GLV to issue voting shares; Xcite stock sale settles; Trelawney deal oversubscribed, lifted

By Stephanie N. Rotondo

Portland, Ore., March 18 - As has been the trend over the week, Canadian issuers continued to dominate the PIPE market Thursday and a smattering of double-digit deals were announced.

GLV Inc. announced a private placement of voting shares for proceeds just over C$40 million. The deal is being underwritten.

Meanwhile, Xcite Energy Ltd. said it had completed a C$38.42 million placement of stock. The company will use the funds for its Bentley Field project.

Trelawney Mining and Exploration Inc. increased the amount of a previously announced private placement of common stock. The company now intends to raise C$13 million and could raise another C$1.95 million if the over-allotment option is fully subscribed.

Formation Metals Inc. plans to raise C$8.63 million from a placement of units. The financing is non-brokered.

And Quetzal Energy Ltd. said it raised C$8.2 million from a placement of units. Proceeds will be used, in part, for exploration.

Alderon Resource Corp. will take in C$5 million from a private placement of equity. According to a company executive, there is only one investor.

GLV to issue voting shares

GLV, a Montreal-based water treatment, pulp and paper production company, brought a C$40.05 million private placement of subordinated voting shares to market.

The company is looking to sell 4.5 million of the shares at C$8.90 each on a bought-deal basis.

Proceeds will be used for general corporate purposes. Settlement is expected by March 31.

Calls seeking further comment were not returned Thursday.

GLV's stock (Toronto: GLV.A) fell 6 cents, or 0.65%, to C$9.11. Market capitalization is C$341 million.

Xcite stock sale settles

Xcite Energy settled a C$38.42 million private placement of ordinary shares, according to a press release.

The company issued approximately 61.92 million of the shares at C$0.62 each.

"This fund raising represents a significant step forward for the company in the overall achievement of the development plan for the Bentley field," Richard Smith, chief executive officer, said in the release. "We have successfully obtained commitment from our Bentley partners, BP, Transocean/ADTI/ChallengerMinerals, AMEC and Fugro in the last few months and, now that we have the finance in place, we have the resources to drill the 9/3b-R well expected to commence during the summer of 2010."

Any funds left over from the development of Bentley Field will be used for general working capital.

Xcite's equity (TSX Venture: XEL) gained 7 cents, or 11.29%, to C$0.69. Market capitalization is C$42.61 million.

Xcite Energy is a Tortola, Virgin Islands-based oil exploration and development company.

Trelawney deal oversubscribed, lifted

Trelawney Mining increased its previously announced private placement of common stock to C$13 million from C$8 million.

The deal originally priced March 12 and also included a C$1.2 million greenshoe.

Trelawney said in a press release that the placement agents had informed the company that the deal was oversubscribed, which resulted in the upsizing. The amended deal will also include a C$1.95 million greenshoe.

The company will sell 12.38 million shares at C$1.05 each.

Proceeds will be used for exploration and development work at the company's Chester Property as well as for working capital.

Trelawney's shares (TSX Venture: TRR) dipped 4 cents, or 3.17%, to C$1.22. Market capitalization is C$50.4 million.

Trelawney Mining is a Toronto-based gold mining company.

Formation to raise C$8.63 million

Formation Metals is seeking C$8.63 million via a non-brokered private placement of units, the company said in a press release.

The Vancouver, B.C.-based metals mining company will sell 5.75 million of the units at C$1.50 each. The units will contain one common share and one half-share warrant. Whole warrants are exercisable at C$2.00 for two years.

Proceeds will be used for general corporate and working capital purposes. Settlement is expected by April 30.

Calls seeking comment were not returned Thursday.

Formation's shares (Toronto: FCO) slipped 4 cents, or 2.68%, to C$1.45. Market capitalization is C$49.7 million.

Quetzal wraps unit placement

Quetzal Energy took in C$8.2 million from a private placement of units, according to a press release.

The deal originally priced on Feb. 25 for C$6.3 million. The financing also included a C$2.8 million greenshoe.

Quetzal sold 58.8 million units at C$0.14 per unit. Each unit consists of one common share and one warrant. The warrants are exercisable at C$0.20 until Oct. 26, 2011.

Proceeds will be used for exploration and development work as well as for general corporate purposes.

The company did not return requests for comment on Thursday.

Quetzal's stock (TSX Venture: QEI) improved half a cent, or 3.85%, to C$0.135. Market capitalization is C$24.7 million.

Quetzal Energy is a Toronto-based energy company.

Alderon seeks drilling dollars

Alderon Resource intends to raise C$5 million from a private placement of equity.

The company will sell approximately 1.81 million flow-through shares at C$2.75 per share.

"The funds raised from the flow-through private placement will be used by Alderon for exploration expenditures on its properties and specifically will be used to conduct a drilling program on the Kamistiatusset iron ore project, which will constitute Canadian exploration expenditures and will be renounced for the 2010 taxation year," the company said in a press release.

Mark J. Morabito, president and chief executive officer, told Prospect News that the deal is expected to close next week.

"It's only one subscriber, one institution," he said, noting that it was a "flow-through fund" that was investing.

Morabito also said he was pleased with the terms of the financing, noting that it was "at a nice premium to the market."

Alderon's shares (TSX Venture: ADV) jumped 28 cents, or 12.67%, to C$2.49. Market capitalization is C$30.8 million.

Alderon Resource is a Vancouver, B.C.-based iron ore exploration and development company.

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