonkolili property in Sierra Leone.

"We are pleased with the continued support that premier institutional investors in North America and the United Kingdom have given the company, which is a further endorsement of the quality of the Tonkolili project and the executive management team we have assembled at AML," remarked Frank Timis, executive chairman, in the release.

"The proceeds will allow us to expedite the construction of critical infrastructure required for the first phase of construction of our flagship iron ore project. This fund raising, together with the conditional CRM equity deal and two off-take agreements, places the company in a very strong position to realize iron ore production from Tonkolili during the first quarter of 2011."

African Minerals' equity (London: AMI) closed at 409.5p. Market capitalization is £876 million.

Northern Iron plans equity offering

Northern Iron, a West Perth, Austrailia-based mineral exploration company, is seeking A$41 million from a private placement of equity.

OM Holdings Ltd. is the investor.

The company will issue 28.25 million ordinary shares at A$1.45 per share.

Also, Northern Iron will conduct a public institutional offering for proceeds of A$13.3 million. Approximately 9.9 million shares will be sold in that portion of the financing at A$1.35 per share.

"The board of Northern Iron welcomes OM Holdings as a 10% shareholder," stated Neil Hamilton, chairman, in a press release. "We look forward to the addition of OMH's chief executive officer Peter Toth to the board of Northern Iron as a non-executive director and the valuable contribution he will make. We also look forward to the depth of marketing knowledge of bulk commodities into Asia that OMH can provide. The board and management of Northern Iron are excited by OMH's commitment to the Sydvaranger iron ore project as we move towards full production on this long life independent iron ore asset."

Northern Iron's stock (Australia: NFE) ended at A$1.37.

Kandi completes convertible sale

Kandi Technologies raised $10 million from a private placement of 6% senior convertible notes, the company announced.

The two-year notes are initially convertible at $6.25 per common share. The company also has an option to redeem the notes at 125% plus interest.

Investors also received 800,000 three-year warrants. The warrants are exercisable at $6.5625 per share.

"We and our alliance partners are working at top speed to bring our vision of China's first electric vehicle model city to fruition, and I am extremely pleased that, right at the start, Kandi has attracted significant U.S. investor support for our role in this revolutionary project," said Xiaoming Hu, chairman and chief executive officer, in a statement.

"Kandi COCO vehicles with new, patented technology for easy removal and replacement of batteries will be a key element in the startup of this project, and I believe this funding strengthens our ability to meet anticipated first stage vehicle production requirements while also pursuing our legacy business."

Kandi's shares (Nasdaq: KNDI) closed down 51 cents, or 8.99%, to $5.16. Market capitalization is $101 million.

Kandi Technologies is a Jinhua, China-based exporter of recreational vehicles.

Golden Band seeks C$9 million

Golden Band Resources is planning a C$9 million private placement of common share units, the company said in a press release.

The company will sell 36 million of the units in the best-efforts financing at C$0.25 each. The units will consist of one common share and one half-share warrant. Whole warrants are exercisable at C$0.45 for two years.

Also, the company said it had terminated a C$9 million private placement of units. That deal originally priced Dec. 15.

Proceeds from the transaction will be used for general corporate purposes. Settlement is expected by Feb. 4.

Calls seeking comment were not returned Thursday.

Golden Band's stock (TSX Venture: GBN) improved half a cent, or 2.13%, to C$0.24. Market capitalization is C$36.6 million.

Golden Band Resources is a Saskatoon, Saskatchewan-based gold exploration company.

Cyclacel brings direct placement

Cyclacel Pharmaceuticals is aiming to raise $5.88 million from a registered direct offering of units.

The company will sell 2.35 million of the units at $2.50 each. The units will contain one common share and 0.30 warrants. Whole warrants are exercisable at $2.85 for five years.

Settlement is expected by Jan. 25.

Corey Sohmer, investor relations for Cyclacel, said that the funds would be used for "general corporate purposes and for advancing our two drugs in the clinic."

Also, Sohmer said some existing shareholders participated in the deal. Some of them also participated in a financing earlier this month. In this financing, the shareholders "had an appetite" for more and approached the company as they got "more compliant" regarding its overall market cap.

Cyclacel's shares (Nasdaq: CYCC) dropped 21 cents, or 8.05%, to $2.40. Market capitalization is $59.9 million.

Cyclacel Pharmaceuticals is a Berkley Heights, N.J.-based developer of treatments for cancer and other disorders.

Platinum gets credit line

Platinum Studios secured a $5 million line of credit with Dutchess Opportunity Fund, II, LP.

The Fund will purchase common shares over a five-year period. The price per share has yet to be determined.

"The completion of this facility, with an established financing partner such as Dutchess, is a clear indication of investor optimism returning to the capital markets and has provided valuable resources Platinum Studios may need to facilitate its business model," said Scott Mitchell Rosenberg, Platinum Studios' CEO, in a news release.

"We believe in management's efforts to grow the company and this facility provides inexpensive and flexible access capital," added Douglas Leighton, managing director of Dutchess. "Regardless of the ever-tightening capital markets, Dutchess continues to finance the growth of promising companies such as Platinum Studios."

Platinum Studios' equity (OTCBB: PDOS) gained $0.006, or 10.71%, to $0.062. Market capitalization is $13.6 million.

Platinum Studios is a Los Angeles-based comics-based entertainment company.

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