CuDeco to privately sell stock; Animas Resources upsizes placement; Gold Hawk wraps units sale

By Stephanie N. Rotondo

Portland, Ore., June 3 - The mining sector dominated the private placement market Wednesday, with CuDeco Ltd. bringing the largest deal.

CuDeco said it was planning to raise A$42.5 million via a private placement of stock. The company also said it would offer a share purchase plan for an additional A$10 million.

Meanwhile, Animas Resources Ltd. increased its non-brokered private placement of units by 25%. The company said the upsizing was due to increased demand for the financing, which is fully subscribed.

Also, Gold Hawk Resources Inc. said it settled a C$1.25 million placement of units. Funds will be used in part to aid in restarting production at one of the company's mining properties.

Away from the mining sector, Amlin plc, a Lloyd's of London insurer, announced a plan to raise £6.61 million. The company will sell stock to raise the funds, which will then be used for a planned acquisition.

CuDeco to sell stock

CuDeco said it would raise up to A$42.5 million via a private placement of shares, according to a press release.

The company will issue the shares at A$2.50 per share.

Additionally, the company said it would raise another A$10 million through a share purchase plan. CuDeco will sell 4 million common shares under the plan, also at A$2.50 per share.

Proceeds from the equity financings will be used to advance the company's Rocklands project.

"I am pleased to be able to announce this capital raising, one in which our existing shareholders will be able to participate to a significant extent," said Wayne McCrae, chairman, in the release. "On completion of the offers, the funds will assist with mine development costs at Rocklands, including procurement of plant, equipment and infrastructure - of particular interest will be a number of quality used plant items that may be available from distressed projects. It will also put CuDeco in a strong position to negotiate project finance upon completion of the definitive feasibility study at Rocklands."

CuDeco's shares (Australia: CDU) increased one cent, or 0.32%, to A$3.10.

CuDeco is a Southport, Queensland-based mining company.

Animas upsizes placement

Vancouver, B.C.-based Animas Resources upsized a previously announced non-brokered private placement of units due to increased demand, the company said.

The deal, which originally priced on May 15 for C$1.5 million, was increased to C$2 million.

Under the terms of the transaction, Animas will sell approximately 5.7 million units at C$0.35 per unit. The units contain one common share and one half-share non-transferable warrant. Each warrant is good for one share at an exercise price of C$0.60 for one year and then at C$0.75 for the next year.

Proceeds will be used to expand a drill program at the company's Santa Gertrudis gold project in Latin America.

"A large portion of the financing went to a well connected Mexican businessman who is committed to the long-term development of the Santa Teresa Mining District," said Gregory E. McKelvey, president and CEO, in a press release. "The remaining portion of the financing was subscribed by a small group of industry professionals that have supported, and continue to support, the company's developments."

Animas' equity (TSX Venture: ANI) fell 2 pennies, or 3.33%, to C$0.58.

Animas Resources is a North American mineral resource company focused on acquisition and discovery in Latin America.

Gold Hawk wraps deal

Gold Hawk Resources completed a C$1.25 million private placement of units, according to a press release.

The company sold approximately 25 million units in the non-brokered placement. Each unit consisted of one common share and one 12-month share purchase warrant. The units sold at C$0.05 and each warrant is exercisable at C$0.07.

The deal was originally announced on May 20. Insiders participated in 25% of the placement.

The funds will support Gold Hawk's activities at its Coricancha Mine, as well as aid in planning for a new permanent tailings area at it Chinchan property. The company hopes to restart production at Coricancha later this year.

"We are very pleased to complete the private placement considering current market conditions," said Kevin Drover, Gold Hawk's president and CEO, in the release. "The closing of the private placement provides Gold Hawk with the funds to support the planning activities necessary to obtain re-start financing by this summer."

Gold Hawk's stock (TSX Venture: CGK) slipped C$0.005, or 7.14%, to C$0.065.

Gold Hawk Resources is a Vancouver, B.C.-based precious metals exploration and development company.

Amlin to issue new shares

Amlin announced it would sell approximately 23 million ordinary shares in its effort to raise £6.61 million.

The shares will sell at 28.125p per share. The placing represents about 5% of the company's issued ordinary share capital with institutional investors, according to a press release.

Funds from the transaction will be used in part for Amlin's acquisition of Fortis Corporate Insurance NV. Amlin will purchase the Netherlands-based property and casualty insurer for €350 million, the company said in a statement.

"This acquisition represents a step-change in the development of our organization and demonstrates the scope of our ambition to build a globally diversified insurance and reinsurance business focused in markets which require our specialist skills and have high barriers to entry," stated Charles Philipps, chief executive of Amlin, in the statement.

"The balance we will achieve both between catastrophe and non-catastrophe exposures, and between insurance and reinsurance risks will add further stability to our book of business and a foundation from which to target further growth. We are delighted to welcome our new colleagues to Amlin and look forward to bringing the best of our two organizations to bear in the European market," Philipps said.

"We are pleased that in Amlin we have found a strong new shareholder," commented Patrick Coene, chief executive of FCI. "Amlin has an excellent track record in its markets and A-level ratings from all of the large rating agencies. After a period of uncertainty, we are now again in a strong position to build our future. Amlin offers us financial strength, excellent underwriting expertise and strong risk management, which enables us to serve our clients and brokers even better. The vision and culture of Amlin matches ours almost perfectly. I would like to thank all our brokers and clients for their support over the recent months and our staff for their relentless efforts to keep our business strong. We have made great strides in reaching agreement with ex-Fortis group companies about the transition process and we are ready to start a new future with our new shareholder."

Amlin's equity (London: AML) gained 2.5p, or 0.74%, to close at 341.50p.

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