Canaco seeks C$25 million; Beacon Hill raises £8.7 million; Thunderbird issues gas-linked note

By Stephanie N. Rotondo

Portland, Ore., July 19 - Canaco Resources Inc. said on Monday that it would raise up to C$25.06 million via a bought-deal private placement of stock.

The deal includes a C$5.04 million over-allotment option. Proceeds will be used, in part, for exploration and development activities.

Beacon Hill Resources plc raised £8.7 million from the sale of a convertible loan note, the company announced.

The loan is convertible into ordinary stock and the conversion price is at a premium to current market prices. The proceeds from the financing will be used, in part, to fund a planned acquisition.

Meanwhile, Thunderbird Energy Corp. brought a C$7.5 million deal to market. The company will sell a 15% three-year natural gas-linked debenture in its financing efforts. A company spokesperson said the structure of the deal allows for optimal upside.

Canaco seeks C$25 million

Canaco Resources launched a C$20.02 million bought-deal private placement of equity, the company said in a press release.

The deal also includes a greenshoe of C$5.04 million.

Canaco will issue 14.3 million common shares at C$1.40 each. The price per share represents a 10.25% discount to the July 16 closing share price of C$1.56.

According to Nick Watters, investor relations manager, the funds will be used primarily at the company's flagship project in Tanzania.

"We will continue to put [money] into the ground and try to ramp up production over the next six to 12 months," he said in an interview with Prospect News.

Watters added that the deal will likely close before the expected Aug. 4 deadline and also that he "fully expects" the deal's agents would fully exercise the over-allotment option.

Canaco's equity (TSX Venture: CAN) gained 12 cents, or 7.69%, to C$1.68. Market capitalization is C$232.83 million.

Canaco Resources is a Vancouver, B.C.-based mineral exploration company.

Beacon Hill raises £8.7 million

Beacon Hill Resources, a London-based resource company, took in £8.7 million via a private placement of a convertible loan note.

The note is convertible into ordinary shares at 8p per share. The price per share represents a nearly 1.4% premium over the July 19 closing share (London: BBHR) price of 7.89p.

And, the note comes due in 364 days.

"This is another significant step for the group," remarked Justin Lewis, executive chairman, in a press release. "This fundraising at a premium to current market prices, together with the strategic investment by Global Coke, ensures the acquisition and development of Minas Moatize is now fully financed."

Beacon Hill's market capitalization is £11.64 million.

Thunderbird sells gas-linked note

Thunderbird Energy is seeking C$7.5 million from a private placement of gas-linked debentures, according to a press release.

The debentures bear interest at 15% over its three-year term. The quarterly rate is subject to a 1% adjustment based on the price variance of natural gas.

Interest on the debt is payable in both cash and common stock. The common shares will be priced at a 10% discount to the market price, with a floor price of C$0.15 per share.

The floor price represents a 16.33% discount to the July 16 closing share price of C$0.18.

Additionally, investors will receive one three-year warrant per each C$0.50 invested. The warrants are exercisable at C$0.30 in the first year, at C$0.40 in the second and at C$0.50 in the third.

Curtis White, who is in charge of corporate development for Thunderbird, told Prospect News that the deal is similar to those done by some of the company's senior officers in previous positions. The structure of the financing "just gives investors a little upside" while also offering "the security of a debenture, but also the upside of the equity."

White noted that the company was sensitive to dilution issues, and thus decided not to raise the C$7.5 million via a straight equity sale.

Investors have shown "quite good interest," he added. He said he hoped the financing would be completed within a month, but declined to give firm dates.

Proceeds will be used to repay an existing C$4 million credit facility with Macquarie Bank, White said.

"This will take out that and also gives us some additional working capital," he said.

Thunderbird's stock (TSX Venture: TBD) fell 5 cents, or 27.78%, to C$0.13. Market capitalization is C$8.72 million.

Thunderbird Energy is a Vancouver, B.C.-based oil and natural gas 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.