TG World inks credit facility; Esperanza seeks C$5 million; xRM Global downsizes unit offering

By Stephanie N. Rotondo

Portland, Ore., Jan. 19 - Canadian issuers proliferated the PIPEs market Tuesday.

TG World Energy Corp. announced that it had inked an agreement with an institutional investor for a C$7.5 million loan. According to the company's top executive, the funding will be used as bridge financing.

Meanwhile, Esperanza Silver Corp. said it was seeking up to C$5 million from a private placement of units. The chief executive officer said that investors had thus far acted favorably to what he dubbed "a fair deal all the way around."

xRM Global Inc. downsized its previously announced private placement of units Tuesday. A company spokesperson said the tightening of the offering was due to a touchy marketplace.

Also, Soltoro Ltd. brought a C$2.1 million private placement of units to market.

TG World inks credit facility

TG World Energy secured a C$7.5 million secured loan facility, the company said in a press release.

The loan bears interest at 18% and is secured by certain Alaskan assets. The facility is repayable at any time over its 18-month term.

The lender also receieved warrants equal to 10 million common shares. The warrants are exercisable at C$0.25 until Jan. 15, 2012.

Dean Callaway, chief financial officer, told Prospect News that the company was looking at the finance "more as a bridge facility" than anything else, as TG awaits certain funding from the state of Alaska. "Timing is more an issue than anything."

"The coupon is high, for sure," he added, but noted that it was repayable at any time.

Additionally, he said the issuance of warrants acted as a "sweetener" for the investors.

"That seems to be what the marketplace is funding these days," he said of the inclusion of the warrants. Also, if all the warrants are exercised, "it will give an additional injection of funds."

Proceeds will be used to "augment TG World's cash position and be used by the company to fund ongoing exploration efforts in Alaska and Niger, as well as to actively pursue other oil and gas opportunities," the press release said.

TG World's stock (TSX Venture: TGE) fell half a cent, or 2.94%, to C$0.165. Market capitalization is C$20.18 million.

TG World Energy is a Calgary, Alta.-based junior oil and gas exploration company.

Esperanza aims for C$5 million

Esperanza Silver will take in C$5 million from a private placement of units, according to a press release.

The Vancouver, B.C.-based company will sell 4 million units at C$1.25 per unit. The units will contain one common share and one warrant. The warrants are exercisable at C$1.75 for two years.

The warrants also carry an acceleration clause.

According to Bill Pincus, president and chief executive officer, the company is "raising the money to advance feasibility work at our Cerro Jumil property in Mexico, as well as other exploration opportunities and general corporate purposes."

Pincus also said he was pleased with the terms of the deal, which he deemed "a fair deal all the way around." Investors, he said, have been "enthusiastic" and the placement was largely sold. He estimated that the financing should close fairly quickly, though he declined to be more specific.

Esperanza's equity (TSX Venture: EPZ) gained a penny, or 0.75%, to C$1.35. Market capitalization is C$64.15 million.

xRM deal decreased

xRM Global, a Toronto-based developer of utilities for global enterprises, downsized a previously announced non-brokered private placement of units.

The deal originally priced at C$13 million on Nov. 4. The company now intends to raise just C$3 million.

"The markets are just not cooperating," Gary Bartholomew, CEO, said in an interview with Prospect News. "The terms are what the market is requesting so that is what we are giving them. Right now, the market is dictating what is required."

xRM will sell up to 4.61 million units at C$0.65 each. The units will consist of one common share and one warrant. The warrants are exercisable at C$0.80 for one year.

The financing could come in multiple tranches and is expected to be completed by Feb. 20. Proceeds will be used for business expansion and working capital.

xRM's shares (TSX Venture: XRM) slipped 5 cents, or 7.69%, to C$0.60. Market capitalization is C$13.73 million.

Soltoro plans unit sale

Soltoro is seeking C$2.1 million via a private placement of units.

The company intends to issue up to 6 million units in the non-brokered transaction at C$0.35 each. The units will hold one common share and one half-share warrant. Whole warrants are exercisable at C$0.50 for 18 months.

Proceeds will be used for exploration and working capital.

Calls seeking comment were not returned Tuesday.

Soltoro's stock (TSX Venture: SOL) ended unchanged at C$0.395. Market capitalization is C$8.72 million.

Soltoro is a Toronto-based gold, silver and copper mining company.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.