Petroceltic secures £27.47 million; Timminco raises C$15 million; Amorfix concludes unit sale

By Stephanie N. Rotondo

Portland, Ore., April 30 - It was a day of concluding deals in the private placement market on Thursday.

Petroceltic International plc said it completed a £27.47 million stock deal. The transaction was oversubscribed, according to a press release.

Timminco Ltd. also wrapped a stock sale, selling more than 7 million new shares to its parent company AMG Advanced Metallurgical Group NV.

Amorfix Life Sciences Ltd. completed a deal that was announced April 24. The non-brokered placement of units originally priced at C$3 million, but the company managed to raise C$3.35 million.

Among other issuers looking to raise funds, Spider Resources Inc. announced its plan to raise C$3.94 million via a stock placement.

Petroceltic takes in £27.47 million

Petroceltic International settled a £27.47 million private placement of stock, according to a press release.

The Dublin-based company sold approximately 392.5 million ordinary shares at 7p per share.

"The funds raised through this placing give the company the financial flexibility to underpin the 2009 Algerian drilling program and at the same time to put in place the financial commitments needed to secure the appraisal and drilling program planned for Italy in 2010/2011," commented Brian O'Cathain, chief executive of Petroceltic, in the release. "We were particularly pleased that the placing was oversubscribed, despite the difficult market conditions, and we would like to thank our existing and new shareholders for their continued support."

Petroceltic's equity (London: PCI) closed at 8.91p. Market capitalization is £86.3 million.

Petroceltic International is an international oil and gas exploration company.

Timminco raises C$15 million

Timminco, a subsidiary of AMG Advanced Metallurgical Group NV, completed a C$15 million placement of equity.

The 7.04 million new shares were sold to the parent company at C$2.02 per share. The purchase of the new shares increased AMG's stake in the company to 63.9 million shares, or 53.8%.

"The supervisory board continues to believe in the value proposition that Timminco offers its customers," said Jonathan Costello, director of corporate communications for AMG, in an interview. He added that, due to current market conditions, "the need for capital was evident."

Calls to Timminco seeking comment were not returned.

Timminco's stock (Toronto: TIM) gained 9 cents, or 5.33%, to C$1.78. Market capitalization is C$198 milion.

Timminco is a Toronto-based producer of alloy magnesium, silicon metal and specialty ferrosilicon, calcium and strontium alloys.

Amorfix concludes unit sale

Amorfix Life Sciences also wrapped a deal, the company said Thursday.

The Toronto-based company first announced the non-brokered placement on April 24. The common share unit sale originally priced at C$3 million. However, the company said it raised C$3.35 million through the offering.

The company sold approximately 5.15 million units consisting of one common share and one half-share warrant at C$0.65 per unit. Each whole two-year warrant is exercisable at C$1.00.

"It's hard to do any financing in this environment, so we are pleased that we have shareholder support," James Parsons, chief financial officer, said in an interview with Prospect News on Friday. "We had strong shareholder support for the company who indicated interest in investing more money in the company."

Proceeds from the fundraising will be used to further advance the development and marketing of the company's diagnostic and therapeutic programs.

Amorfix's stock (Toronto: AMF) moved up 3 cents, or 4.84%, to C$0.65. Market capitalization is C$28.5 million.

Amorfix Life Sciences develops treatments for brain-wasting diseases, such as Alzheimer's disease.

Citigold secures A$5.76 million

Citigold concluded a A$5.76 million stock placement, the company said in a press release.

Under the terms of the deal, the Milton, Australia-based company sold approximately 26.9 million ordinary shares. In addition, investors received approximately 6.13 million and 760,000 unlisted options, exercisable at A$0.27 and A$0.23, respectively.

Investors also received approximately 3.7 million free bonus shares.

The company said it would use proceeds to further its gold exploration projects.

Citigold's shares (Australia: CTO) closed at A$0.18.

Spider plans best-efforts placement

Spider Resources is planning a best-efforts private placement of shares, the company said.

The company will issue 78.75 million common shares to raise C$3.94 million.

Neil Novak, Spider's president and chief executive officer, said the funds were being raised for an exploration project. More specifically, the money will go toward projects in the McFauld's Lake area, which Novak said was a joint venture with KWG Resources Inc.

"I would like it to be at a much higher price, but it has to be within the context of the market," Novak told Prospect News regarding the terms of the deal. He noted that the shares would sell at C$0.05, which was a slight premium to the company's current trading level.

Spider's equity (TSX Venture: SPQ) was unchanged at C$0.035. Market capitalization is C$10.9 million.

Spider Resources is a Toronto-based diamond exploration company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.