CGA Mining closes equity placement; Endeavour raises $21.11 million; Nordic Mining sells stock

By Stephanie N. Rotondo

Portland, Ore., Feb. 5 - Double-digit deals continued to reign in Friday's PIPE market.

CGA Mining Ltd. said it raised more than C$86 million from a private placement of stock. According to a company spokesperson, the funds will pay off about C$40 million in debt and also brought on some new shareholders.

Endeavour International Corp. was also among the day's bid deal bringers, taking in more than $21 million from a placement of equity.

Meanwhile, Nordic Mining ASA settled a NOK 20 million deal. The company privately sold stock to raise the funds, which will be used for project development.

Among new deals, Peak Energy Services Trust said it will sell trust units in its effort to raise C$16 million. One investor is participating in the deal.

Also, Orbus Pharma Inc. announced a C$8 million financing. The participation of one particular investor will result in a change of ownership, which a company spokesperson said would benefit the pharmaceutical company.

CGA equity placement settled

CGA Mining, a Perth, Australia-based mineral exploration company, raised C$86.02 million from a private placement of equity, the company announced.

The deal originally priced at C$74.8 million with a 15% greenshoe on Jan. 19.

All told, CGA sold 39.1 million common shares - 5.1 million made up the greenshoe - at C$2.20 per share.

Mark Savage, an independent chairman of the company, said that the proceeds will be used, in part, to pay down about C$40 million of debt, including C$25 million in outstanding 12% senior promissory notes. The remaining funds will be used for exploration activities at the Masbate Gold Project and for general corporate purposes.

Savage told Prospect News that existing investors had reacted positively to the deal, which brought on "great new shareholders...a real blue chip register."

"I think they understand that we had some debt to pay off," he noted.

Additionally, Savage said that investors had not expressed concern about dilution. "It's not that much dilution, it's about 15%," he explained.

"We weren't actively seeking [a financing]," he added. "It was brought to us. But it made sense. It was good timing."

CGA's stock (Toronto: CGA) gained five cents, or 2.60%, to C$1.97. Market capitalization is C$564 million.

Endeavour raises $21.11 million

Endeavour International pocketed $21.11 million from a private placement of common stock, the company said in a regulatory filing and subsequent press release.

The Houston-based oil and gas company issued approximately 23.45 million of the shares at $0.90 each.

Proceeds will be used to fund Endeavour's 2010 capital budget.

The company did not return emails seeking comment.

Endeavour's equity (Amex: END) improved by $0.1787, or 22.06%, to $0.9887. Market capitalization is $120 million.

Nordic Mining sells stock

Oslo, Norway-based Nordic Mining took in NOK 20 million from a private stock sale, the company announced.

A total of 20 million shares were sold at NOK 1.00 per share.

"We are pleased to have completed this issue which will strengthen our financial capabilities in the current phase of important development activities for the company," said Lars K. Grøndahl, chief financial officer, in a statement. "In addition our objective to attract high quality investors for the issue has been fully reached."

Proceeds from the fundraising will be used to develop the Engebø, Keliber and Gudvangen projects.

Nordic's shares (Oslo: NOM) closed at NOK 1.26.

Peak Energy plans trust unit sale

Peak Energy Services Trust is seeking C$16 million via a private placement of trust units.

Deans Knight Capital Management Inc. is the investor.

The company will sell 80 million units in the non-brokered financing. Settlement is expected by Feb. 12.

Peak's stock (Toronto: PES.UN) increased 8½ cents, or 38.64%, to C$0.305. Market capitalization is C$11.6 million.

Peak Energy Services Trust is a Calgary, Alta.-based unincorporated open-end investment trust.

Orbus deal brings new ownership

Orbus Pharma negotiated a C$8 million private placement of stock, the company said in a press release.

Nanjing Sanhome Pharmaceutical Co. is among the investor group.

A total of 533.33 million common shares will be sold at C$0.015 each. Nanjing has committed to purchasing approximately 308.28 million shares for proceeds of C$4.62 million.

Upon completion of the financing, Nanjing will hold at least 51% equity interest in the company.

Greg W. Muir, interim president and chief executive officer, said that "shareholders are positive" about the deal "in respect to the company getting refinanced.

"We were basically out of money," he explained.

The deal will also result in "new ownership with good experience," he said, speaking of China-based Nanjing. That will also benefit Orbus, as it will increase its presence globally.

Proceeds will be used for development plans, to pay liabilities and for general working capital requirements.

Orbus' shares (TSX Venture: ORB.H) ended up a penny, or 66.67%, to C$0.025. Market capitalization is C$1.52 million.

Orbus Pharma is a Markham, Ont.-based pharmaceutical company.

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