Harry Winston raises C$75 million in deal; Semcan, Minemakers sell stock; Canadian Phoenix upsizes

By Kenneth Lim

Boston, March 10 - Harry Winston Diamond Corp. said a C$75 million stock offering will help it to secure a new credit facility to develop an underground mine.

Meanwhile, Semcan Inc. said it plans to sell C$10 million of share-and-warrant units in a private placement to fund an acquisition.

Canadian Phoenix Resources Corp. said it upsized its previously announced non-brokered private placement of stock and warrant units to C$35 million, from an initial C$25 million.

In Australia, Minemakers Ltd. said it completed an oversubscribed placement of shares for A$11.55 million.

Harry Winston raises for debt

Harry Winston, a Toronto-based specialist diamond company, said it will sell C$75 million worth of common stock in a non-brokered private deal.

The sale comprises 3 million common shares at C$25 apiece. Harry Winston stock (TSX: HW) closed at C$25.19 on Monday, higher by C$0.26 or 1.04%.

Noting that the placement represents a 5% dilution for existing shareholders, the company said in a statement that the transaction was necessary for the company to "pursue a new credit facility...on satisfactory terms and conditions."

"Once completed, the new facility, together with proceeds from the abovementioned transaction and general cash-flow, are expected to fund the corporation's portion of the previously announced underground mine plan at the Diavik Diamond Mine," the company said. "Diamond production from underground, scheduled to begin in 2009 and continue beyond 2020, will add significant NPV [net present value] to the project as well as enhance mine life."

Harry Winston owns 40% of the Diavik mine, with Rio Tinto plc controlling the rest. Harry Winston chief executive Robert Gannicott was recently reported to have said that the company is looking at acquisition opportunities.

Harry Winston Inc., the company's diamond jewelry and watch retailer unit, also recently completed a separate US$250 million five-year credit facility for the retail division's operations.

Semcan sell C$10 million

Semcan Inc. said it will sell C$10 million of share-and-warrant units through a private placement.

The placement will involve units of one share and one half-share warrant at C$0.95 per unit. Each whole warrant will expire in 18 months with a strike price at C$1.35. Semcan stock (TSX: STT) rose 5% or C$0.05 to close at C$1.05 on Monday.

Semcan, a Toronto-based holding company that focuses on acquiring companies in the industrial and distribution sectors, said M Partners Inc. will be the lead agent of the deal.

The company said in a press release that the deal will be used to fund its previously announced acquisition of Naston Ltd.

Naston, is a Surrey, England-based water and waste treatment engineering specialist.

Semcan said on Feb. 14 that it will buy Naston for £5.2 million, or about $10.2 million, with completion expected in early April.

"This acquisition is fundamental to our strategy. It elevates Semcan to an international provider of environmental services with emphasis on water management," Semcan chairman and chief executive Phil Jamieson said at the time. "We are comfortable Naston will add in excess of its 2007 revenues of C$20.9 million annually to Semcan's revenues and exceed its 2007 EBITDA of C$2.01 million."

Canadian Phoenix enlarges deal

Canadian Phoenix said it has upsized a non-brokered placement of units to C$35 million, from the original C$25 million.

The company now plans to sell 280 million units at C$0.125 each. The initial plan was for 200 million units at the same price. Each unit comprises one common share and one warrant, which is exercisable at C$0.15 for two years.

Canadian Phoenix stock (TSX: CPH) closed at C$0.14 on Monday, lower by 12.5% or C$0.02.

Canadian Phoenix, a Calgary, Alta.-based junior oil and gas company, said it will use the proceeds to acquire a 50.1% interst in Serrano Energy Ltd., for development, acquisitions and working capital.

Minemakers completes sale

Australia's Minemakers said it raised A$11.55 million from a sale of shares to a group of investors.

The sale consisted of 7.7 million common shares at A$1.50 apiece. Minemakers stock (ASX: MAK) closed at A$1.70 on Monday, up by 0.89% or A$0.015.

Minemakers said the agent, BBY Ltd., placed the shares with "institutional and sophisticated investors."

"The placement...was heavily oversubscribed," the company said in a statement. "The investors include offshore and domestic institutional funds and high net worth clients of BBY Ltd."

Minemakers, a West Perth, Western Australia-based mineral exploration company, said it will use the proceeds to develop projects, buy capital items and provide working capital.

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