Creston Moly raises funds to close deficit; Bowmore wraps offering; Kiwara offers sale details

Portland, Ore., July 2 - Mining and exploration companies were the dominant force in Thursday's private placement marketplace.

Creston Moly Corp., a junior mining company, announced a plan to raise C$3 million. According to an unnamed source close to the proceedings, the company needs the funds to feed a working capital deficit.

Meanwhile, Bowmore Exploration Ltd. said it took in C$4.2 million. The company sold equity units in the placement and a single investor purchased more than half of the units.

Kiwara plc released new details regarding a private placement originally announced in April. The company hopes to take in $6 million in the deal with International Finance Corp.

African Minerals Ltd. sold more than $100 million worth of stock, the company said. Proceeds will be used to fund the company's projects in Sierra Leone.

Prospect News will not be published Monday due to the Fourth of July holiday.

Creston raises funds to feed deficit

Creston Moly plans to raise C$3 million via a private placement of common share units.

The company will sell 30 million units containing one common share and one warrant. Each unit will sell at C$0.10 per unit and each whole two-year warrant is exercisable at C$0.15.

According to a source familiar with the deal, the company elected to raise funds in the private placement market because it needed money to "deal with" a working capital deficit.

"So [the company is] between a rock and a hard place," the source said.

A debt financing was out of the question, the source noted, as the company is not generating income to support such transactions.

"This is what people were willing to buy," the source said.

This is not the first time Creston has entered the private placement market. In May 2007, the company raised C$40 million via a bought deal.

"That was when [Creston] was popular," the source quipped.

Creston's equity (TSX Venture: CMS) fell 2 cents, or 16.67%, to C$0.10. Market capitalization is C$12.2 million.

Creston Moly is a Vancouver, B.C.-based mineral exploration company.

Bowmore closes on C$4.2 million

Bowmore Exploration took in C$4.2 million in a private placement of units, according to a press release.

Under the terms of the non-brokered deal, the Surrey, B.C.-based company issued 21 million units consisting of one common share and one half-share warrant. The units sold at C$0.20 per unit and each whole warrant is exercisable at C$0.35 for four years.

Pursuant to a strategic partnership agreement signed May 19, Osisko Mining Corp. purchased C$3 million of the units. Upon closing of the transaction, Osisko will own 15 million shares, or 39.1% of outstanding stock, on a non-diluted basis and 22.5 million shares, or 40.4%, on a fully diluted basis.

"We are extremely pleased to have Osisko Mining Corp. as our major shareholder and strategic partner," commented Paul Dumas, president and chief executive officer, in the release. "As previously stated we have an established relationship with the executives of Osisko and we respect their mine finding capabilities and proven track record. We look forward in continuing to build this relationship with Osisko and its executives as we develop our business.

"This partnership will provide us with access to a broad range of resources, contacts and knowledge that will benefit Bowmore and its shareholders," Dumas continued. "This alliance will create synergies which will significantly increase the chances of discovery while lowering exploration risk for both parties. We would also like to welcome Sean Roosen [Osisko's president and CEO] to the board of directors and look forward in working together. The contribution of Osisko's executive Robert Wares and recently appointed Roosen is greatly appreciated has they bring tremendous depth in terms of knowledge and experience to Bowmore."

Proceeds from the fundraising will go toward exploring the company's Santa Elvira property in Mexico, among other things.

Bowmore's shares (TSX Venture: BOW) gained 6 cents, or 8.70%, to C$0.75. Market capitalization is C$12.4 million.

Kiwara gives new details of placement

Surrey, England-based Kiwara priced a $6 million private placement of ordinary stock.

The deal was first announced April 29.

The company will issue approximately 19.5 million shares at 18.697p per share to International Finance Corp. IFC will also receive one warrant per share, exercisable at 37p for three years.

"We are naturally delighted that the IFC have taken such a significant stake in our rapidly developing Zambian focused base metals company," said Colin Bird, chairman, in a press release. "The investment will form the core of the funds to consolidate our Kalumbila copper deposit and investigate the size potential of our Kawako nickel discovery. We look forward to working with the IFC."

"IFC's investment in Kiwara demonstrates our commitment to supporting projects in regions where economic growth is most needed and that are environmentally and socially sustainable," added Saleem Karimjee, IFC's country manager for Southern Africa. "IFC's investment and Kiwara's potential participation in IFC's program to support small and medium enterprises linked to mining is the start of a partnership will increase economic growth and create more opportunities for Zambians."

Kiwara's stock (London: KIW) closed at 38p. Market capitalization is £63.6 million.

African Minerals wraps stock sale

African Minerals brought in £63.85 million, or $105.3 million, after privately placing approximately 25.54 million common shares.

The company sold the shares at 250p per share.

"We are delighted with the support that premier institutional investors in North America and the United Kingdom have given the company," said Frank Timis, executive chairman, in a statement. "Their commitment fully endorses the quality of the company's world class iron ore assets and our experienced executive and operational teams.

"The proceeds will allow us to develop the magnetite iron ore resource towards our target of 10 billion tonnes and fast track the Tonkolili definitive feasibility study, to create substantial value for our shareholders," Timis continued. "In addition we will undertake engineering work on the infrastructure required to support our iron ore projects.

"This is a very large step towards us realizing the full potential of our world class iron ore deposit at Tonkolili and the future infrastructure rehabilitation and construction work will in due course provide positive benefits to the local community and the economy of Sierra Leone," he concluded.

African's equity (London: AMI) ended at 233.19p. Market capitalization is £451 million.

African Minerals is a London-based mineral exploration company with interests in Sierra Leone, West Africa.

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