San West details credit line; Brett closes oversubscribed sale; Far East plans direct offering

By Stephanie N. Rotondo

Portland, Ore., Dec. 22 - The private placement market saw several deals getting done Tuesday. Of the new deals brought to market, some seem to be a last-ditch effort to raise funds before the year turns over.

San West Inc. gave new details of a $10 million credit line it had secured. The company said the three-year equity facility would allow it to grow its business.

Meanwhile, Brett Resources Inc. announced it had completed a private placement of units. Though the company originally intended to raise just C$5 million, the deal was oversubscribed, resulting in total proceeds of C$5.27 million.

Also, Far East Energy Corp. is planning a $4.9 million registered direct offering of units, the company said in a regulatory filing.

Rockcliff Resources Inc.'s private unit placement closed, the company said in a press release. That deal, like Brett Resources, was also oversubscribed, giving the company C$3 million in funding.

Among other settled transactions, CanAlaska Uranium Ltd. completed a unit placement, raising C$2.72 million.

San West details credit line

San West, a Palo Alto, Calif.-based off-road vehicle manufacturer, released new details regard a $10 million line of credit it had secured with Dutchess Opportunity Fund II LP.

The deal originally priced Dec. 18.

According to the terms of the three-year agreement, the investor will purchase common stock in tranches of up to 200% of the average daily trading volume for the three days preceding the draw request or for proceeds of $100,000.

"This significant financing arrangement gives San West and its subsidiaries access to growth capital, enabling us to accelerate our growth strategy and implement additional marketing initiatives to take full advantage of the increasing demand for personal motorsports vehicles, parts, services and accessories," commented Frank Drechsler, chief executive officer, in a press release.

"We expect to use this capital to further leverage our retail and online sales activities and further reinforce our brand in the industry. With this agreement in place, San West has reinforced its working capital position and is fully prepared to penetrate the off-road motorsports and personal watercraft industries," Drechsler said.

Added Douglas Leighton, a Dutchess managing partner: "We believe that San West's efforts to build a one-stop retail and online outlet for all facets of this growth industry represent a compelling investment for our fund."

San West's stock (OTCBB: SNWT) fell a penny, or 6.9%, to $0.135. Market capitalization is $15.5 million.

Brett settles stock sale

Brett Resources wrapped a C$5 million private placement of equity, according to a press release.

The deal originally priced at C$3.5 million on Dec. 9 and was lifted to C$5 million on Dec. 10. However, the deal was oversubscribed, resulting in total proceeds of C$5.27 million.

The Vancouver, B.C.-based company sold approximately 2.63 million flow-through shares at C$2.00 per share.

The proceeds will be used "to do some work programs on our Canadian projects," Tony Perri, manager of investor relations, told Prospect News. Specifically, the funds will go toward the Hammond Reef project, as well as some other Canadian assets.

Perri added that investors were "quite pleased" with the financing.

"There was quite strong demand," he said. "It was good to see the interest."

Brett's shares (TSX Venture: BBR) dropped 6 cents, or 3.57%, to C$1.62. Market capitalization is C$141 million.

Far East plans direct offering

Houston-based Far East Energy is seeking $4.9 million from a registered direct offering of units, according to a regulatory filing.

The company intends to sell 2.31 million units consisting of five common share and two warrants at $2.12 each. The warrants are exercisable at $1.25 for five years.

Proceeds will be used for drilling, completion and testing of coal bed methane wells in China and general corporate purposes. Settlement is expected by Dec. 28.

Far East's equity (OTCBB: FEEC) slipped $0.009, or 1.98%, to $0.446.

Far East Energy is a natural gas company focused on coal-bed methane projects.

Rockcliff deal oversubscribed

Rockcliff Resources took in C$3 million from a private placement of units, the company announced.

The non-brokered deal originally priced at C$2.5 million on Nov. 25.

Rockcliff issued 8 million flow-through units at C$0.25 each and 5 million working capital units at C$0.20 each.

The flow-through units consisted of one flow-through share and one half-share warrant. The working capital units contained one common share and one warrant.

Whole warrants are exercisable at C$0.40 for 18 months.

"Rockcliff is looking forward to an active 2010 winter drill program on its Snow Lake Project, located in central Manitoba," said Ken Lapierre, president and CEO, in a press release. "The proposed drill program will focus on Rockcliff's Rail and Reed properties and its 100% owned properties located in close proximity to the Lalor Deposit of HudBay Minerals Inc.

"We are very pleased with the investor response to our offerings and welcome new investors and the participation of previous investors including the MineralFields Group," he continued. "This is an important milestone in the growth of the company and we look forward to working with MineralFields Group as we develop our projects."

Rockcliff's equity (TSX Venture: RCR) ended unchanged at C$0.26. Market capitalization is C$7.74 million.

Rockcliff Resources is a Sudbury, Ont.-based resource company.

CanAlaska wraps unit placement

CanAlaska Uranium settled a previously announced private placement of units, taking in C$2.72 million.

The deal originally priced at C$3 million Nov. 17.

The Vancouver, B.C.-based uranium exploration company sold approximately 3.87 million flow-through units at C$0.21 per unit. Also, the company sold 10.89 million ordinary units at C$0.175 each.

The flow-through units contained one flow-through share and one half-share warrant. Whole warrants are exercisable at C$0.28 for 18 months.

The ordinary units consisted of one common share and one warrant. Those warrants are also exercisable at C$0.28, but for two years.

Proceeds will be used for exploration and for general corporate purposes.

Calls seeking comment were not returned Tuesday.

CanAlaska's stock (TSX Venture: CVV) dipped half a cent, or 3.13%, to C$0.155. Market capitalization is C$23.7 million.

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