Gabriel seals C$67.5 million; Gold Resource settles stock deal; OctoPlus pockets €4.04 million

By Stephanie N. Rotondo

Portland, Ore., Dec. 18 - Friday's private placement market remained active, though it was deals being completed, rather than coming to market.

Gabriel Resources ltd. welcomed a strategic investor into its fold with the completion of a C$67.5 million private placement of units. The investor, BSG Capital Markets PCC Ltd., has historically been involved in the mining sector, as well as in Romania, where Gabriel has some assets.

Meanwhile, Gold Resource Corp. wrapped a $16 million private equity sale. As with the Gabriel financing, there was only a single investor.

OctoPlus NV raised €4.04 million from the placement of ordinary shares. The company will use the funding to further its drug delivery service business.

Also, Shanta Gold Ltd. secured a £3 million standby equity distribution agreement with YA Global Master SPV Ltd.

In yet another settled transaction, Cantronic Systems Inc. took in C$2.3 million from a private placement of convertible debentures.

Gabriel raises C$67.5 million

Gabriel Resources pocketed C$67.5 million from a private placement of units, the company announced.

The deal originally priced Nov. 11. BSG Capital Markets PCC Ltd. was the investor.

Gabriel sold 30 million units at C$2.25 each. The units contained one common share and one warrant, which is exercisable at C$2.50 for 18 months.

Proceeds will be used for development of the Rosia Montana gold project in Romania, in which Gabriel has an 80.23% stake.

Richard Young, chief financial officer, told Prospect News that the company was pleased to welcome the new investor into its shareholder group.

"It was an opportunity to bring a strategic new investor into our investor base that not only understands the mining business but also Romania," he said, noting that BSG is active in the mining arena, as well as in other industries in Romania.

Gabriel's stock (Toronto: GBU) gained 41 cents, or 10.07%, to $4.48. Market capitalization is C$1.3 billion.

Gabriel Resources is a Toronto-based mineral exploration and development company.

Gold Resource wraps equity deal

Gold Resource took in $16 million from a private placement of equity, according to a press release.

Hochschild Mining plc was the investor.

The Denver-based company sold approximately 1.95 million restricted common shares.

Part of the proceeds will be used for working capital at the El Aguila project in Oaxaca, Mexico, while the remaining portion will be used at the Arista underground mine.

"We are pleased Hochschild is supportive of our need to accelerate the underground development," commented William W. Reid, president, in the release. "We must have the Arista underground mine developed sufficiently over the next 12 months to deliver sustainable polymetallic vein ore to the mill on a daily basis by the time the open pit mine is finished."

"If we had to rely solely on the ramping up of sufficient cash flow this important aspect of the project could have been delayed. The previous $4 million escrowed for exploration and underground development, of which $3.5 million remains, will now be used solely for exploration.

"We are pleased to have the continued support and financial assistance of Hochschild Mining as we make the transition from an explorer to producer," Reid added. "Hochschild continues to assist us in many ways, in addition to financial support, which has been much appreciated."

Gold's shares (OTCBB: GORO) jumped 72 cents, or 7.21%, to $10.70. Market capitalization is $479 million.

Gold Resources is a gold and silver exploration and development company.

OctoPlus pockets €4.04 million

OctoPlus, a Leiden, Netherlands-based pharmaceutical company, said it raised €4.04 million from private placement of ordinary stock.

The company issued approximately 3.23 million ordinary shares at €1.25 each.

"Following the completion of these financings, the company positions itself for a financially secure future as it continues to grow its drug delivery service business," the company said in a statement.

"We are delighted to announce these financing activities that will enable OctoPlus to continue its strategic change into a service-based business and proceed towards profitability," remarked Simon Sturge, chief executive officer, in the press release. "This year has seen a number of changes for OctoPlus which have had a financial impact. We have opened a new production facility and have reorganised the company in order to start off 2010 with a streamlined organization.

"The new investors that have joined us show the expanding interest of the international investment community for OctoPlus as an investment opportunity. We look forward to building on our new service-based business model and eagerly await the top-line results for the ongoing Locteron study, which are expected to be released shortly."

OctoPlus' equity (Amsterdam: OCTO) closed at €1.37.

Shanta gets SEDA

Shanta Gold secured a £3 million standby equity distribution agreement with YA Global Master SPV Ltd.

The United Kingdom-based gold exploration company will sell ordinary shares to the investor over the course of 30 months. The deal will likely come in multiple tranches, though there cannot be more than one drawdown in a 10-day trading period.

The price per share will be equal to the average market price over a 10-day period, less a 7% discount.

The company intends to use the proceeds "to assist...with financing exploration and property upgrade activities," according to a press release.

"This funding arrangement provides Shanta Gold with flexibility to raise funds efficiently as needed and at increasing valuations as the company moves into its planned production phase," said Walton Imrie, executive chairman, in the release.

Shanta's shares (London: SHG) closed at 7.3p. Market capitalization is £7.91 million.

Cantronic seals C$2.3 million

Cantronic Systems completed a C$2.3 million private placement of 10% unsecured convertible debentures, the company said in a news release.

The deal originally priced Dec. 9.

The notes mature Dec. 15, 2014 and are convertible into common shares at C$0.40 per share.

Cantronic's stock (TSX Venture: CTS) improved by half a cent, or 1.72%, to C$0.295. Market capitalization is C$22.8 million.

Cantronic Systems is a Coquitlam, B.C.-based provider of infrared and video surveillance technologies.

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