Medoro plans C$6 million sale; Birchcliff aims for C$12.4 million; North Peace to issue units

By Stephanie N. Rotondo

Portland, Ore., June 9 - Tuesday's private placement marketplace was chock full of deals from the mining sector and several larger deals were also seen coming to market.

Also, the majority of companies entering the market on Tuesday were Canadian.

Medoro Resources Ltd. announced that it was aiming to raise C$6 million via a stock sale. The deal also includes a C$900,000 greenshoe.

Also in the mining sector, Birchcliff Energy Ltd. is looking to raise C$12.4 million by privately issuing equity. The company is also planning a C$49 million-plus public offering.

North Peace Energy Corp. will issue common share units in its effort to take in C$10 million. Proceeds will go toward funding one of the company's newer projects.

Across the Pond, Bowleven plc announced that it is planning a $110 million private placement. However, terms have yet to be announced.

Among other issuers, Counsel Corp. hopes to take in C$23.63 million via a common stock and preferred sale. The preferreds are also convertible into common stock.

Medoro plans equity sale

Medoro Resources arranged a C$6 million private placement of stock, the company announced.

The company plans to issue 50 million shares on a best-efforts basis. The shares will sell at C$0.12 per share.

Also, the deal includes a C$900,000 greenshoe, the equivalent to an additional 7.5 million common shares.

Funds raised through the transaction will be put toward the company's 2009 drilling and exploration program in Venezuela, among other things.

Settlement is expected before the end of June 2009.

Calls made to the company seeking comment went unreturned Tuesday.

Medoro's equity (TSX Venture: MRS) inched up 1 cent, or 6.67%, to C$0.16. Market capitalization is C$14.2 million.

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

Birchcliff aims for C$12.4 million

Birchcliff Energy announced a C$12.4 million private placement of common shares.

The Calgary-based company will sell 2 million shares at C$6.20 per share to Seymour Schulich, the renowned Canadian businessman and philanthropist.

Furthermore, Birchcliff said it would take in C$49.2 million via a bought deal. The company will issue 8 million shares, also at C$6.20 per share.

Proceeds will be used to pay down debt and to fund the company's capital program. Settlement is expected by June 30.

Calls made to the company seeking comment went unreturned Tuesday.

Birchcliff's equity (Toronto: BIR) increased by a dime, or 1.55%, to C$6.55. Market capitalization is C$744 million.

Burchcliff Energy is an oil and natural gas exploration company.

North Peace issues common-share units

Calgary-based oil sands company North Peace Energy plans to raise C$10 million by privately placing common share units, the company said.

North Peace will sell 18.2 million units containing one common share and one half-share warrant. Each unit will sell for C$0.55 per unit and each whole warrant is exercisable at C$0.75 for 18 months.

Proceeds will be used to expand the company's CSS pilot project. Settlement is expected by June 23.

North Peace's shares (TSX Venture: NPE) slipped 2 cents, or 3.28%, to C$0.59. Market capitalization is C$32.5 million.

Bowleven planning $110 million deal

Edinburgh, Scotland-based Bowleven, an oil and gas company, is planning a $110 million private placement of shares.

The deal has not yet priced. Merrill Lynch International and RBS Hoare Govett Ltd. are acting as joint bookrunners.

"Bowleven commences this placing from a robust foundation," said Kevin Hart, chief executive, in a statement. "The work of our technical team, and the independent endorsement of the Tracs report, provide investors with a strong basis for confidence. The funds we are securing will assist Bowleven to continue to progress the value of the company's portfolio for its shareholders."

Bowleven's shares (London: BLVN) closed down 6.25p, or 8.47%, to 67.50p.

Counsel to sell stock, preferreds

Communications and real estate company Counsel said it would raise C$23.63 million through a private placement of common stock and preferred shares in a press release.

Under the terms of the deal, the company will sell approximately 16.13 million common shares at C$0.75 per share, for total proceeds of C$12.1 million. Approximately 6 million convertible series B preferred shares will also be sold at C$1.92, for total proceeds of C$11.54 million.

The preferreds carry a 6% coupon and are convertible into common stock at C$0.75 per share after one year.

"We are very pleased to have received binding subscriptions at $0.75 per share, a significant premium to the recent trading price of Counsel's common shares," said Allan Silber, chairman and chief executive, in the release. "We see this as a vote of confidence in the company's strategy and direction. The funds raised will provide Counsel with more financial flexibility."

Toronto-based Counsel's stock (Toronto: CXS) gained a penny, or 1.75%, to C$0.58. Market capitalization is C$26.9 million.

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