Silver Recycling plans more stock sales; Elixir, Benchmark plan placements; Seaview closes deal

By Kenneth Lim

Boston, May 29 - The Silver Recycling Co. Inc. said it raised C$1.59 million worth of units to help fund two key acquisitions, and the company could be looking to raise significantly more.

Elixir Petroleum Ltd. announced a A$9.05 million private stock placement and said it plans to aggressively pursue new projects with a stronger balance sheet.

Seaview Energy Inc. said it sold C$6 million worth of shares in a private deal, while Benchmark Energy Corp. said it will sell C$4 million of units in a private offering.

Silver Recycling to raise more

Silver Recycling said it sold C$1.59 million worth of stock-and-warrant units in a non-brokered private placement.

The company sold about 2.6 million units of one common share and one half-share warrant at C$0.60 per unit. Each whole warrant is exercisable at C$0.85 for one year. Silver Recycling common stock (NEX: TSR.H) closed at C$0.64 on Thursday, unchanged from its previous close.

Silver Recycling said it will use the proceeds to pay a US$1.4 million balance on its acquisition of Pyropure Inc. and Sun Valley Film Wash Inc. The remainder of the proceeds will be used for general working capital.

Silver Recycling is a Vancouver, B.C.-based company that is acquiring silver scrap recycling businesses in North America.

"These acquisitions make Silver Recycling the only publicly traded silver recycling company in North America and provides a platform for expansion," Silver Recycling president Don Holstrom said in a statement.

The acquisitions and the placement that helped to finance them are a key initial step in Silver Recycling's growth plans, Holstrom told Prospect News.

"It's really the launch of our business plan model," he said. "Our plan is to grow into a substantial company in the silver scrap recycling business in North America."

Holstrom, who said he was satisfied with the pricing of the placement, added that Silver Recycling could return to the market to raise more capital later in the year.

"Our plan is to secure the next couple of acquisitions, which we've been working on, and we'll be going back to the market if we need to," he said. "Our goal will be to go back to the market in the third and fourth quarter of this year with a substantial equity financing ... around C$14 million to C$16 million."

Elixir strengthens balance sheet

Elixir Petroleum said its latest capital-raising plan should strengthen its balance sheet and help it to pursue new projects.

Elixir said it is selling 33.5 million ordinary shares at A$0.27 each to raise A$9.05 million. Elixir common stock (ASX: EXR) slipped 12.5%, or A$0.04, to close at A$0.28 on Thursday.

The placement will comprise two tranches. The first tranche consists of 24.15 million shares for A$6.52 million, while the second tranche will involve 9.35 million shares worth A$2.52 million.

The company is also offering a rights issue at A$0.27 per share on a one for every eight shares held basis. The rights offering is expected to raise about A$5.44 million.

Elixir, an oil and gas exploration company based in Subiaco, Western Australia, said proceeds will be used for exploration, development, to fund the company's 35% working interest share of the 2008 work program on Block SL-4 in offshore Sierra Leone, to support its recent North Sea licensing applications and for general working capital purposes.

Also on Thursday, Elixir said it appointed Blue Oar Securities plc as its nominated adviser and broker to the AIM market. Blue Oar also owns Australian corporate advisory firm Inteq Ltd.

"We are delighted with the support we have received from supporting brokers and our shareholders," Elixir chairman Jon Stewart said in a statement. "We are pleased to provide an opportunity for existing shareholders to participate in this fundraising through the entitlements issue. This financing will help the company meet a number of strategic and operating objectives. It is management's intention to use Elixir's new balance sheet strength, together with its growing cashflow from production, to take advantage of existing opportunities within its portfolio and to aggressively pursue other new projects."

On the Blue Oar appointment, Stewart added, "We are also very pleased to have retained Blue Oar Securities plc and Inteq as our advisers on the AIM market and the ASX. We consider our balanced portfolio of producing assets, appraisal interests and high impact exploration an attractive and relevant opportunity for the U.K. investment market and we intend to develop that market in conjunction with our efforts in the Australian investment market"

Seaview wraps C$6 million deal

Seaview Energy said it closed a C$6 million private placement of stock after fully exercising the over-allotment option.

Seaview's deal priced for C$5 million with a C$1 million greenshoe on May 6.

The deal comprised about 2.8 million flow-through class A shares at C$2.15 apiece. Of those shares, 466,000 were part of the greenshoe. Seaview class A common stock (TSX: CVU.A) closed at C$2.62 on Thursday, lower by 4.73%, or C$0.13.

Seaview, a Calgary, Alta.-based oil and gas exploration company, said it will use the proceeds for exploration projects.

Benchmark to sell units

Benchmark Energy said it is selling C$4 million of stock-and-warrant units in a non-brokered private placement.

The company is selling 10 million units at C$0.40 per unit. Each unit will comprise one common share and one half-share warrant. Each whole warrant is exercisable at C$0.65 for one year.

Benchmark common stock (TSX: BEE) finished at C$0.365 on Thursday, lower by 15.12%, or C$0.065.

Benchmark, a Calgary, Alta.-based oil and gas exploration company, said it will use the proceeds to fund its obligations under a joint development agreement with Infinity Oil Ltd. and for working capital.

Under the agreement, Benchmark will take a 35% participating interest in the Buena Vista Block in Colombia.

Existing shareholders of Infinity are expected to subscribe for at least C$1.5 million of the offering, while insiders of Benchmark plan to buy up to 25% of the offering, Benchmark said in a news release.

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