Magellan aims for C$20 million; Trevali deal oversubscribed; Argosy seeks acquisition dollars

By Stephanie N. Rotondo

Portland, Ore., Dec. 11 - Once again, the mineral and resource sectors came out if full force in Friday's private placement market.

Magellan Minerals Ltd. announced a C$20 million private placement of subscription receipts and equity units. According to the company's top executive, the deal has generated positive investor response, even though the timing for the financing was not ideal.

Meanwhile, Trevali Resources Corp. also experienced strong investor interest in its C$7 million private placement of units. The company said the deal closed Friday, including a fully subscribed greenshoe.

Argosy Energy Inc. is seeking C$7 million to cover acquisition costs, the company said in a press release announcing the private placement of flow-through and common share units. Funds will also be used for exploration activities.

Also, Aldridge Minerals Inc. is planning a C$5 million private placement of units, according to a press release. The company did not specify what proceeds would be used for.

In news from across the Pond, ValiRX plc said it inked an agreement with U.S.-based Dutchess Opportunity Fund, II, LP for a two-year equity line of credit. The company can draw down up to £3 million under the facility.

Magellan aims for C$20 million

Magellan Minerals will conduct a private placement of up to C$20 million, selling units and subscription receipts.

The company will issue 17.14 million units at C$0.70 per unit. The units will consist of one common share and one half-share warrant, with whole warrants exercisable at C$1.00 for one year.

In addition, the company will sell 11.43 million subscription receipts at C$0.70 each. The subscriptions will automatically convert into units once Magellan has completed its planned acquisition of the Creporizinho gold mine in Brazil.

Alan Carter, president and chief executive officer, told Prospect News that, while investor response has been "positive...I would have liked a higher price."

"It's a large financing and the timing is not ideal" in terms of the time of year, which factored into the deal's terms, he added. He also said the recently declining cost of gold also played a role.

But Carter noted that Magellan needed the funding now in order to complete its acquisition.

Settlement is expected by Dec. 22.

Magellan's stock (TSX Venture: MNM) fell 13 cents, or 14.61%, to C$0.76. Market capitalization is C$27.6 million.

Magellan Minerals is a Vancouver, B.C.-based gold and bauxite exploration company.

Trevali placement oversubscribed

Trevali Resources closed an oversubscribed private placement of units, the company announced, taking in proceeds of C$7.7 million.

The deal originally priced at C$7 million on Nov. 5 and also included a C$700,000 greenshoe.

The Vancouver, B.C.-based mining company issued approximately 11 million units at C$0.70 per unit. The units contained one common share and one half-share warrant. Whole warrants are exercisable at C$1.15 for two years.

"[The financing] was obviously very well received and oversubscribed," said Steve Stakiw, manager of corporate communications. "There were more people interested than there was positions available.

"That's a nice situation to be in," he quipped.

However, Stakiw said that there was no current plans to do another financing for those interested parties left out of this deal.

"We're in good shape for quite some time," he said of the capital raise, noting that the funding would not only cover exploration and development of the Santander silver-lead-zinc project in Peru, but would also fulfill the budgetary requirements set out in its Toronto Stock Exchange listing application.

Trevali's shares (Pink Sheets: TREVF) ended unchanged at C$0.9453.

Argosy seeks acquisition dollars

Argosy Energy is looking for C$7 million to fund its planned acquisition of Radius Resources Corp.'s outstanding stock.

As such, the company intends to privately place 1.75 million flow-through units at C$2.00 per unit. The units will hold one common share and one half-share warrant.

Additionally, the company will sell approximately 1.94 million common share units at C$1.80 per unit. Those units will consist of one common share and one half-share warrant.

Whole warrants from both portions are exercisable at C$2.25 for 18 months.

Calls seeking comment were not returned Friday.

Argosy's equity (Toronto: GSY) dipped 3 cents, or 2.36%, to C$1.24. Market capitalization is C$13.5 million.

Argosy Energy is a Calgary, Alta.-based junior oil and gas company.

Aldridge to issue units

Aldridge Minerals announced a C$5 million private placement of units.

According to the terms of the non-brokered deal, the company will sell 5 million units at C$1.00 per unit. The units will contain one common share and one warrant. The warrants are exercisable at C$1.50 for two years.

Calls seeking comment were not returned Friday.

Aldridge's stock (TSX Venture: AGM) declined a penny, or 0.94%, to C$1.05. Market capitalization is C$23.9 million.

Aldridge Minerals is a Vancouver, B.C.-based gold and base metals exploration company.

ValiRX gets credit line

ValiRX, a London-based developer of diagnostics and therapeutics for the treatment of cancer, secured a £3 million equity line of credit with Dutchess Opportunity Fund, II, LP.

The company will issue ordinary shares to Dutchess at a 10% discount to market price. The draws can be made in tranches of up to £100,000 for two years.

"This funding will allow the company to follow opportunities in a controlled and timely manner with the aim of increasing the company's IP and asset value," according to a press release.

"We are extremely pleased to have attracted a respected new institutional investor to the ValiRx growth story," said Dr. Satu Vainikka, CEO, in the release. "ValiRx's goal in securing the ELOC facility is to have in place a facility that will enable the company to raise capital efficiently at higher valuations, as it develops the business on to the next stage and communicates positive progress. Having observed the successful use of the ELOC facility by a number of other AIM companies, we are confident that this facility will provide a useful funding instrument for ValiRx."

Added Douglas Leighton, managing partner of Dutchess: "We are pleased to have the opportunity to fund the company with its growth efforts while they continue to make strides in their developments. We look forward to a long relationship."

ValiRX's equity (London: VAL) closed at 1.38p. Market capitalization is £2.11 million.

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