NiMin wants capex funding; Kun Run to issue preferred units; Ascot seeks C$7.5 million

By Stephanie N. Rotondo

Portland, Ore., April 22 - Biotechnology and technology companies came to the PIPE marketplace Thursday, but mineral and resource companies continued to dominate.

NiMin Energy Corp. brought a $10 million private placement of equity to market. NiMin intends to use the funds for its 2010 capital expenditure program.

In the biotech sphere, Kun Run Biotechnology Inc. said it would take in $8 million from a private placement of preferred units. The units will be sold to one investor, an investment fund with which the company's chairman is associated.

Ascot Resources Ltd. will also sell units - of the common-share and flow-through variety - in an effort to raise C$7.5 million. A company spokesperson said the funds would be used for operations, including upcoming drilling programs.

Golden Predator Royalty & Development Corp. completed a private placement of flow-through stock, pocketing C$6.03 million. Sara Jones, a company representative, told Prospect News that the dollars raised would "finance exploration in the Yukon," where the company owns an "industry-leading gold position."

And, Genesis Electronics Group Inc. announced it had inked a deal with Tangiers Investments, in which the investor will provide Genesis with a $10 million line of credit. Genesis will sell shares to the investor at a 15% discount.

NiMin wants capex funding

NiMin Energy announced a $10 million private placement of common stock.

The deal also includes a 15% greenshoe.

The Carpinteria, Calif.-based company will issue 8 million of the shares at $1.25 per share.

Proceeds will be used for NiMin's 2010 capital expenditure program, including the drilling of 11 additional wells at the Ferguson Ranch Field. Some funds will also be used for general corporate purposes. Settlement is expected by May 6.

The company did not return e-mails seeking further comment.

NiMin's stock (Pink Sheets: NEYYF) gained 8 cents, or 5.66%, to $1.49 per share.

NiMin Energy is an independent oil and gas exploration and production company.

Kun Run to issue preferred units

Haikou City, China-based Kun Run Biotechnology will privately sell $8 million of preferred-equity units to Caduceus Asia Partners, L.P., an investment fund managed by OrbiMed Advisors, LLC, and Xueyun Cui, chairman and majority stockholder of Kun Run.

The units will consist of one series A preferred shares and 0.30 of a warrant.

"We are extremely pleased to have OrbiMed as Kun Run's first institutional investor, marking an important milestone in our company's progress," Cui said in a press release.

"We believe OrbiMed has a distinguished reputation and strong track record in health care fund management with a global network that enables our company access to opportunities in the overseas pharmaceutical market.

"We believe that our company's strong foundation in peptides, peptide-based drugs and small molecule drugs, along with OrbiMed's credibility in the healthcare space, will result in continued growth and return for our shareholders," Cui added.

Proceeds will be used for potential acquisitions and for working capital.

Kun Run's equity (OTCBB: KURU) was unchanged at $2.25 per share.

Kun Run is a developer of prescription polypeptide drugs.

Ascot seeks C$7.5 million

Ascot Resources is looking to raise C$7.5 million via a private placement of units.

The company intends to sell 2.77 million flow-through units at C$0.90 each for total proceeds of C$2.5 million. The units will consist of one flow-through common share and one half-share warrant. Whole flow-through warrants are exercisable at C$1.00 for two years.

Additionally, the company will sell 6.33 million common-share units at C$0.79 each for total proceeds of C$5 million. The units will hold one common share and one warrant, which is exercisable at C$0.95 for two years.

"We need money to operate, basically," Robert Evans, chief financial officer, said in an interview with Prospect News. As the company has no cash flow, the funds were needed for upcoming drilling programs, as well as general corporate purposes, he said.

Settlement is expected by May 12.

Ascot's shares (TSX Venture: AOT) improved by 5 cents, or 6.33%, to C$0.84 per share. Market capitalization is C$45.5 million.

Ascot Resources is a Vancouver, B.C.-based junior mineral exploration and development company.

Golden settles unit sale

Golden Predator Royalty & Development, a Vancouver, B.C.-based gold and silver mining company, pocketed C$6.03 million from a private placement of flow-through shares.

The deal originally priced on April 5 for C$5.01 million and included a C$1.02 million greenshoe.

The company issued 10.05 million of the shares at C$0.60 per share. Of the shares sold, 1.7 million were issued as part of the fully exercised greenshoe.

"The company intends to use the net proceeds of the offering to conduct exploration on the company's Gold Dome, Brewery Creek, Clear Creek, Antimony and Eureka projects located in the Yukon's Tintina Gold Belt," according to a press release.

Golden Predator's stock (TSX Venture: GPD) fell a penny, or 1.92%, to C$0.51 apiece. Market capitalization is C$26.6 million.

Genesis inks credit line

Genesis Electronics Group secured a $5 million equity line of credit with Tangiers Investors LP, according to a press release.

Genesis will sell common shares to the investor at 85% of the lowest volume-weighted average price for the pricing period. Tangiers can only purchase up to $100,000 shares per every 10-consecutive-trading-day period.

"This funding is an extremely positive milestone for our company," remarked Raymond Purdon, chairman, in the release.

"This transaction will allow us not only to roll out the first line of products, but also look for additional avenues to unlock shareholder value. We are pleased to receive this vote of confidence from Tangiers."

"The costs associated with moving from a developmental and prototype stage to actual production and distribution for the consumer market will be much more easily met through our favorable relationship with Tangiers," added Edward Dillon, chief executive officer.

"We are in a far stronger financial position to execute our business plans in a timely manner."

Genesis' equity (OTCBB: GEGI) ended 3 cents, or 30.0%, higher at $0.13 per share. Market capitalization is $18.2 million.

Genesis Electronics Group is a Hollywood, Fla.-based technology company.

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