Erdene Gold settles C$4.66 million for alliance; Arsenal wraps C$2 million in tranches; Great Western upsizes

By LLuvia Mares

New York, Dec. 14 - Erdene Gold Inc. said it raised C$4,657,100 in a non-brokered private placement of shares to help fund its agreement.

"This is to fund our obligation to our alliance with Xstrata on the Donkin Coal project in eastern Canada," said Ken MacDonald, company chief financial officer and vice president of business strategy.

"As a Canadian corporation, we were able to raise flow-through funds, so under our agreement with Xstrata we agreed to raise $10 million and with this settlement, it will bring us just over $10 million."

The company sold 3,326,500 flow-through common shares at C$1.40 per share in two tranches. It originally intended to sell up to 3 million shares.

The deal priced for C$4.2 million on Nov. 29.

The company's stock (Toronto: ERD) closed at C$1.10 on Thursday and did not see any change on Friday.

Proceeds will be used for exploration and evaluation of the Donkin Coal Resource Block located in Cape Breton, N.S.

Erdene Gold is a mineral exploration company based in Halifax, N.S.

Arsenal raises C$2 million

In order to continue further exploration, Arsenal Energy Inc. took in C$2 million in the second and final tranche of a C$3.39 million private placement of shares. It raised C$1.39 million in the first tranche of the deal, which priced on Nov. 21 for up to C$4 million.

"We did it in tranches because it was taking longer to raise the money than we originally thought," said Tony van Winkoop, company president and chief executive officer.

"At the end of the original close we were supposed to have raised the total amount but we hadn't, so we did it in two separate tranches."

The company sold 4,644,871 flow-through common shares in this tranche at C$0.43 apiece. It sold 3,245,279 shares in the first tranche on Nov. 30 and 7,890,150 shares total. It originally intended to sell up to 9,302,326 shares at that price.

Arsenal's stock (Toronto: AEI) closed at C$0.3450 on Friday, down C$0.0200 from Thursday's C$0.365 close.

Emerging Equities Inc. was the agent.

Proceeds will be used for exploration.

Calgary, Alta.-based Arsenal is an oil and natural gas exploration company.

Great Western increases to C$3.28 million

As a company always on the lookout for opportunities, Great Western Minerals Group Ltd. announced it increased a non-brokered private placement of shares to raise C$3.28 million since the offering had been over-subscribed.

"We did it mainly because it was over-subscribed and we can certainly use more flow-through," said Jim Engdahl, company president and chief executive officer, about the increase.

"We thought we would be fine at the $3 million amount however the demand was strong enough that we felt it was worthy enough to increase, so instead of cutting back anybody, we just increased the amount."

The deal priced for C$3 million on Dec. 10.

The company now plans to sell 8,187,500 flow-through common shares at C$0.40 each, increased from 7.5 million shares.

Great Western's stock (TSX Venture: GWG) closed at C$0.345 on Friday, down C$0.0050 from Thursday's C$0.035 close.

Proceeds will be used for drilling and construction.

Settlement is expected Dec. 18.

Based in Saskatoon, Sask., Great Western Minerals is a gold, uranium and diamond exploration company.

FairWest gets C$1.46 million

Another company starting the weekend with funds in its pockets, FairWest Energy Corp. took in C$1.46 million in a private placement of flow-through shares.

The deal priced on Dec. 5.

The company sold 6.5 million flow-through shares at C$0.225 apiece.

FairWest's stock (Toronto: FEC) closed at C$0.16 on Thursday and did not see any significant change on Friday.

Proceeds will be used for working capital requirements.

FairWest is an oil and natural gas company based in Calgary, Alta.

North American plans $15.5 million

In the technology sector, North American Scientific, Inc. led news after it announced plans for a $15.5 million private placement of stock and warrants.

The company plans to sell 63,008,140 common shares at $0.246 apiece along with warrants for 3,150,407 shares.

The company's stock (Nasdaq: NASI) closed at C$0.30 on Friday, up C$0.10 from Thursday's C$0.20 close.

The warrants are exercisable at $0.246 for seven years.

Three Arch Partners IV, LP and affiliated funds will invest $10 million; SF Capital Partners Ltd. will invest $2.5 million; and CHL Medical Partners III, LP and an affiliated fund will invest $3 million.

Settlement depends on shareholder approval.

CIBC World Markets Corp. is the placement agent.

North American Scientific is a radiation technology company based in Chatsworth, Calif.

First Montauk raises $2 million

In other news, First Montauk Financial Corp. obtained a $2 million convertible secured note facility from AEFC-FMFK Investment Corp.

"We are pleased to complete this transaction with AEFC-IC," said Victor K. Kurylak, president and chief financial officer, in press release. "The credit facility will provide us with additional working capital to fund the continued growth and development of our company."

First Montauk immediately drew down $1 million under the facility. The company may require AEFC to invest an additional $1 million beginning on Feb. 1, 2008.

The notes mature on Dec. 31, 2008 and bear interest at 10% per year. They will be convertible into common stock at $0.35 per share, beginning on July 1, 2008.

The company's stock (OTCBB: FMFK) C$0.025 Friday, down C$0.03 from Thursday's C$0.28 close.

Interest will be payable monthly.

First Montauk may prepay the note at any time before July 1, 2008, subject to an escalating prepayment penalty. If it prepays the note, First Montauk will issue a warrant with a strike price of $0.35 per share.

If First Montauk does not draw down the full $2 million and the note has not been prepaid by July 1, 2008, the company will issue a warrant exercisable for one share for each dollar available but not drawn down under the agreement. That warrant will also have a strike price of $0.35 per share.

First Montauk is a securities broker-dealer based in Red Bank, N.J.

Purple takes $3.02 million

Purple Beverage Co. raised $3.02 million from a private placement of stock and warrants.

"We are pleased that we have succeeded in our initial financing objective that will allow us to strengthen our distribution of Purple and to continue its roll-out," said Ted Farnsworth, company president and chief executive officer, in a press release.

"In Purple, we have harnessed the power of the planet's most powerful antioxidant-rich fruits into an all-natural, no sugar added beverage that combines the exotic acai berry with six other antioxidant-rich fruits, including black cherry, pomegranate, blackcurrant, purple plum, cranberry and blueberry."

The company sold 6.03 million shares at $0.50 each along with warrants for 6.03 million shares, exercisable at $2.00 per share.

Purple's stock (OTCBB: REDZ) at $1.70 on Thursday and did not see any change on Friday.

Proceeds will be used for working capital and general corporate purposes.

Purple is a beverage manufacturer based in Fort Lauderdale, Fla.

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