Oro Gold plans units; Spectrum to sell units; FuelCell, Mission to issue stock; PA wraps deal

By Stephanie N. Rotondo

Portland, Ore., June 16 - Oro Gold Resources Ltd. announced Tuesday that it plans to raise C$8 million via a private placement of units.

The deal also includes a greenshoe. Proceeds will be used to advance the company's Trinidad project in Mexico.

Elsewhere, both Spectrum Pharmaceuticals Inc. and FuelCell Energy Inc. announced registered direct offerings. Spectrum will issue units, while FuelCell plans to sell equity.

Also in the energy sector, Mission New Energy Ltd. said it will issue new stock in a private placement aimed at bringing in $12.33 million.

Among European issuers, PA Resources AB said it wrapped an SEK 291.5 million deal. The company sold 11 million shares in the deal.

Oro plans unit placement

Oro Gold Resources will sell units to raise C$8 million via a private placement, according to a press release.

The Vancouver, B.C-based company plans to issue approximately 5.72 million units holding one common share and one half-share warrant. The units will sell at C$0.70 per unit and each warrant is exercisable at C$1.00 for 18 months.

The deal also includes a C$8 million greenshoe.

"This financing will put us in a good position to continue to rapidly advance our exploration targets in the Trinidad district with the goal to increase our current gold resource target and to drill other multiple targets we have identified on our property," commented Oro Gold president and chief executive, Darren Bahrey. "We are on-track to complete a major drill program this year with the aim on getting our gold resource base to the plus million ounce mark. We continue to drill with two diamond drill rigs at our Taunus gold target expanding our recently discovered new high-grade gold zone."

Peter Kendrick, the company's chief financial officer, also noted that private placements are typically the way the company raises funds.

"As far as debt raising, the exploration is not in an advanced enough stage to do debt financing," he said. "So that was out."

Settlement is expected by July 7.

Oro's stock (TSX Venture: OGR) gained 9 cents, or 12.16%, to C$0.83. Market capitalization is C$23.6 million.

Oro Gold Resources is a gold exploration company.

Spectrum sells units

Irvine, Calif.-based Spectrum Pharmaceuticals will take in $10 million via a registered direct offering of stock and warrants, the company announced.

The company will issue approximately 1.72 million shares of common stock, along with warrants equal to another 857,633 shares. The units - which will contain one common share and one half-share warrant - will sell at $5.83, the closing bid price of the company's stock as of June 12.

Each warrant is exercisable at $5.83 per share and is exercisable beginning six months after issuance, expiring within 90 days from the first exercise.

The financing is in addition to a $20 million equity offering completed in late May. Paul Arndt, senior manager of investor relations for the company, told Prospect News that two of the three investors that participated in the previous deal were involved in the current transaction.

"They wanted to invest more," he said.

Arndt also noted that the price per unit was equal to a "52-week closing high I believe."

"We did not go out there to raise money to buy a factory or anything like that," Arndt said, adding that the funds would be used for general corporate purposes.

Settlement is expected by June 19.

Spectrum's equity (Nasdaq: SPPI) dropped 46 cents, or 7.48%, to $5.69. Market capitalization is $193 million.

Spectrum Pharmaceuticals is a commercial-stage biotechnology company focused on oncology.

FuelCell, Mission to issue equity

Among other registered direct offerings, FuelCell Energy announced a $24.2 million stock deal.

Under the terms of the deal, FuelCell will sell 6.7 million common shares at $3.59 per share.

Proceeds will be used for development, project financing, expansion of manufacturing capacity and general corporate purposes. Settlement is expected by June 19.

Calls made to the company seeking comment went unreturned Tuesday.

FuelCell's stock (Nasdaq: FCEL) fell 53 cents, or 12.07%, to $3.86. Market capitalization is $270 million.

FuelCell Energy is a Danbury, Conn.-based developer and producer of fuel cells for commercial, industrial, municipal and utility customers.

Elsewhere in the energy sector, Mission New Energy said it negotiated a $12.33 million private placement of stock with Ir Lee Swee Eng, a Malaysian citizen and investor.

Mission will sell 85 million ordinary shares to and warrants to Eng, according to a press release.

"I believe the business of alternative energy has a long term potential and biodiesel is a critical pillar in the alternative energy mix," said Eng in the release. "Mission's business model is unique and makes it the ideal platform for short, medium and long-term growth."

"With Ir Lee's skills and expertise to share in Mission, I look forward to welcome Ir Lee on the board of Mission and to his contributions," stated Nathan Mahalingam, managing director of Mission.

Upon closing of the transaction, Eng will be entitled to appoint to directors to Mission's board, including on executive director.

Mission's stock (Australia: MBT) closed at A$0.225.

Mission New Energy is a Perth, Australia-based provider of sustainable renewable energy.

PA Resources wraps deal

Stockholm, Sweden-based PA Resources raised SEK 291.5 million in a private placement of equity.

Under the terms of the deal - which concluded June 15 - PA sold 11 million shares at SEK 26.50 per share.

"This money will primarily be used for the development of the Aseng field (formerly Benita) in Equatorial Guinea which is likely to start already this summer, as well as advanced exploration drillings in the Republic of Congo," said Ulrik Jansson, president and chief executive officer, in a statement. "We see good potential for value growth for our shareholders with these investments. At the same time we continue the development of our producing assets by starting a new production well on the Didon field in Tunisia as we announced last week."

PA's shares (Oslo: PAR) closed 70 cents weaker at SEK 3.70.

PA Resources is an oil and gas company.

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