Canadian volume high on strong oil, gas, gold markets; Connacher launches C$20.25 million deal

By Sheri Kasprzak

Atlanta, Oct. 25 - Canadian companies started the week off by hitting the private placement market en masse, striving for larger deals than last week.

The market was likely driven by strong oil, gas and gold markets, according to sell-side sources.

"It's Monday," joked one sell-sider, when asked about higher Canadian volume.

"Oil and gas and golds are strong," he added. "Most of the privates fit into the resource-type issuers."

Heading up Canadian action Monday was a C$20.25 million offering from Connacher Oil and Gas Ltd.

The deal consists of 30 million common shares at C$0.475 and 10 million flow-through shares at C$0.60.

Dominick & Dominick Securities Inc. will act as placement agent in the deal, the proceeds of which will be used for Connacher's western Canadian exploration and development activities.

Connacher, based in Calgary, Alta., is an oil and gas exploration and production company. Its stock closed down C$0.09 at C$0.50 Monday.

Bankers' C$15 million deal

In other Canadian deals, Bankers Petroleum Ltd. said Monday morning the company plans to raise C$15 million in a private placement.

Orion Securities Inc. and Canaccord Capital Corp. will serve as placement agents in the deal, which consists of 27.3 million units of one share and a half-share purchase warrant at C$0.55. The whole warrants, good for five years, allow for the purchase of an additional share at C$0.95.

Bankers plans to wrap up the deal in mid-November.

The oil company, based in Vancouver, B.C., plans to use the proceeds from the deal to accelerate the development of one of its oil fields in Albania.

The company's stock closed down C$0.04 at C$0.55 Monday.

Ausam's upsized deal

Yet another Canadian company took advantage of the strong resources market.

Ausam Energy Corp. used current favorable conditions as a chance to upsize its previously announced C$5 million deal to C$8 million

The new deal includes 10.6 million units of one share and half of a share purchase warrant for C$0.75.

Each of the whole warrants allows for the purchase of an extra share at C$1 for a year after the deal closes. Ausam expects the private placement to close Oct. 29.

The brokered portion of the financing is expected to raise C$5 million. Dundee Securities Corp. will act as the placement agent on the brokered portion of the deal.

Ausam, a Calgary, Alta.-based energy company, plans to use the proceeds to fund its oil and gas development and exploration program in Queensland, Australia.

Ausam's stock closed up C$0.01 at C$0.76 Monday.

Western Prospector's C$5.75 million deal

Meanwhile, Western Prospector Group Ltd. racked up C$5.75 million from its private placement.

The fully subscribed non-brokered deal consists of five million units of one common share and one half non-transferable purchase warrant at C$1.15.

The whole warrants, good for one year, allow for the purchase of an additional share at C$1.60.

Also, the company issued 56,000 units to those who introduced arms-length buyers.

Western Prospector is a Vancouver, B.C.-based mineral discovery company. It plans to use the proceeds from the financing for exploration at the company's Saddle Hills Uranium Project in Mongolia and for working capital.

The company's stock closed down C$0.10 at C$1.23.

Mymetrics gets $5 million

In sluggish U.S. private placement action, Mymetics Corp. obtained a $5 million standby equity distribution agreement.

In its agreement with Cornell Capital Partners, Mymetics will be able to draw up to $175,000 per advance for two years.

"We are pleased to have been able to structure such a sizable financing package with a reputable financial institution like Cornell and to have its participation as well as confidence in our company and products in this important stage of our company's growth," said Christian J.-F. Rochet, president and chief executive officer of Mymetics, in a statement.

"In 2005, we anticipate to optimize our HIV-AIDS vaccine prototype and to sign a partnership agreement with a major industrial player to assist us in our planned human clinical trials. We have arranged this financial commitment in order to fund these developments and give us flexibility to achieve further progress in other areas as well."

Mymetics, based in Providence, R.I., is a biotechnology company focused on developing HIV treatments and vaccines. The company plans to use the funds to work on its HIV vaccine prototype and to conduct human clinical trials.

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