Montavo gets equity facility; Volta aims for exploration funds; Minatura Gold to issue shares

By Stephanie N. Rotondo

Portland, Ore., Jan. 12 - Montavo Inc. announced it Tuesday it had signed an agreement with Dutchess Opportunity Fund II LP for a $20 million credit line.

The credit facility allows for drawdowns over the course of five years. Proceeds will be used in part to help the company ramp up sales.

Meanwhile, Volta Resources Inc. said it was planning a C$8 million private placement of units. The financing will be used for the company's planned exploration activities at its flagship project.

Also, Minatura Gold is hoping to pocket nearly $4 million from a private stock sale.

Among completed transactions, EntreMed Inc. took in $2.5 million from a registered direct offering of equity. Star Navigation Systems Group Ltd. also settled a deal, taking in C$2.39 million.

Montavo gets equity facility

Montavo, a Bellevue, Wash.-based provider of location-based wireless marketing services, announced it had secured a $20 million line of credit with Dutchess Opportunity Fund, II, LP.

According to the terms of the five-year facility, Dutchess will purchase common shares at an agreed-upon formula-based price.

"With significant development efforts for mMAP underway, we're pleased to add Duchess and this Montavo controlled equity line of credit to our toolkit of capital instruments," said Brook Lang, chief executive officer, in a press release.

"Ramping up our sales, marketing and business development efforts is the next critical step in our commercialization effort, and appropriate access to several different types of capital options strengthens our ability to move the company and our patent-pending technology forward. This facility allows the company to access capital with the ease and flexibility it needs while continuing to focus on growth."

Added Douglas Leighton, managing director of Dutchess: "We are pleased to be a financial partner to Montavo and look forward to assisting the company with its funding needs through the equity line. We continue to commit capital to small innovative growth companies such as Montavo. This line allows management total control over the timing of each put."

Calls seeking further comment were not returned Tuesday.

Montavo's stock (OTCBB: MTVO) ended unchanged at $0.04. Market capitalization is $1.85 million.

Volta seeks exploration funds

Volta Resources is seeking C$8 million in exploration funding via a private placement of equity units.

International Finance Corp. is the investor.

The Toronto-based company will issue approximately 5.4 million units at C$0.74 each. The units will hold one common share and one half-share warrant. Whole warrants are exercisable at C$1.03 for five years.

The terms of the deal also dictate that IFC has the right to maintain its interest in the company. IFC also has the right to invest another C$4 million in minimum increments of C$1 million over the next year.

"Volta Resources represents a sound investment opportunity for IFC while meeting our project funding criteria," said William Bulmer, global head of mining for IFC, in a press release. "These include the requirement that such projects be technically sound, have good prospects of being profitable and benefit the local economy."

Proceeds will be used for exploration work at Volta's flagship Kiaka Gold Project.

Volta's shares (Toronto: VTR) dropped 5 cents, or 5.56%, to $0.85. Market capitalization is C$67.4 million.

Minatura to issue shares

Minatura Gold will raise $3.8 million from a private placement of common stock, the company said.

The deal originally priced Dec. 21, according to a regulatory filing.

Minatura will sell approximately 10.67 million restricted shares to Minatura International LLC.

The company did not return calls seeking comment.

Minatura is a privately held gold exploration company based in Westlake Village, Calif.

EntreMed closes direct financing

EntreMed completed a $2.5 million registered direct offering of stock, the company said in a press release.

The company issued 3.12 million common shares at $0.80 per share. The price per share represents a 7% discount to the closing price as of Jan. 7.

Proceeds will be used to advance the company's Aurora A/angiogenic kinase inhibitor, ENMD-2076, and for other general corporate purposes.

Calls seeking comment were not returned Tuesday.

EntreMed's equity (Nasdaq: ENMD) declined a dime, or 9.8%, to $0.92. Market capitalization is $84.3 million.

EntreMed is a Rockville, Md.-based developer of therapeutic treatments for cancer and inflammatory diseases.

Star seals C$2.39 million

Star Navigation Systems wrapped a C$2.39 million private placement of units, according to a press release.

The company sold approximately 19.94 million units in the non-brokered financing. Each unit was issued at C$0.12 and included one common share and one warrant. The warrants are exercisable at C$0.30 for two years.

Star's stock (TSX Venture: SNA) gained 1½ cents, or 10.34%, to C$0.16. Market capitalization is C$17.8 million.

Star Navigation Systems is a Toronto-based provider of in-flight safety monitoring system for aircraft.

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