Molycor raises C$1 million in minutes; Second Wave prices placement; Dynasty upsizes stock sale

By Kenneth Lim

Boston, Feb. 28 - Molycor Gold Corp. took just minutes to finalize a C$1 million placement that should keep it exploring in Nevada for at least a year, its chief executive said.

Meanwhile, Second Wave Petroleum Ltd. described a C$23 million financing package as a value-added deal for involved parties.

Dynasty Metals & Mining Inc. upsized its stock placement to C$18.75 million, and the company said the move was a response to strong institutional demand.

Molycor raises C$1 million

Molycor Gold said it will sell 5,555,555 units of one share and one warrant at C$0.18 apiece to Sextant Strategic Opportunities Hedge Fund LP, an existing investor, as part of a non-brokered private placement.

The warrants are exercisable at C$0.22 per share for two years. Molycor common stock (TSX: MOR) closed at C$0.18, up by C$0.005, on Thursday.

Molycor, a White Rock, B.C.-based gold and molybdenum mining company, said the proceeds of the deal will be used for general working capital and to explore its manganese and gold properties in Nevada.

The placement comes just one week after Molycor announced the discovery of high-grade manganese in its Nevada property.

"It's interesting," Molycor chief executive Larry Reaugh said. "Sextant Capital approached us to do the placement after we discovered a very high-grade manganese showing in Nevada. This manganese wasn't your typical black or red manganese, it was kind of a reddish, muddy brown, and it came back at 35% [grading] over 15 feet, which constitutes a very important discovery.

"In three minutes the financing was done."

Sextant is a familiar investor that has taken stock in previous placements, Reaugh said.

"We were negotiating for between 18 cents and 20 cents, and seeing how Sextant has been a very loyal investor we agreed to set the price at 18," he said. "If they were grinding us they'd have asked for a further 25% discount from 18, but they didn't."

Reaugh said the placement is important for Molycor's work in Nevada.

"This will cover us probably for most of our exploration work next year in Nevada," he said.

If Molycor finds more success in Nevada, Reaugh is hoping for more investors like Sextant.

"We probably will hear from more investors if we start pulling more holes, because you need to sell some continuity," he said. "But I imagine this has put us on quite a few radar screens."

Second Wave prices placement

Second Wave Petroleum said it will raise up to C$10 million in a private placement of stock.

The Calgary, Alta.-based junior oil and gas company said it will sell up to 40 million class A shares at C$0.25 apiece to Brookfield Bridge Lending Fund Inc., the controlling shareholder of the company that holds about 60% of the issued and outstanding class A shares.

The transaction was part of an earlier announced acquisition of Milagro Energy Inc. As part of the financing for the acquisition, Second Wave also issued C$13 million of convertible junior secured debentures to Brookfield Bridge. The proceeds of the financing deal will be used to eliminate Milagro's net debt upon the completion of the takeover.

The stock placement price of C$0.25 per share was a 4% discount to the C$0.26 closing price of Second Wave class A shares (TSX: SCS.A) on Wednesday. Second Wave stock closed at C$0.275 on Thursday.

"It's basically part of our acquisition," chief executive Robert F. Goods said of the stock-and-convertible financing. "It's a convenient way of basically providing funding for the acquisition without having an effect upon the banklines that are already in place for things like our capital budget."

He said the pricing of the stock and convertibles would not be so dilutive in the long term.

"It's an accretive transaction," Goods said. "So at this point in time our view was that at 25 cents it's a value-added transaction."

Dynasty upsizes placement

Dynasty Metals & Mining said its upsized stock placement will give it the flexibility to pursue further exploration and last through the company's transition toward production.

Dynasty, a Vancouver, B.C.-based mining company, increased the size of its placement to C$18.75 million from C$11.25 million.

The company will now sell 2.5 million shares at C$7.50 each, compared with the previous plan for 1.5 million shares at the same price. Of the 2.5 million shares, 1 million will be sold to Sprott Asset Management.

"All the shares went to institutional investors," company representative Murray Oliver said. "It puts us in a good position. We had money before this, but this basically allows us to do some other things on the exploration side."

Murray said the new capital should be enough for the company to enter into production at its Zaruma project. But he said it was not possible at the moment to know how long the cash will last beyond that.

"It's kind of a moving target right now," he said. "We have roughly C$30 million in the bank right now. As soon as we go into production, which will be in Q2, we will hopefully start accreting cash. But it will definitely take us through into production and beyond."

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