Aquiline lands investor; Advanced Life ups loan; Potash One plans flow-through deal; Kodiak yanks offer

By Kenneth Lim

Aquiline Resources Inc. closed a C$7.39 million private offering of stock and warrant units, and welcomed a new institutional investor.

Advanced Life Sciences Holdings, Inc. said it enlarged and extended a credit agreement with Leaders Bank to provide non-dilutive capital.

Potash One Inc. said it plans to raise C$10 million of flow-through capital through a private placement to fund exploration.

Meanwhile, Kodiak Energy, Inc. canceled a planned C$5 million private share placement in response to market conditions.

Aquiline sees Pan American support

Aquiline Resources said it closed a C$7.39 million stock-and-warrant placement with key support from new investor Pan American Silver Corp.

The placement, which comprised about 3.7 million units, formed the first tranche of a C$10 million offering. Pan American took 1.5 million units and may increase its interest further. The second tranche is slated to close the week of Oct. 27.

The total offering consists of 5 million units of one common share and one warrant at C$2.00 per unit. The warrants are exercisable at C$2.50 for three years.

Aquiline common stock (TSX: AQI) fell 10.45% or C$0.14 on Thursday to close at C$1.20.

Proceeds will be used for exploration and development.

Toronto-based Aquiline is a gold and silver exploration and development company.

"We are pleased to close the first tranche of this fully subscribed financing, and to welcome Pan American Silver as a shareholder," Aquiline president and chief executive Marc Henderson said in a statement. "We also appreciate all our shareholders who have supported us in these adverse conditions, and we are responding by significantly reducing our operating expenditures until such time as capital markets visibility improves. With the completion of the scoping study announced Sept. 18, 2008, we have largely completed the in-fill drilling at the high grade Loma de La Plata deposit and consequently have reduced the number of active drill rigs at Navidad from four to one. We plan to release further details of our exploration and development plans next week when the balance of the financing closes."

Advanced Life increases loan

Advanced Life Sciences increased its line of credit with Leaders Bank to $10 million from $4 million and pushed the maturity date further out by one year to Jan. 1, 2011.

Borrowings under the credit line will bear interest at 8.5%.

Leaders Bank also received warrants for 65,000 common shares, exercisable at $1.00 for five years. Advanced Life Sciences common stock (Nasdaq: ADLS) gained 2.63% or $0.01 on Thursday to close at $0.39.

Advanced Life Sciences is a biopharmaceutical company based in Woodbridge, Ill.

"We are pleased to complete the debt facility expansion and extension with Leaders Bank," Advanced Life Sciences president and chief financial officer John L. Flavin said in a statement. "This financing instrument allows the company to achieve its corporate objectives in a non-dilutive manner."

Potash One eyes C$10 million

Potash One plans to offer C$10 million of shares through a non-brokered private placement.

The company will sell 8 million flow-through common shares at C$1.25 apiece. Potash One common stock (TSX: KCL) closed at C$0.86 on Thursday, lower by 6.52% or C$0.06.

Proceeds will be used for exploration.

Vancouver, B.C.-based Potash One is a potash company engaged in the identification, acquisition, exploration and development of advanced resource properties.

Kodiak pulls deal

Kodiak Energy called off a C$5 million private share placement, citing negative market conditions.

The deal priced Oct. 14.

Kodiak, a Calgary, Alta.-based oil and gas exploration company, planned to use the proceeds for exploration and working capital.

In a press release, the company said it changed its mind because of "unexpected extreme fluctuation in venture markets resulting in overall negative conditions, and specifically the downturn in commodity prices and compounded by Canadian/U.S. dollar exchange rates during these past few weeks."

"As Kodiak's projects are not faced with short-term expiries, we reviewed the terms and conditions offered, however they were not deemed acceptable under the current conditions," Kodiak president and chief executive Bill Tighe said in the press release. "We intend on evaluating conditions and when there is stability, review our needs, commodity prices and decide what opportunities are appropriate at that time. We are in an enviable position compared to other juniors in this respect. We will develop those assets when capital is available that is not inappropriately dilutive to the existing shareholder base. In the near term we continue to evaluate other opportunities to add value to the corporation."

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