Buchans wraps C$3.72 million; Wonder Auto gets $25.9 million; Continental Nickel negotiates C$7.83 million

By LLuvia Mares

New York, Dec. 12 -Buchans River Ltd. said the private placement was increased after the company received an unexpectedly high demand for shares. The company raised C$3.72 million in a private placement of units and stock.

"We did a half standard stock and half flow-through shares because they benefited our company more, plus there is a high demand for flow-through shares by Canadian investor," said David Felderhof, company vice president.

"We won't be looking into additional financing for at least another year. This money will tide us over for a while."

The deal priced for up to C$3.5 million on Nov. 21.

The company sold 3,485,673 flow-through common shares at C$0.58 per share for C$2,021,690.34 and 4,046,430 units at C$0.42 apiece for C$1,699,500.60.

It originally intended to sell 4,137,931 shares for C$2.4 million and up to 2,619,048 units for C$1.1 million at those prices.

Each unit consists of one common share and one half-share warrant, with each whole warrant exercisable at C$0.58 for 18 months.

The company's stock (TSX Venture: BUV) closed at C$0.36 on Tuesday and did not see any significant change on Wednesday.

Proceeds will be used for exploration and general corporate purposes.

Buchans River, a subsidiary of Royal Roads Corp., is a resource company based in Halifax, N.S.

Wonder Auto gets $25.9 million

Wonder Auto Technology, Inc. led U.S. news Wednesday, pocketing a $25.9 million private placement of stock.

The company sold 3 million shares at $8.65 per share to a group of institutional investors. No warrants were issued in the deal.

The company's shares (Nasdaq: WATG) closed at $9.72 on Wednesday, up $0.24 from Tuesday's $9.48 close.

The offering is expected to settle on Dec. 13.

Piper Jaffray & Co. was the placement agent in the transaction.

The company expects to use proceeds toward working capital and general corporate purposes.

Liaoning, China-based Wonder Auto designs, develops, manufactures and sells automotive electrical parts and suspension products.

Continental Nickel negotiates C$7.83 million

Continental Nickel Ltd. said its strong exploration team and solid record of successful drilling is what initially helped raise C$7.83 million in a private placement of shares.

"We had an opportunity to do a financing and get it locked up early in the new year," said Craig MacDougall, company and chief executive officer. "We had a lot of interest from people who wanted bigger positions in the company and were unable to get them, so we just took the opportunity to complete our financing and stock up our treasury for 2008."

The company will sell 2.61 million common shares at C$3.00 each on a bought-deal basis.

The deal is being conducted by a syndicate of underwriters led by Paradigm Capital Inc. and including PI Financial Corp. and Raymond James Ltd. The underwriters have a greenshoe for an additional 390,000 shares, or C$1.17 million.

Continental Nickel's stock (TSX Venture: CNI) closed at C$3.00 on Wednesday, down C$0.10 from Tuesday's C$3.10 close.

Proceeds will be used for exploration, acquisitions and general corporate activities.

Continental Nickel is a Toronto-based mineral exploration company focused on nickel sulphide exploration opportunities globally.

EnerGulf to sell C$8.8 million

EnerGulf Resources Inc. plans to raise a C$8.8 million private placement of units to use toward exploration and drilling.

"This financing is designed to provide funds for the upcoming drilling of the Kunene 1 and for other corporate opportunities and obligations," said Jeff Greenblum, company chairman, in a press release. "Our well managed capital structure allows us to pursue the enormous potential of block 1711 while continuing to maintain minimum dilutive effect for our shareholders. We look forward with great anticipation to the drilling of the Kunene 1."

The company will sell 8 million units at C$1.10 each. The units are comprised of one share and one warrant. The warrants are exercisable at C$1.35 each for one year.

EnerGulf's stock (TSX Venture: ENG) closed at C$1.20 on Wednesday, up C$0.04 from Tuesday's C$1.16 close.

Based in Houston, EnerGulf is an oil and natural gas exploration company.

Cardima raises $9 million

In the pharma division, Cardima, Inc. settled a $9 million private placement of stock with warrants.

"This transaction is a major milestone for the company and shows the continued faith of investors in the company and our products," said Tony Shum, in a press release. "With our strengthened balance sheet, we look forward to accelerating our plans to commercialize our suite of ablation and diagnostic products."

The company sold 18 million common shares at $0.50 each along with warrants for 2.7 million shares.

The warrants will be exercisable at $0.55 per share.

The company's stock (OTCBB: CADM) closed Wednesday at C$0. 45, down C$0.02 from Tuesday's C$0.47 close.

Cardima is a medical device company based in Fremont, Calif.

China-Biotics sells $25 million

Back in the pharma sector, China-Biotics, Inc. sold a $25 million convertible note to Pope Investment LLC.

"The company now has over $35 million cash (and no borrowings), which is sufficient to fund the construction of the new plant and the roll out of 300 new retail centers," said Jinan Song, company chairman and chief executive officer, in a press release.

"Money from the note issuance has been earmarked for the new plant construction. Our cash on hand now enables the company to take advantage of opportunities that may arise from time to time that may be strategic to the company's development."

The note matures in three years and bears interest at 4% per year. It is convertible into common stock at $12.00 per share.

China-Biotics' stock (OTCBB: CHBT) closed at $11.00 on Wednesday, down $0.99 from Tuesday's $11.99 close.

Interest will be payable at maturity.

The note will be mandatorily converted if China-Biotics achieves a net income of $60 million in fiscal year 2010.

China-Biotics is a Shanghai-based supplier of probiotics, bacteria used as dietary supplements and food additives.

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