Blackhawk Capital signs deal with Loofbourrow; Welichem set to raise funds, consolidate shares

By Stephanie N. Rotondo

Portland, Ore., July 9 - Canadian issuers took over the private placement market Thursday, but it was New York-based Blackhawk Capital Group BDC Inc. that brought that day's biggest deal.

In a filing with the Securities and Exchange Commission, Blackhawk said it had retained an agent to aid in its effort to raise $250 million. The company said it would sell equity to raise the funds.

Meanwhile, Welichem Biotech Inc. announced it would conduct a C$3.75 million private placement of units. The offering will be made once the company completes a previously announced consolidation of stock.

Medoro Resources Ltd. will also sell units to raise C$7.5 million. Proceeds will be used to further the company's planned acquisition of Colombian assets.

Also among unit sellers, Sacre-Coeur Minerals Ltd. hopes to take in C$3.25 million in its private sale.

In completed deals, Dia Bras Exploration Inc. settled a C$4 million placement of units. The company's largest shareholder committed to more than half of the offering.

Blackhawk signs deal

Blackhawk Capital Group intends to raise $250 million via a private placement of equity with the help of agent John W. Loofbourrow Associates, Inc., according to a regulatory filing.

Loofbourrow is under contract for 180 days to seek prospective investors for the financing. About 50 million shares are expected to be sold at $5.00 per share.

The filing did not specify whether the deal was a straight equity transaction or whether the shares would be sold with warrants.

Blackhawk Capital's chief executive officer, Craig Zabala, could not be reached for comment. John Loofbourrow, president of John W. Loofbourrow, declined to comment.

Blackhawk Capital's stock (OTCBB: BHCG) ended unchanged at $0.09.

Blackhawk Capital is a New York-based business development company.

Welichem set to raise funds

Welichem Biotech is planning a C$3.75 million non-brokered private placement of units.

The Burnaby, B.C.-based company will issue 25 million units holding one common share and one half-share warrant. The units will sell at C$0.15 per unit and each whole warrant is exercisable at C$0.15 for two years.

The placement will take place once the company has consolidated its issued and outstanding shares. Current shareholders will receive one post-consolidation share per every 10 pre-consolidation share.

The share consolidation was originally proposed in March and was subsequently approved by approximately 93% of shareholders at a special meeting in April, according to a press release. The company's board had six months to implement the consolidation.

Welichem's equity (TSX Venture: WBI) closed unchanged at C$0.01. Market capitalization is C$1.73 million.

Welichem Biotech is a biotechnology company focused on autoimmune diseases and cancer.

Medoro plans financing

Medoro Resources aims to raise C$7.5 million via a private placement of equity units, according to a press release.

Under the terms of the deal, Medoro will sell 30 million units containing one common share and one warrant. The units will be issued at C$0.25 per unit on a best efforts basis and each warrant is exercisable at C$0.50 for two years.

Proceeds from the fundraising will go toward due diligence investigations and procedures regarding potential acquisition targets in Colombia, as well as for the establishment of operations in that region.

Medoro recently inked a deal to acquire Colombia Goldfields Ltd., which has properties in the Marmato District of the country.

"Medoro continues to complete its due diligence investigations relating to the proposed acquisition of Colombia Goldfields Ltd., which remains subject to SEC review (on behalf of Colombia Goldfields) and regulatory, shareholder and court approval," the company said in the release. "It is anticipated that this acquisition, subject to the receipt of the foregoing, will close in the fall. Medoro is also examining other potential acquisition candidates and properties in Colombia, all of which are at the preliminary due diligence stage."

Settlement is expected by July 22.

Medoro's shares (TSX Venture: MRS) fell 7 cents, or 23.33%, to C$0.23. Market capitalization is C$22.2 million.

Medoro Resources is a Toronto-based gold exploration and development company.

Sacre-Coeur to take in C$3.25 million

Sacre-Coeur Minerals negotiated a C$3.25 million non-brokered private placement of units.

The company plans to sell 5 million units of one common share and one half-share warrant at C$0.65 per unit. Each whole two-year warrant is exercisable at C$0.85.

Proceeds will be used for a variety of purposes, including funding of a test mining program at the company's Lower Puruni project at Million Mountain and for further drilling and exploration of the property.

Sacre-Coeur's equity (TSX Venture: SCM) improved by 2 cents, or 3.12%, to C$0.66. Market capitalization is C$19.8 million.

Sacre-Coeur Minerals is a Vancouver, B.C.-based mineral exploration company.

Dia Bras settles unit sale

Dia Bras Exploration, a Montreal-based precious and base metals exploration company, closed a C$4 million private placement of units, the company announced.

The company sold approximately 72.73 million units containing one common share and one warrant at C$0.055 per unit. Each warrant is exercisable at C$0.10 until Jan. 9, 2011.

Dia Bras' major shareholder, Arias Resource Capital Fund LP, subscribed for C$3.63 million of the units and Philip Renaud, a director, subscribed for C$100,000.

Upon completion of the deal, Arias held approximately 155.32 million outstanding common shares, as well as approximately 144.78 million warrants. That represents about 50.86% of the total outstanding common shares.

Proceeds will fund mine development activities at the company's Cusi silver project and to build the cyanidation vats at its Malpaso facilities. Any remaining funds will be used for working capital.

Dia Bras' stock (TSX Venture: DIB) gained 1 penny, or 10.53%, to C$0.105. Market capitalization is C$21.3 million.

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