Bridge Resources seeks C$10 million; Velo Energy aims for C$6 million; Nemaska to issue units

By Stephanie N. Rotondo

Portland, Ore., May 5 - There were several Canadian dollar-denominated deals entering the PIPE marketplace on Wednesday, as well as a smattering of U.S.-dollar transactions.

Bridge Resources Corp. said it will seek up to C$10 million via a private placement of units. The deal priced at C$6 million, with a C$4 million greenshoe.

Velo Energy Inc. will also privately sell units in an effort to raise C$6 million. Company insiders are expected to subscribe for up to 10% of the financing.

Meanwhile, Nemaska Exploration Inc. announced a C$2 million private placement of units. The company will sell both common share and flow-through units to raise the funds.

Among completed placement, Scarlet Resources Ltd. closed on a private placement of subscription receipts. The deal was oversubscribed, resulting in total proceeds of C$6.64 million.

And Bingo.Com Ltd. settled a deal, taking in $2.25 million. The company sold common stock to a single investor.

Bridge to raise up to C$10 million

Bridge Resources is seeking C$6 million from a private placement of units, according to a press release.

The deal has a C$4 million over-allotment option.

The Denver, Colo.-based company will sell 12 million units on a bought-deal basis at C$0.50. The units will consist of one common share and one half-share warrant. Whole warrants are exercisable at C$0.75 for 18 months.

Proceeds will be used for ongoing exploration and development of the company's gas and condensate properties in Idaho. Settlement is expected by May 17.

Edward Davies, the company's chief executive officer, declined to comment further on the financing.

Bridge's shares (TSX Venture: BUK) fell 4½ cents, or 8.82%, to C$0.465. Market capitalization is C$61.97 million.

Velo aims for C$6 million

Velo Energy, a Calgary, Alta.-based energy company, announced a C$6 million non-brokered private placement of units.

The company will issue 20 million units at C$0.30 each. The units will consist of one common share and one half-share warrant.

Whole warrants are exercisable at C$0.50 for 18 months.

Some managers and employees of Velo intend to subscribe for 10% of the placement, according to a press release.

Proceeds from the financing will be used for working capital, including payment of accrued liabilities incurred from the United Kingdom North Sea acquisitions, as well as for general corporate purposes.

Calls seeking further comment were not returned Wednesday.

Velo's stock (TSX Venture: VLO) slipped a cent, or 2.94%, to C$0.33. Market capitalization is C$19.8 million.

Nemaska to issue units

Nemaska Exploration plans to raise C$2 million via a private placement of common share and flow-through units, the company said in a press release.

There is a C$1 million greenshoe, split evenly between the two unit classes.

Nemaska will sell approximately 2.22 million of the common share units at C$0.45 for proceeds of C$1 million. Approximately 2 million flow-through units will be issued at C$0.50 each, for proceeds of C$1 million.

The common share units will contain one common share and one warrant, while the flow-through share units will hold one flow-through common share and one half-share warrant.

Each whole warrant is exercisable at C$0.60 for two years.

Proceeds will be used for working capital and for exploration and development of Nemaska's Quebec properties. Settlement is expected by May 26.

Nemaska's equity (TSX Venture: NMX) declined 2½ cents, or 6.10%, to C$0.385. Market capitalization is C$14.15 million.

Nemaska Exploration is a Quebec City, Quebec-based mineral exploration company involved in the James bay region of Quebec.

Scarlet placement oversubscribed

Scarlet Resources settled an oversubscribed private placement of subscription receipts, taking in C$6.64 million.

The deal originally priced March 30.

The company had originally intended to sell 12 million of the receipts, but instead sold approximately 13.27 million. Each receipt was issued at C$0.50 and is automatically convertible into one unit containing one common share and one half-share warrant.

Whole warrants are exercisable at C$0.75 for two years.

The financing is being done in connection with Scarlet's planned takeover of United Mine Services Inc. Upon completion of the merger, the funds will be used for development of UMS' Crescent Mine property, as well as for working capital.

Scarlet is a privately held, Vancouver, B.C.-based exploration company.

Bingo.com deal settles

Bingo.com pocketed $2.25 million from a private placement of stock, the company announced.

Unibet Group plc was the investor.

The Anguilla, British West Indies-based company sold 15 million common shares at $0.15 each. The placement shares represented 25.9% of the company's outstanding shares.

"Bingo.com is pleased to have secured a private placement from Unibet," said Tarrnie Williams, chief executive officer, in a press release. "With one of the world's leading gaming operators as both an investor and operational partner, Bingo.com will now have the resources to support its brand in a number of emerging online bingo markets. We very much look forward to taking on a leading role in the expansion of online bingo worldwide."

Bingo.com's shares (OTCBB: BNGOF) closed unchanged at $0.17.

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