Smithtown secures $14 million; NWM gets funds for drill program; Creston Moly wraps unit sale

By Stephanie N. Rotondo

Portland, Ore., July 28 - The mining sector was the clear dominator of Tuesday's private placement market, though deals were on the lower end.

It was Smithtown Bancorp Inc. that brought one of the day's largest deals. The bank holding company said it raised $14 million by selling subordinated debt.

In the mining arena, NWM Mining Corp. said it would take in C$4 million by issuing equity units. The company said the funds would be used for its Lluvia de Oro drill program. That site had previously been closed since 1998.

Meanwhile, Creston Moly Corp. settled a C$3 million placement of units. A company spokesperson also gave an update on the merger with Tenajon Resources Corp.

Puget Ventures Inc. plans to raise C$3.5 million in a unit sale. Proceeds will be used for exploration.

Among other sectors, Oculus Innovative Sciences Inc. said it would issue common share units in a private placement. The price per unit has yet to be determined.

Smithtown secures $14 million

Smithtown Bancorp raised $14 million through a private placement of 11% subordinated notes, according to a press release.

The notes mature July 1, 2019 and interest on the debt is payable semiannually.

Investors also received warrants for a 350,000 common shares at a strike price of $11.50 for seven years.

"We feel that this capital raise is once again a vote of confidence by investors in our plan to continue to grow our deposits and loans," said Brad Rock, chairman, president and chief executive officer, in the release. "We now feel that we have enough capital to support our plans for continued growth while maintaining a strong balance sheet. We do not currently contemplate any additional capital offerings in the near future."

Smithtown's stock (Nasdaq: SMTB) gained a dime, or 0.83%, to $11.50.

Smithtown Bancorp is the Smithtown, N.Y.-based parent company of Bank of Smithtown.

NWM raises funds for program

NWM Mining will conduct a C$4 million non-brokered private placement of equity units, the company announced.

The units will include one common share and one warrant. Each unit will sell at C$0.06 per unit and each warrant is exercisable at C$0.08 for 18 months.

Chris Berlet, chief executive officer of NWM, told Prospect News that the funds would be used to start drilling at the company's Lluvia de Oro property. He noted that the mine had been closed since 1998.

"It's never been properly drilled," he explained. "So we are going to do that. We are ready to start commercial mining."

The drilling is expected to begin in September or October of this year.

"It's an excellent time for the company," Berlet remarked. He said that the company expects to hit its target of 1 million ounces in reserve by April or May 2010.

NWM's shares (TSX Venture: COL) ended unchanged at C$0.05.

NWM Mining is a Toronto-based gold mining company.

Creston wraps unit sale

Creston Moly said it closed on its C$3 million private placement of units in a press release.

In its second tranche, the company sold 13.05 million units for total proceeds of C$1.31 million. The first tranche settled July 20 and included the sale of 16.95 million units for proceeds of C$1.7 million.

Each unit contains one common share and one warrant. The units sold at C$0.10 each and the warrants are exercisable at C$0.15 for two years.

"It's a good thing," said Ken MacDonald, investor relations for the company. "We needed the money so we raised some here."

MacDonald said that the funds were not "earmarked for anything specific," just for working capital purposes.

Additionally, MacDonald said that the company's planned merger with Tenajon Resources Corp. was moving along and a shareholder meeting was scheduled for Sept. 8.

A group of shareholders had previously objected to the merger and requested a meeting to vote on the transaction.

Under the terms of the deal, Creston will issue 0.84 shares for each Tenajon share held. MacDonald said Tenajon has already sent out its informational packets to shareholders, while Creston was currently getting its packet together.

Creston's equity (TSX Venture: CMS) closed steady at C$0.15. Market capitalization is C$18.3 million.

Creston Moly is a Vancouver, B.C.-based mineral explorer.

Puget set to raise C$3.5 million

Puget Ventures will raise C$3.5 million via a private placement of common share units and flow-through shares.

The Vancouver, B.C.-based capital pool company will issue 10 million units containing one common share and one half-share warrant at C$0.30 per unit. The warrants are exercisable at C$0.40 for two years.

Also, 1.25 million flow-through shares will be sold at C$0.40 per share.

"Proceeds of the financing will be used to expand and confirm historic cobalt and copper resources at the mine site and initiate engineering work on the Werner Lake West Cobalt deposit, to meet exploration commitments in the Werner Lake Belt and in Red Lake, Ontario, and for general working capital," the company said in a news release.

Settlement is expected by Aug. 19.

Puget's stock (TSX Venture: PVS) fell 3 cents, or 9.09%, to C$0.30. Market capitalization is C$3.2 million.

Also in the mining sector, Amerpro Resources Inc. said it will sell 12 million units on a best-efforts basis to raise C$3 million.

Each unit will hold one common share and one half-share warrant. The units will sell at C$0.25 per unit and each one-year warrant is exercisable at C$0.40.

The Vancouver, B.C.-based company's shares (TSX Venture: AMP.A) improved by 6 cents, or 17.14%, to C$0.41. Market capitalization is C$2.19 million.

Oculus to sell equity units

Oculus Innovative Sciences will issue 1.9 million common shares in a private placement, the company said.

Under the terms of the deal, Oculus will sell units that include the shares, as well as five-year warrants good for another 950,000 common shares.

Dan McFadden, director of public and investor relations for Oculus, said that the price per unit has yet to be determined.

"It could be announced by tomorrow," he said. He noted that the deal is expected to close July 30.

McFadden said proceeds would be used for working capital.

Oculus' shares (Nasdaq: OCLS) dipped 22 cents, or 7.8%, to $2.60.

Oculus is a Petaluma, Calif.-based developer and manufacturer of the Microcyn Technology platform.

Among other issuers in the medical-related field, Vical Inc. announced it inked a deal with Federated Kaufmann Funds to raise $10 million.

Vical will sell approximately 2.8 million common shares are $3.63 per share.

Proceeds will be used for development of Vical's programs, as well as for general corporate purposes.

Vical's stock (Nasdaq: VICL) gained a quarter, or 6.87%, to $3.89.

Vical is a San Diego, Calif.-based biopharmaceutical company.

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