GTO aims for C$100 million; Oxigene plans direct offering; Manas wraps A$4 million equity deal

By Stephanie N. Rotondo

Portland, Ore., July 15 - After a rather busy week in the private placement market, Wednesday's deals were on the lighter side.

GTO Resources Inc. said it would attempt to raise C$100 million via a placement of subscription receipts. The placing is in connection with a letter of intent to combine with three other geothermal companies.

Oxigene Inc. also brought one of the day's larger deals, announcing a $10 million registered direct offering of units. The company did not specify what proceeds were being used for.

From the Southern hemisphere, Australian mining company Manas Resources Ltd. said it settled a A$4 million placement of stock. Fellow Australian miner Ampella Mining Ltd. also completed a deal for total proceeds of A$4 million.

Back in the Northern hemisphere, Avcorp Industries Inc. signed a deal with Panta Holdings BV to sell C$2.42 million of stock. The terms of the transaction also require Avcorp to conduct an offering for existing shareholders.

GTO aims for C$100 million

GTO Resources plans to raise C$100 million in a private placement of subscription receipts.

The financing comes in conjunction with a deal with Polaris Geothermal Inc., Western GeoPower Corp. and Ram Power Inc. to combine businesses.

Under the terms of the deal, GTO will issue the subscriptions at an anticipated price of C$3.00 per receipt.

"The parties to the [letter of intent to combine] believe that the benefits of the transaction are numerous and include the formation of a growth-focused geothermal power company with a diversified project portfolio spanning all development stages from exploration to producing; introduction of a premier geothermal development and acquisition team with experience gained from Ormat Technologies Inc., a global leader in geothermal power; greater market value of combined entity intended to support increased market liquidity and, accordingly, ability to attract capital; and synergies in development, operation and administration expenses.

Once the parties have merged and the placement is completed, proceeds will be used to develop key projects.

GTO's stock (TSX Venture: GTR.H) closed unchanged at C$0.36.

GTO Resources is a Vancouver, B.C.-based natural resource company. Polaris, based in Toronto, is a renewable energy company. Ram Power is a Reno, Nev.-based private renewable energy development company.

Oxigene plans direct offering

Oxigene will conduct a $10 million registered direct offering of equity units, the company announced.

The Waltham, Mass.-based pharmaceutical company plans to issue 6.25 million of the units at $1.60. Each unit will contain one common share, one five-year series 1 warrant for 0.45 shares and one short-term series 2 warrants, also for 0.45 shares.

The series 1 warrants carry a strike price of $2.10 per share, while the series 2 warrants are exercisable at $1.60 per share.

Settlement is expected by July 20.

Calls made to the company seeking comment went unreturned Wednesday.

Oxigene's stock (Nasdaq: OXGN) fell 41 cents, or 20.71%, to $1.57. Market capitalization is $73.4 million.

Manas wraps A$4 million deal

Manas Resources closed on a A$4 million private placement of ordinary shares, according to a press release.

The company sold 40 million shares at A$0.10 per share.

"Gross proceeds of the placement will be utilized primarily for increasing the current 875,000 ounce resource base in the Shambesai‐Obdilla region at the South Kyrgyz Gold Project," the company said in the release.

"Now with a strong cash position Manas is able to implement a very aggressive drilling campaign with up to six rigs operating around the clock," commented Stephen Ross, managing director. "This should allow us to substantially increase our resource base in the key Shambesai‐Obdilla region within the next 12 months."

Manas' stock (Australia: MSR) closed at A$0.12.

Manas Resources is a Balcatta, Australia-based gold mining company.

Ampella sells shares

In other news from Down Under, Ampella Mining also announced a completed placement of equity.

The company issued approximately 13.33 million ordinary shares at A$0.30 per share, for total proceeds of A$4 million. Colonial First State, a new investor, purchased 10 million of the shares, while the remaining portion went to existing investors.

"Ampella is pleased with the support of its institutional shareholders which ensures that Ampella will be fully funded as it begins to unlock the outstanding potential of its Batie West Gold Project in Burkina Faso," the company said in a statement.

The funds raised in the transaction bring the company's total cash balance to A$7 million.

Ampella's shares (Australia: AMX) ended unchanged at A$0.37.

Ampella Mining is a Perth, Western Australia-based mineral exploration company.

Avcorp signs deal with Panta

Avcorp Industries, a Vancouver, B.C.-based builder of major airframe structures, will sell C$2.42 million of stock to Panta Holdings BV.

Approximately 16.16 million shares will be issued at C$0.15 per share.

Also, under the agreement with Panta, Avcorp will undertake a prospectus rights offering for existing shareholders, including Panta. Participating shareholders will receive 2.5 additional shares per one existing share held at C$0.06 per share. Panta has agreed to purchase any shares not subscribed for in the offering.

Avcorp's equity (Toronto: AVP) gained C$0.025, or 19.23%, to C$0.155. Market capitalization is C$5.01 million.

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