Mega Uranium wraps C$31.53 million unit deal; Diamondex negotiates C$15.05 million PIPE

By Sheri Kasprzak

New York, April 21 - PIPE activity on Friday was headed up by two rather large Canadian offerings.

Mega Uranium Ltd. concluded a C$31,531,600 placement it announced earlier this month.

The oversubscribed offering and higher uranium prices sent the company's stock up 1.83%, or 16 cents, to close at $8.90 (TSX Venture: MGA).

In the non-brokered deal, Mega issued 3,709,600 units at C$8.50 each. The units are comprised of one share and one half-share warrant with each whole warrant exercisable at C$12.00.

The deal priced April 6 as a C$17 million offering of 2 million units and was upsized to C$29.75 million units on April 11.

"With the proceeds of this financing, the impending closing of our Hindmarsh Resources Ltd. acquisition, and our existing cash, Mega will have approximately C$50 million available which will allow us to continue our aggressive acquisition and exploration strategy," said Sheldon Inwentash, the company's chief executive officer, in a statement.

Toronto, Ont.-based Mega is a uranium exploration company focused on properties in Australia, Argentina, Mongolia and Canada.

Elsewhere in Canada, Diamondex Resources Ltd. priced a C$15.05 million offering of 21.5 million units.

The units consist of one share and one half-share warrant. The whole warrants are exercisable at C$0.85 each for two years.

A syndicate of underwriters led by Genuity Capital Markets has a greenshoe for up to 2.15 million additional units.

The stock advanced by a penny on Friday after the deal was announced late in the session to settle at C$0.68 (TSX Venture: DSP).

The deal is scheduled to close May 3.

The proceeds will be used for exploration on the company's Lena West, Brodeur and Pegasus properties, as well as for general corporate purposes.

Vancouver, B.C.-based Diamondex is a diamond exploration company.

Interactive raises $1 million

Looking to the U.S. PIPE market, which was virtually deserted on Friday, Interactive Television Networks, Inc. settled a $1 million convertible debenture offering with Pentagon Bernini Fund, Ltd.

The 16% debentures are convertible into common shares at $2.00 each. The debentures are due in quarterly arrears payable on the last day of each month beginning July 31, 2006 and continuing January 2007, April 2007, July 2007 and October 2007.

Pentagon Bernini also received warrants for 529,400 shares, exercisable at $3.00 each.

The proceeds will be used for content and for working capital.

Pentagon Bernini also holds Interactive's 17% convertible debentures.

The closing was announced Friday afternoon, and Interactive's stock lost 35 cents, or 8.14%, to end the day at $3.95 (OTCBB: ITTV).

Located in Irvine, Calif., Interactive develops and manages television programming over the internet.

In the broader market Friday, one sellsider said activity ground to a halt because it's the end of the week and stocks ended mixed.

"There's really nothing to report," he said. "I'd say it's just Friday and there's really not that many [issuers] with things to price."

The Dow Jones Industrial Average gained 4.56 to end at 11,347.45; the Nasdaq composite index dipped 19.69 to conclude at 2,342.86 and the Standard & Poor's 500 composite index ended off 0.18 at 1,311.28.

Pele Mountain's C$1.89 million deal

Moving back to Canada, Pele Mountain Resources Ltd. closed the first tranche of a C$1.89 million private for C$690,000.

In the first tranche, the company issued 1,725,000 flow-through units at C$0.40 each to seven arm's-length investors.

The units are comprised of one share and one half-share warrant. Each whole series X warrant is exercisable at C$0.50 through April 21, 2007.

The completion of this tranche was announced late Friday, and the stock dropped half a cent to end at C$0.36 (TSX Venture: GEM).

The second tranche, scheduled to close April 26, will include up to 3 million additional units.

Proceeds will be used for exploration and development on the company's Canadian properties.

Based in Toronto, Ont., Pele Mountain is a gold and base metals exploration company.

O2Diesel stock gain tops 15%

A day after planning two private placements totaling $6.5 million, O2Diesel Corp.'s stock jumped 15.24%, or 25 cents, to end at $1.89 (Amex: OTD). In after-hours trading, the stock gained another 4 cents.

On Thursday, when the deals were announced, the company's stock fell 13.23%, or 25 cents, to close at $1.64, gaining a penny in after-hours trading.

In one of the placements, UBS AG agreed to buy shares at $0.75 each and received warrants for 2,666,667 shares, exercisable at $0.825 each.

In the other, Standard Bank plc will buy shares at $0.75 each. Standard Bank will also receive warrants for 1,666,667 shares, exercisable at $0.825 each for five years.

The placement was announced on the same day O2Diesel released its year-end earnings report.

The two placements are being conducted because, according to the earnings report, O2Diesel will require additional equity to continue as a going concern.

Based in Newark, Del., O2Diesel develops cleaner-burning diesel fuel.

Mart Resources stock advances

Another energy-related issuer's stock made gains on Friday after pricing a C$29 million stock deal.

Mart Resources, Inc.'s stock climbed 3 cents, or 3.16%, to settle at C$0.98 (TSX Venture: MMT).

On Thursday, the stock dropped 3 cents to end at C$0.95.

The company intends to sell 29 million shares.

The proceeds will be used to fund two drilling rigs and to fund drilling on the company's Nigerian oil and gas fields.

Calgary, Alta.-based Mart is an oil and natural gas exploration company with projects in Africa.

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