Merrex sells C$3.1 million; Pinnacle wraps $2.5 million; Fuda gets $3.4 million

By LLuvia Mares

New York, Dec. 21 ? Merrex Gold Inc. said it has settled a slightly upsized C$3.1 million private placement of shares. The deal priced Dec. 6 for C$3 million.

"We don't want to spend hard dollars on our projects so flow-through just worked better for us," said a company spokesperson. "At this moment I don't know whether the company will be looking for additional financing or acquisitions."

The company sold 4,769,185 flow-through common shares at C$0.65 each. It originally planned to sell up to 4,615,385 shares.

Blackmont Capital Inc. was the agent for the deal.

The company's stock (TSX Venture: MXI) closed at C$0.66 on Friday, up C$0.11 from Thursday's C$0.55 close.

Proceeds will be used for exploration.

Based in Halifax, N.S., Merrex Gold is a mineral resource exploration company concentrating on gold, zinc and nickel.

Pinnacle sells $2.5 million

In the technology sector, Pinnacle Data Systems, Inc. announced Friday it closed a $2.5 million private placement of stock.

The company sold 1.25 million shares at $2.00 per share and warrants to purchase an additional 375,000 shares at an exercise price of $3.03 per share, to a group of institutional investors. The warrants expire in five years.

Pinnacle's stock (AMEX: PNS) closed at $2.50 on Friday, down $0.25 from Thursday's $2.75 close.

Proceeds will be used to complete a pending acquisition.

Columbus, Ohio-based Pinnacle is an embedded computing technology provider.

Fuda gets $3.4 million

In other news, Fuda Faucet Works, Inc., formerly known as Capital Solutions I, Inc., completed a $3.4 million private placement of preferred stock.

"We are very pleased to have successfully completed our share exchange transaction and private placement financing," said Wu Yiting, company chief executive officer, in a press release.

"The new capital provides us with working capital to expand our operations to Africa and Russia, where we see a significant potential market for our products. Our manufacturing facility in China is strategically located in the Jiangxi Province, where there is an abundant supply of copper reserves, the single biggest raw material for our products, making us price competitive.

"We look forward to leveraging our cost advantages, as well as our technical expertise to compete in the global market," she added.

The company sold 3.09 million shares of series A preferred stock. Each preferred share is convertible into one common share, a conversion price of $1.10. The preferred stock will not pay dividends.

The investors also received warrants for 2,060,060 shares with a strike price of $1.80 and warrants for 4,121,212 with a strike price of $3.00. All of the warrants have a term of five years.

If Fuda's earnings before interest and taxes does not reach $0.22502 and $0.31287 in 2007 and 2008, respectively, the investors in the placement will receive up to 3 million series A preferred shares, depending on the amount of the shortfall. The warrant strike prices will also be reduced in that case.

Barron Partners, LP invested $3.1 million in the deal; Silver Rock I invested $175,000; and Eos Holdings invested $100,000.

The company's stock (OTCBB: CSNI) closed at $6.50 on Dec. 19, and did not see any activity Friday.

Shanda International Capital Investment Ltd. acted as agent.

The placement was conducted in connection with Fuda's acquisition of Moral Star BVI.

Based in Shangrao, China, Fuda produces brass faucets and related spouts and fittings.

Petaquilla takes in C$1.02 million

Petaquilla Minerals Ltd. settled the second tranche of a C$30 million non-brokered private placement of units, raising C$1,017,000. The deal priced on Oct. 25, and the company took in C$6,280,500 in the first tranche on Nov. 1.

The company sold 339,000 units in this tranche. In the first tranche, Petaquilla sold 2,093,500 units.

As previously reported, the company plans to sell a total of 10 million units at C$3.00 apiece. Each unit consists of one common share and one half-share warrant. Each whole warrant is exercisable for two years at C$3.50.

Petaquilla's stock (Toronto: PTQ) closed at C$3.00 on Friday, up C$0.07 from Thursday's C$2.93 close.

The compensation warrants have the same terms as the warrants offered in the placement.

The securities will have a four-month hold period.

Proceeds will be used to develop and increase capacity of the company's Molejon Gold project in Panama.

Vancouver, B.C.-based Petaquilla is an emerging gold producer scheduled to bring its Molejon Gold Project into production in 2008.

Bonaventure settles C$4.31 million

With the settlement of its C$4.31 private placement of units on Friday, Bonaventure Enterprises Inc. said it plans to start drilling at one of its projects.

"The financial market conditions did not permit Bonaventure to obtain more funding at this time," said Jean Lafleur, company president and chief executive officer, in a press release.

"Our strategy was to minimize shareholder dilution, and capitalize on the significant uranium potential of K9. Now with funds secured, Bonaventure will be able to proceed as originally planned with the K9 drilling to follow up the encouraging surface sampling results reported by the company on Nov. 12."

The company sold 8,921,600 flow-through units at C$0.45 each for C$4,014,720.

Each unit consists of one flow-through share and one warrant. Each 18-month warrant is exercisable at C$1.05 for the first year and C$2.00 thereafter.

It also sold 745,000 non-flow-through units at C$0.40 apiece, raising C$298,000.

Each unit consists of one common share and one half share warrant. Each whole warrant is exercisable at C$0.65 for 18 months.

Salman Partners Inc. was the agent.

Proceeds will be used for exploration and development and working capital.

Based in Vancouver, B.C., Bonaventure is a gold exploration company with projects in Nevada.

Radisson to raise C$1 million

Radisson Mining Resources Inc. expects to use the C$1 million in proceeds gained from its planned non-brokered private placement of shares for exploration.

The company will sell 2.5 million flow-through common shares at C$0.40 each. Insiders may not buy more than 50% of the shares.

The company's stock (TSX Venture: RDS) closed at C$0.32 on Friday, up C$0.5 from Thursday's C$0.27 close.

Based in Saskatoon, Sask., Great Western Minerals is a gold, uranium and diamond exploration company.

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