Amarin to raise $70 million; Corcept seeks $18 million; Midlands Minerals eyes units sale

By Stephanie N. Rotondo

Portland, Ore., Oct. 13 - The private placement market saw an uptick in deals Tuesday following a semi-holiday weekend. Among the most prevalent sectors represented were biopharmaceuticals and gold explorers.

Amarin Corp. plc brought a $70 million private placement to market. The company will issue American Depositary Share units to raise the funds.

Also in the biopharma space, Corcept Therapeutics Inc. said it would issue common-share units in its effort to raise $18 million. The financing has already attracted new investors to the company, including Federated Kaufmann Funds.

In the gold exploration sector, Pelangio Exploration Inc. said it wrapped a C$7 million private placement of units. The proceeds will be used for drilling programs at the company's Ghana assets.

Also, Midlands Minerals Inc. announced it was looking to take in C$6 million from the private sale of equity units. A company spokesperson said the deal - and the company overall - presented a good opportunity for those investors looking to enter the gold market.

American Sierra Gold Corp., another gold producer, said it had recently secured a $6 million line of credit. The funds will help the company advance its operations and acquisitions strategies.

Amarin to raise $70 million

Dublin-based Amarin Corp. will conduct a $70 million private placement of American Depositary Share units, according to a press release.

The proceeds will consist of $66.4 million in cash and $3.6 million from the conversion of convertible bridge notes.

For the $66.4 million portion, Amarin will sell 66.4 million units at $1.00 each. The units will contain one of the depositary shares and one half-share warrant. Whole five-year warrants are exercisable for one ADS at $1.50.

For the conversion of the bridge notes, Amarin will issue 4 million of the same units at $0.90 each.

Proceeds will be used to advance phase 3 clinical trials, for the retirement of the bridge notes and for general corporate purposes. Settlement is expected "shortly," according to the release.

Amarin's equity (Nasdaq: AMRN) gained 2 cents, or 1.27%, to $1.60. Market capitalization is $43.9 million.

Amarin is a clinical-stage biopharmaceutical company. Along with its corporate headquarters in Dublin, Amarin's development headquarters is Mystic, Conn.

Corcept seeks $18 million

Corcept Therapeutics will raise $18 million from a private placement of common-share units, the company announced.

Corcept will issue about 12.6 million units consisting of one common share and one warrant equal to 0.35 of a common share. The units will sell at $1.43 each, and each whole warrant is exercisable at $1.66 for three years.

Existing investors participating in the deal include Longitude Capital Management, Sutter Hill Ventures and Alta Partners. New investors include Federated Kaufmann Funds.

Proceeds from the financing will be used to complete enrollment for the company's phase 3 trial of Corlux for Cushing's Syndrome and the submission of its Cushing's Syndrome New Drug Application to the Food and Drug Administration, as well as for general corporate purposes, including working capital. Settlement is expected by Oct. 16.

The company did not return calls seeking comment Tuesday.

Corcept's stock (Nasdaq: CORT) improved by 27 cents, or 19.57%, to $1.65. Market capitalization is $73.2 million.

Corcept Therapeutics is a Menlo Park, Calif.-based pharmaceutical company focused on the treatment of severe psychiatric and metabolic diseases.

Pelangio settles unit sale

Pelangio Exploration pocketed C$7 million from a private placement of equity units.

The deal originally priced for C$5 million on Sept. 25 and included a C$2 million greenshoe.

Approximately 18.91 million units were issued at C$0.37 each. The units held one common share and one half-share warrant. Each whole warrant is exercisable at C$0.65 for 18 months.

"This financing will allow us to aggressively drill our primary targets on the Obuasi Property in Ghana," stated Ingrid Hibbard, president and chief executive officer, in a news release. "This week, we are commencing a 27,500 metre drill program on the Main Obuasi Mine Trend. Our initial focus will be on the area of the trend nearest AngloGold Ashanti's Obuasi Mine property, which has already exhibited significant potential to host an Obuasi-style ore shoot."

Pelangio's shares (TSX Venture: PX) increased by 4 cents, or 7.14%, to C$0.60. Market capitalization is C$53.6 million.

Pelangio is a Milton, Ont.-based gold exploration company.

Midlands to raise project funds

Among other gold explorers, Midlands Minerals said it arranged a C$6 million private placement of units.

The Toronto-based company will sell 40 million units at C$0.15. Each unit contains one common share and a half-share warrant. Whole warrants are exercisable at C$0.25 for two years.

The deal also includes a 30% greenshoe.

"You always want to get a better price," said Kim Harris, president and chief executive officer. "That's only natural. But you also have to be realistic given the time and the markets the way they are and the fact that we need to get moving quickly."

Harris told Prospect News that the funds would be used for exploration programs at its gold properties in Ghana, particularly its Sian property, which is a "previously producing mine." One of the objectives is to increase production at Sian from 400,000 ounces of gold to 1 million ounces in the next nine months.

"It is exciting," Harris said of the project.

Harris noted that the company had been presenting the financing proposal to potential investors long before the deal was formally announced and that the general reaction was positive.

"You can't help but be positive given the price of gold," she said. "Our stock is undervalued and offers potential for a huge multiple" based on projected deposits at its mines.

"To an investor who is looking for gold, but also considering the long-term and short-term benefits, Sian provides that," she said. "The property could very easily and very quickly get into a cash flow situation."

Settlement is expected by Oct. 30.

Midlands' stock (TSX Venture: MEX) gained 1 cent, or 4.76%, to end at C$0.22. Market capitalization is C$12.9 million.

American Sierra gets credit line

American Sierra Gold secured a $6 million line of credit from Tobermory Holding Ltd. on Oct. 12, according to a regulatory filing.

The company will sell units to the investor in increments of $1 million until Dec. 31, 2011. Each unit will contain one common share and one warrant.

The price per unit will equal 75% of the volume weighted average stock price for the 10 business days preceding each drawdown request. The strike price of the two-year warrants is equal to 175% of the per unit price.

"We are very pleased to have closed this equity financing agreement as it will allow us to fund the implementation of our operations and acquisitions strategy," said Wayne Gruden, president and CEO, in a statement. "This agreement is an indication of confidence in the future of our projects and will ensure the future growth of the company.

"The stock purchase warrants attached to each unit to be sold under this agreement could eventually translate into an additional $10.5 million in funding available to the company."

Proceeds will be used for operating expenses, acquisitions, working capital and general corporate purposes.

American Sierra's equity (OTCBB: AMNP) gained 6 cents, or 5.31%, to $1.19. Market capitalization is $103 million.

American Sierra Gold is a Reno, Nev.-based gold exploration company.

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