Servoca wraps £5 million stock sale; Nayarit deal fully subscribed; Landkom to raise £4.8 million

By Stephanie N. Rotondo

Portland, Ore., March 6 - Servoca plc announced Friday that it had completed a £5 million private placement of stock, according to a press release.

Meanwhile, Nayarit Gold Inc., a Canadian mining company, gave new details about a C$10 million placement originally announced on Thursday. The company said its brokered deal was fully subscribed.

Landkom International plc said it was looking to raise nearly £5 million by issuing 40 million ordinary shares. Proceeds will be used to for general working capital.

Rex Minerals Ltd. will raise A$5.51 million in a two-tranche stock sale, the company said. The first tranche is expected to close March 13, and the second will come after the company receives shareholder approval, expected April 22.

Servoca wraps placement

Servoca completed a £5 million placement of stock, the company announced Friday.

The company sold 62.5 million shares at 8p per share. Proceeds will be used, in part, to refill the company's coffers, which had declined on restructuring and cost-cutting costs.

"We are delighted to have raised significant funds in what continues to be a very difficult market," said Andrew Church, chief executive, in the release. "The proceeds will allow Servoca to continue its growth focused on its public sector markets.

"We have strengthened the board and rationalized the business, and I believe that Servoca now has a solid platform on which to build and deliver shareholder value and thus realize its full potential. We look to the future with confidence."

Servoca's equity (London: SVCA) closed at 10p.

Servoca is a Croydon, England-based holding company that engages in medical and educational recruitment.

Nayarit deal fully subscribed

Nayarit Gold's recently announced private placement of units is fully subscribed, according to a press release.

The Toronto-based gold exploration company announced on Thursday that it was looking to raise C$10 million by issuing up to 20 million units consisting of one common share and one-half share warrant at C$0.50 per unit. Whole warrants are exercisable at C$0.75 for two years.

Colin P. Sutherland, the company's president and CEO, said he believed the deal was "fairly priced."

"Obviously on a placement, especially in this environment, you go in with what you think is fair pricing," he told Prospect News. Given that the deal was fully subscribed, "that is a good testament to the quality of our company."

Also, Sutherland said the inclusion of warrants was not only an "alternative source for financing," but it also "sweetens the deal for participants."

As for the decision to enter the PIPE market, Sutherland said the company had historically had a "very strong retail following." But by working with Jennings Capital Inc. and BMO Capital Markets, the company was able to reach out to new institutional investors.

Settlement is expected on or about March 24.

Proceeds will be used to further exploration and development, as well as for general working capital.

Nayarit's stock (TSX: NYG) dropped 5 cents, or 7.69%, to C$0.60.

Landkom to raise £4.8 million

Landkom International is planning to raise £4.8 million through a private placement of stock.

The Isle of Man, England-based company will issue 40 million ordinary shares at 12p per share. Settlement is expected on March 11.

"We are delighted to have completed this fund raising in these challenging market conditions," said Richard Spinks, CEO, in a news release. "Landkom has a fundamentally strong position in Ukraine with its high quality infrastructure and asset base. This financing allows us to continue to move forward with confidence."

The placement represents 16.67% of the enlarged share capital of the company, the release stated.

Proceeds from the transaction will be used for operating purposes.

The company's stock (London: LKI) closed at 11.68p.

Landkom acquires land leases in Ukraine for growing crops for the bio fuel and food markets.

Rex plans stock offering

Mineral exploration company Rex Minerals announced in a press release that it has conditionally raised A$5.51 million through a private placement of stock.

The company plans to sell 13.77 million shares at A$0.40 per share. The deal will come in two equal tranches of A$2.76 million, with the first tranche issued on March 13 and the second coming following shareholder approval. The company hopes to secure approval at a general meeting on April 22.

Proceeds will be used for further exploration of the company's copper-gold-uranium prospects.

The company's stock (Australia: RXM) closed at A$0.425.

Rex Minerals is based in Ballarat West, Australia.

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