Maple Leaf wraps C$70 million sale; G4G delays offering; Denison, Great Plains plan flow-through deals

By Kenneth Lim

Boston, Dec. 5 - Maple Leaf Foods Inc. wrapped up a C$9.5 million sale of stock and warrant units to boost its balance sheet and fund general purposes.

G4G Resources Ltd. will delay a planned C$1 million unit placement, citing market conditions.

Denison Mines Corp. plans to raise C$11.99 million through a sale of flow-through shares to fund its exploration projects, while Great Plains Exploration Inc. announced a C$4 million sale of stock for its own projects.

Maple Leaf sells units

Maple Leaf Foods completed a C$70 million private placement of stock and warrant units.

The company sold about 7.37 million units at $9.50 apiece. Each unit comprises one subscription receipt for Maple Leaf Foods common shares and 0.4 common share purchase warrants. Each subscription receipt entitles the holder to one common share on Aug. 4, 2009. Each whole warrant is exercisable at $9.50 per share until Dec. 16, 2010.

Maple Leaf Foods common stock (TSX: MFI) closed at C$10.11 on Friday, lower by 0.59% or C$0.06. The company has a market capitalization of C$1.5 billion.

The Ontario Teachers Pension Plan Board agreed to buy at least about 1.74 million units, while the McCain Capital Corp. committed to at least about 1.69 million units. The Ontario Teachers Pension Plan Board also agreed to purchase any additional units not allocated to other buyers.

Proceeds will be used for general corporate purposes.

Maple Leaf Foods is a Toronto-based food processing company.

"As the company recovers from the effects of high commodity prices and the recent product recall, we believe that strengthening the balance sheet is a prudent measure, in the face of volatile and uncertain capital markets," Maple Leaf Foods chief financial officer Michael Vels said in a statement. "The transaction has been structured to provide flexibility to Maple Leaf Foods, and demonstrates the firm support of the company's key shareholders."

G4G puts brakes on placement

G4G Resources is postponing a planned C$1 million non-brokered private placement of units.

"The delay is based on the current economic climate and financial markets which have affected the availability of funds from potential investors," the company said in a press release. "G4G plans to complete the non-brokered private placement at a later date."

G4G had planned to sell units of one common share and one warrant at C$0.25 per unit. Each warrant would have a strike price of C$0.45 for two years. The expiration of the warrants could have been accelerated by the company if its stock trades at or above C$0.70 for at least 20 straight days.

Shares of G4G (TSX: GXG) closed unchanged at C$0.06 on Friday. The company has a market capitalization of C$971,000.

Proceeds would have been used to finance exploration and development joint ventures, to identify further opportunities and for working capital.

G4G is a Vancouver, B.C.-based company with projects in iron ore, iron production and alternative fuels.

Denison eyes C$11.99 million

Denison Mines announced an C$11.99 million private placement of shares on a bought-deal basis.

The deal involves 10.9 million flow-through common shares at C$1.10 apiece. Denison common stock (TSX: DML) declined by 10% or C$0.08 to close at C$0.72 on Friday.

Denison has a market capitalization of C$136.81 million.

Proceeds will be used to advance the company's Canadian exploration properties.

Denison is a Toronto-based uranium exploration, development, mining and milling company.

Great Plains seeks flow-through capital

Great Plains Exploration plans to raise C$4 million through a private placement of its common stock.

The company will sell up to 10 million flow-through common shares at C$0.40 each on a best efforts basis. Great Plains, a Calgary, Alta.-based oil and gas exploration company, saw its common stock slip 8.51% or C$0.02 to close at C$0.215 on Friday.

Some company insiders, including directors, officers and employees, may take part in the offering on the same price, terms and conditions.

Great Plains has a market capitalization of C$17.79 million.

Proceeds will be used to fund ongoing exploration activities.

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