Yukon-Nevada Gold gets $25 million investment from Sprott; CleanTech wraps oversubscribed deal

By Stephanie N. Rotondo

Portland, Ore., July 13 -Yukon-Nevada Gold Corp. said it had reached an agreement with Sprott Asset Management LP to invest $25 million via a private placement of senior secured notes.

According to a company spokesperson, Sprott has been an active investor of the company from the beginning, given the money manager's interest in gold.

Elsewhere, CleanTech Innovations Inc. settled a private placement of units, raising $10 million. The company said the deal was "highly oversubscribed."

Also, Full Metal Minerals Ltd. brought a C$2.02 million non-brokered private placement of units to market. The financing comes just a few days after the company closed a brokered private placement in which it pocketed over C$3 million.

Yukon-Nevada gets funds

Yukon-Nevada Gold is seeking $25 million from a private placement of senior secured notes, the company announced.

Sprott Asset Management LP is the investor.

The notes will come due March 31, 2013. Yukon will make monthly payments on the note equal to the dollar value of 1,000 ounces of gold, provided the company can guarantee a minimum rate of return of 5%. Additionally, the notes are secured by all the assets of Queenstake Resource U.S.A. Inc.

Sprott will also receive three-year warrants equal to 25 million common shares. The warrants are exercisable at C$0.40, which represents a 33.75% premium over the July 12 closing share price of C$0.265.

"With Sprott, they are always interested in gold," said Nicole Sanches, investor relations manager of the Vancouver, B.C.-based company. "Gold is 'it' for Eric [Sprott, founder of the fund].

"Sprott has been an investor in Yukon-Nevada since we started the company in 2005," she continued. "They had a huge interest in Jerritt Canyon when Queenstake had it. When we decided to shut down the property and do an overhaul of everything, they stayed with us. They have supported us.

"They really believe in Jerritt Canyon," she added.

Sanches said a majority of the funds would be spent on the company's milling facility at the Jerritt Canyon Gold Project.

"We were shut down for about a year and a half or so and we need to build up inventory in our warehouses," she explained. Without any cash flows, the company used up most of its reserve parts for the mill, which runs "24/7," she explained.

The deal will "probably [close] in a couple of weeks," Sanches noted.

Yukon-Nevada's equity (Toronto: YNG) closed unchanged at C$0.265. Market capitalization is C$175.06 million.

CleanTech deal oversubscribed

CleanTech Innovations, a New York-based designer and manufacturer of high performance clean energy products, wrapped a private placement of units, taking in $10 million.

The deal was "highly oversubscribed," according to a press release.

The company sold approximately 3.33 million units at $3.00 each. The units contained one common share and one warrant equal to 0.15 common shares.

Whole warrants are exercisable at $3.00 for three years. The strike price represents a 166% discount to the July 12 closing share price of $8.00.

"We are very pleased with the strong demand for this financing led by blue chip institutional investors in an expanded and highly oversubscribed offering," said Bei Lu, chairman and CEO, in the release.

"CleanTech intends to use the capital to expand significantly our production capabilities in order to fill rapidly growing orders for wind towers from our longstanding customers, including China's top three largest national utility companies."

CleanTech's shares (OTCBB: EVCPD) improved by 50 cents, or 6.25%, to $8.50.

Full Metal seeks C$2.02 million

Full Metal Minerals publicized its plan to raise C$2.02 million via a non-brokered private placement of units.

The company will issue 11.2 million of the units at C$0.18 each. The units will hold one common share and one half-share warrant.

Whole warrants are exercisable at C$0.25 for two years, representing a 42.86% premium over the July 12 closing share price of C$0.175.

The non-brokered financing is in addition to the C$3.1 million brokered private placement, which closed July 9.

According to Jeff Sundar, vice president of investor relations, it was always the company plan to conduct the two deals. Sundar said the company decided it wanted to raise about C$5 million and elected to do so via non-brokered and brokered transactions.

Sundar added that a majority of the proceeds will be used for drilling work at the company's Forty Mile site in Alaska, while about C$1 million will be used at the Grizzly Butte property. Sundar called the latter - an acquisition from Rio Tinto - a "really strong copper and gold resource."

Full Metal's stock (TSX Venture: FMM) held steady at C$0.175. Market capitalization is C$14.77 million.

Full Metal Minerals is a Vancouver, B.C.-based mineral exploration company.

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