Dynasty ups issue to C$15 million; Energizer closes sale; Breakwater wants exploration funding

By Stephanie N. Rotondo

Portland, Ore., March 17 - Canadian resource companies continued to be the top issuers in Wednesday's PIPE marketplace.

Dynasty Metals & Mining Inc. announced a C$10 million private placement of units. Just a few hours later, the offering was upsized to C$15 million and, according to a company spokesperson, the deal will result in "very little dilution."

Aldrin Resource Corp. also increased a previously announced deal. The company now intends to raise C$7 million, versus the original pricing of C$5 million, from a private placement of units.

Meanwhile, Energizer Resources Inc. took in $6.5 million from a private placement of units. The deal included brokered and non-brokered tranches.

Also, Breakwater Resources Ltd. hopes to raise exploration funds via a C$5 million private placement of equity.

NexMed Inc. meantime announced it had completed a $4 million private placement of convertible notes. The deal was intended to bolster the company's cash position.

Dynasty upsizes unit offering

Dynasty Metals & Mining intends to raise C$15 million via a private placement of units, according to a press release.

The deal originally priced on Wednesday at C$10 million and was quickly upsized.

The company will issue 3.75 million of the units at C$4.00 each. The units will hold one common share and one half-share warrant. Whole warrants are exercisable at C$5.00 for one year.

Murray Oliver, director of corporate development, said in an interview with Prospect News that the financing arose out of demand for the company's equity. He said that Dynasty has faced many challenges at its Ecuadorian properties, but that "we've been able to navigate the waters better than anybody down there."

Oliver also noted that the company was very pleased with the terms of the financing.

"It's a market deal," he said. "And it's very little dilution."

Oliver added that the company has been "very select in our share structure. This is the first time ever that we have given a half-warrant."

The proceeds from the transaction will be used for development of the Ecuador properties, for property acquisitions and general corporate purposes. Settlement is expected by April 1.

Dynasty's stock (Toronto: DMM) dropped 25 cents, or 5.63%, to C$4.19. Market capitalization is C$158 million.

Dynasty Metals & Mining is a Vancouver, B.C.-based mining company.

Aldrin lifts deal

Aldrin Resource announced it had increased the amount of a previously amount private placement of units to C$7 million from C$5 million.

The deal originally priced March 11.

Aldrin will now sell 14 million units at C$0.50 per unit. The units will consist of one common share and one half-share warrant. Whole warrants are exercisable at C$0.75 for 18 months.

Johnathan More, Aldrin's president and chief executive officer, said the increase in the deal was simply because "demand is huge."

"It's so oversubscribed, it's crazy," he said. "When people are giving you money like that, you grab it.

"C$5 million is good, but C$7 is so much better," he added.

More noted that the company had always expected to put at least C$5 million "into the ground this summer," but now expects that figure to increase to C$6 million.

However, More said that the company does not expect to raise any more funds due to dilution concerns.

Proceeds will be used to complete drilling and exploration on Aldrin's Yukon Territory properties, for future acquisitions and working capital. More said that exploration in the Yukon is expected to increase this year, hearing that as much as C$180 million total will be spent in that area.

Settlement is expected sometime next week, according to More.

Aldrin's shares (TSX Venture: ALN) ended unchanged at C$0.67. Market capitalization is C$14.5 million.

Aldrin Resource is a Vancouver, B.C.-based resource exploration company.

Energizer settles unit sale

Energizer Resources wrapped a private placement of units, taking in $6.5 million.

The deal was both brokered and non-brokered. Consolidated Thompson Iron Mines Ltd., along with a private investor, subscribed for total gross proceeds of $2.15 million in the non-brokered portion. Dundee Corp., together with a merchant banking firm and certain other purchasers, invested $4.35 million in the brokered tranche.

Energizer sold approximately 21.66 million units total at $0.30 each. The units held one common share and one warrant. The warrants are exercisable at $0.50 for three years.

"The net proceeds of this financing will be used to further the company's 2010 exploration program on its Green Giant vanadium project in Madagascar, including completion of a resource definition drill program, metallurgical testing, and for general corporate purposes," Energizer said in a press release.

Energizer's equity (OTCBB: URST) fell a penny, or 1.23%, to $0.40. Market capitalization is $35.9 million.

Energizer Resources is a Toronto-based metal and mineral exploration company.

Breakwater wants exploration funds

Breakwater Resources is seeking C$5 million in exploration funding from a private placement of equity, the company said in a press release.

The Toronto-based company will sell approximately 11.11 million flow-through common shares at C$0.45 each on a bought-deal basis.

The funding will be used for exploration work at the company's properties in Quebec. Settlement is expected by April 1.

Breakwater's stock (Toronto: BWR) gained 2 cents, or 5.13%, to C$0.41. Market capitalization is C$275 million.

Breakwater Resources is a Toronto-based diamond and base metal exploration company.

NexMed seals $4 million

NexMed, an East Windsor, N.J.-based developer of treatments for nail fungus, sexual disorders and other ailments, pocketed $4 million from a private placement of 7% convertible notes.

Three accredited investors, including long-time investor The Tail Wind Fund Ltd., of Great Britain, purchased the notes.

The notes mature Dec. 31, 2012 and are initially convertible into common shares at $0.58 each.

Approximately $2.6 million of the notes were issued as consideration for the cancellation of some convertible promissory notes.

Additionally, NexMed said in a press release that it had raised $1.4 million from the refinancing of its manufacturing facility in New Jersey.

"Our ability to successfully refinance the mortgage and push out the maturity date of the notes is yet another testament to the strength that the market continues to place on NexMed," Bassam Damaj, president and chief executive officer, said in the release.

"This latest cash infusion strengthens our reserves and enables us to accelerate the planned development of the next generation of our NexACT technology. In a short period of time, we have made tremendous progress in the development of NexACT for both new drugs and for non-transdermal delivery of drugs. We are pleased with our preclinical research results to-date and look forward to sharing them soon."

NexMed's shares (Nasdaq: NEXM) improved by $0.0187, or 3.92%, to $0.4957. Market capitalization is $47.4 million.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.