Canada Energy to raise C$12 million; Tagish speeds funds by closing first tranche; Optimer plans $35.9 million

By LLuvia Mares

New York, Oct. 24 - The oil and mining sector lead PIPEs news Wednesday with Canada Energy Partners Inc. announcement to arrange a C$12 million private placement of stock Wednesday.

"We are still an exploration company and we don't need the tax deduction at the moment, we have plenty of it so we chose to do this strategy [flow-through shares] because it will benefit our shareholders the most at this time," said a company insider. "We have high hopes about the potential of the CBM [Coal Bed Methane] project and our exploration projects."

The company will sell C$9.5 million in flow-through shares and C$2.5 million in common shares. The shares will all have a four-month hold period.

Research Capital Corp. will be the agent.

Canada Energy Partner's stock (TSX Venture: CE) closed at C$0.95 on Wednesday, down C$0.01 from Tuesday's C$0.96 close.

"The proceeds will be divided, $3 million will be used for the Coal Bed Methane (CBM) project, $7.5 million will be used for exploration near northeast British Columbia and the remainder will be used for working capital and broker commissions," he said.

Based in Vancouver, B.C., Canada Energy Partners is an oil and gas company specializing in natural gas primarily from coal bed methane.

Optimer to take in $35.9 million

In U.S. PIPE activity, Optimer Pharmaceuticals, Inc. announced plans to raise a $35.9 million private placement of common stock.

The company will sell 4.6 million shares of stock at $7.80 per share. No warrants were issued in the transaction.

"A lot of the money is going to the company's phase 3 clinical trials," Christina Donaghy, the company's corporate communications manager, told Prospect News. "The rest will most likely be used for the pre-launch activity of the drug." She declined to be more specific about the use of proceeds.

"The drug we are pursuing to develop is going to save a lot of lives," she said. "The drug we have, we expect to get good results."

The deal is expected to close on Oct. 29.

The company's stock (Nasdaq: OPTR) closed at $8.56 Wednesday, up $0.19 from Tuesday's $8.37 close.

Piper Jaffray & Co. was the placement agent in the offering.

San Diego-based Optimer Pharmaceuticals is a biopharmaceutical company specializing on the discovering, developing and commercializing of innovative treatments.

Tagish Lake wraps first tranche

Back in the oil and mining sector, Tagish Lake Gold Corp. announced it has raised C$479,400 in the first tranche of a non-brokered C$1.7 million private placement of units. The deal priced on Sept 25.

In order to receive funds faster the company decided to execute the deal in two tranches, said Lindsay Malcolm, Tagish's investor relations director.

"We needed the money for the ground now," said Malcolm. "It is undervalued to its peers and we are at a further stage of development than our peers. We have tremendous resources known in the ground and we are going into production in 2009, we are going to be a mine, we are not an exploration company."

In this tranche, the company sold 2.82 million units.

As previously reported, the company plans to sell a total of 10 million units at C$0.17 apiece. Each unit consists of one flow-through common share and one half share warrant. Each whole non-transferable warrant is exercisable at C$0.25 for 18 months.

The company's stock (TSX Venture: TLG) closed at C$2.45 on Tuesday and did not see any activity Wednesday.

Proceeds will be used to fund a diamond drilling program.

Based in Vancouver, B.C., Tagish is a exploration and development company focused on the Canadian Yukon Territory.

Avalon to negotiate C$15 million

Avalon Ventures Ltd. announced it has entered into an agreement with Research Capital Corp. for a C$15 million private placement of units and shares.

The company will sell approximately C$10 million in units of one common share and one half-share warrant at C$1.55 apiece. Each whole warrant will be exercisable for one common share at C$2.00 for 18 months.

Avalon also will sell about C$5 million in flow-through shares at C$1.85 per share.

Research Capital also has a greenshoe option for approximately C$2.225 million in units.

Avalon Ventures stock (TSX Venture: AVL) closed at C$1.66 on Wednesday, up C$0.01 from Tuesday's C$1.65 close.

Proceeds will be used for exploration and development projects, for working capital and other general corporate purposes.

Avalon Ventures is a Toronto-based junior mineral exploration and development company, with a primary focus on rare metals and minerals with high technology applications or offering environmental benefits.

Target to raise £5.6 million

Target Resources plc said it will raise £5.6 million in a private placement of shares.

"We are delighted with the interest shown by investors in the Fundraising. Target now has the resources, team and skills in place to deliver its plan and maximize the full potential of its existing leases in Sierra Leone," said Dr. Nissim Levy, company managing director, in a press release. "We are particularly pleased to welcome Tiffany, one of the world's most prestigious diamond retailers, as a strategic partner of Target."

The company will sell a total of 26,666,664 new ordinary shares. It has conditionally placed 17,142,855 shares at 21p apiece for £3.6 million. In addition, it will directly place 9,523,809 shares at the same price for about £2 million.

The company's stock (London: TGT) closed at £22.40 Oct. 23 and did not see any activity on Wednesday.

Proceeds will be used to acquire mining equipment and infrastructure for the company's diamond leases in Sierra Leone.

Based in London, Target Resources is engaged in alluvial diamond mining and exploration in Sierra Leone.

© 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.