Dorato to raise C$5 million; Advanced Cell gets credit facility; Cairn wraps £116.13 million PIPE

By Stephanie N. Rotondo

Portland, Ore., March 11 - Most PIPE deals coming to market on Wednesday came from the mining sector, though other industries were also represented.

Dorato Resources Inc. announced that it was planning to raise C$5 million though a private placement of units. A company spokesperson said the units, which include warrants, are a "common occurrence" in PIPE financings.

Meanwhile, Advanced Cell Technology Inc. entered into a $5 million credit facility agreement. Funds can be drawn from the facility by issuing convertible preferred stock.

Cairn Energy plc announced a £116.13 million private placement of shares early Wednesday, and within a few hours, the deal was done. The company plans to use the funds for financial flexibility.

Back in the mining sector, both Alhambra Resources Ltd. and Dia Bras Exploration Inc. said they were planning to raise funds through private placements. Alhambra plans to issue promissory notes for C$1 million, while Dia Bras is aiming for C$1.85 million through the sale of units.

Dorato to raise C$5 million

Dorato Resources, formerly known at Quest Ventures, is planning to raise C$5 million though a private placement of units.

The Vancouver, B.C.-based company will issue 10 million unit at C$0.50 per unit, according to a press release. The units consist of a common share and a half-share warrant exercisable at C$0.65 for two years.

The terms also include a provision that the warrants can expire sooner than two years if the company's stock has a volume weighted average closing price of C$2.00 for 20 consecutive trading days. If that occurs, the warrants will expire 30 days after the company notifies shareholders.

"The market dictates what pricing is going to be," Steve Stakiw, the company's manager of investor relations, told Prospect News. "Obviously we want to get the highest pricing possible, but we are happy with the pricing we got."

Stakiw also said that the addition of warrants was a "common occurrence" in these types of financings, adding that the inclusion adds "further upside" for investors.

"It's a faster track to go to get the financing done," he explained as the company's reason for going private over public. He added that the company hopes to complete the deal by the end of the month.

In its statement, the company said that Franco-Nevada Corp. had already agreed to purchase 2 million units for C$1 million.

Dorato will use proceeds from the transaction for exploration of its Cordillera Del Condor Gold-Copper Belt in northwest Peru, which is adjacent to the Ecuadorian border.

Doroto's equity (TSX: DRI) ended steady on Wednesday at $0.54.

Advanced Cell's loan

Advanced Cell Technology entered into definitive agreements for a $5 million credit facility, according to a press release.

Under the agreement, the Alameda, Calif.-based company can draw down the facility by issuing series A-1 convertible preferred stock. The preferreds pay an annual in-kind dividend of 10% and mature in four years. The shares are convertible into common stock at $0.75 per share.

Proceeds form the facility will be used "exclusively for the development of the company's retinal pigment epithelium cells program for the treatment of diseases of the eye," the company said in the release. "Advanced Cell believes that the proceeds will be sufficient for the company to file an IND for its RPE program this summer, and will allow the company to complete both phase 1 and phase 2 studies in humans."

"We are excited that we have secured the financing necessary to move our RPE program through the clinic, and are gratified that a life sciences fund has recognized the potential of this program," said William M. Caldwell, chief executive officer and chairman, in the release.

"Diseases of the eye affect more than 30 million people worldwide and represents a $28 billion market. We believe that this funding will allow us to advance our proprietary technology, which has the potential to generate stable cell lines, through key stages of clinical development, generating significant value for shareholders."

Advanced Cell's stock (Pink Sheets: ACTC) gained $0.005, or 4.17%, to $0.125 on Wednesday. Market capitalization is $12.8 million.

Cairn wraps placement

Edinburgh, Scotland-based Cairn Energy announced - and later settled - a £116.13 million private placement of shares on Wednesday.

The company sold 6.5 million ordinary shares at 1,775p each. No warrants were included in the deal.

Cairn, an oil and gas company, said that proceeds would be used to maintain financial flexibility, according to a press release.

"Cairn is well-positioned to deliver value from its world class fields in Rajasthan where first production will commence in 2009," said Sir Bill Gammell, chief executive officer, in the release. "At the same time exploration efforts continue across our exciting acreage in Greenland where we are looking at options to accelerate drilling, possibly into 2010.

"The funds raised from the placing announced today, along with our current debt facilities, cash resources and cash flow from operations, enable us to retain the financial and operational flexibility necessary for our next phase of growth and the continued delivery of shareholder value."

Cairn's stock (London: CNE) closed at 1,790p Wednesday.

Alhambra, Dia plan deals

Alhambra Resources announced that it had arranged a C$1 million private placement of promissory notes, while fellow mining company Dia Bras announced a C$1.85 million placement of units.

Under the terms of the Alhambra deal, the Calgary, Alta.-based company will issue one-year 20% subordinated secured promissory notes. Also, warrants for 8 million shares will be issued, with half exercisable at C$0.10 per share and the other half at C$0.20 per share.

Meanwhile, Dias Bras will sell units consisting of one common share and one warrant at C$0.055 per unit. The warrants are exercisable at C$0.11 for one year.

Alhambra's stock (TSX: ALH) gained 1.5 cents, or 33.33%, to $0.06. Dia Bras' equity (TSX: DIB) was unchanged at $0.06.

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