InterOil plans $70 million direct offering; First Bauxite gets financing; Galleon sells stock

By Stephanie N. Rotondo

Portland, Ore., June 4 - Several large deals were brought to the private placement market on Thursday, including a $70.4 million registered direct offering from InterOil Corp.

The company plans to sell equity to "a number of institutional investors," according to a press release. Proceeds will be used for a variety of purposes, including development of the Elk/Antelope gas and condensate fields.

Meanwhile, First Bauxite Corp. announced a plan to raise C$8 million. The company will issue convertible notes to raise the funds. The offering also includes an option for an additional $20 million.

Galleon Holdings plc raised £3.85 million in a private placement of stock. The London-based firm plans to use proceeds to advance its development strategy, particularly in China.

InterOil plans direct offering

The Woodlands, Texas-based InterOil plans to take in $70.4 million through a registered direct stock offering, according to a press release.

The company will sell approximately 2.01 million shares of common stock at $34.98 per share to "a number of institutional investors," the release said. The price represents a slight premium to the company's stock closing price as of June 3.

Proceeds will be used to develop the Elk/Antelope gas and condensate fields, as well as for development of a proposed liquefied natural gas facility in Papua New Guinea. The funds will also go toward repayment of up to $9 million on the company's credit facility with Overseas Private Investment Corp.

InterOil's shares (NYSE: IOC) gained $2.73, or 7.81%, to $37.70.

First Bauxite gets financing

First Bauxite announced it inked a financing agreement with Pacific Road Resources Funds for C$8 million.

First Bauxite will issue five-year unsecured convertible notes to Pacific Road. The notes carry no interest rate and are convertible into common stock at an exercise price of C$0.83.

Also, the agreement includes a $20 million greenshoe. Pacific Road may exercise the option once First Bauxite has completed a pre-feasibility study of its Bonasika mine.

Proceeds from the fundraising will go toward completing the study, as well as for purchasing new drill rigs and for additional drilling at its Bonasika and Waratilla-Cartwright properties in Guyana.

"First Bauxite is a company with great growth potential," stated Yannis Tsitos, president of First Bauxite, in a statement. "Securing financing to advance the development of our licenses in Guyana was a priority objective in our business plan following the approval of the Bonasika acquisition by the [Toronto Stock] Exchange and the commencement of resource outline drilling at the Bonasika refractory grade bauxite deposits in the autumn of 2008.

"We are extremely pleased that an international private equity investor of the caliber of the Pacific Road Resources Funds has recognized the true value of our company and its projects. In such difficult economic times, securing a major financing of this size and phased structure, is a significant milestone that will enable the company to maintain its momentum, complete the pre-feasibility study at Bonasika and further develop its properties. Most importantly, it is not only about raised funds; nominees of Pacific Road Resources Funds with significant global mining experience will become part of our board, and we are looking forward to a true partnership that will enhance the value of our projects and maximize the returns for all of our shareholders," Tsitos said.

Added Paul Espie, Pacific Road's managing director: "We are pleased to be involved in the project and associated with the experienced and professional First Bauxite team. We look forward to advancing their project into production and positioning First bauxite to become an important supplier of a high value product to industrial consumers in the Americas and Europe."

First Bauxite's equity (TSX Venture: FBX) moved up 11 cents, or 11.46%, to C$1.07.

First Bauxite is a Vancouver, B.C.-based natural resources company engaged in the exploration and development of bauxite deposits.

Galleon sells ordinary shares

Galleon Holdings, a London-based entertainment media company, said it raised approximately £3.85 million via a private placement of stock.

Under the terms of the transaction, Galleon sold approximately 29.62 million ordinary shares at 13p per share. That represents about 21.2% of the company's enlarged issued share capital, according to a press release.

Proceeds will be used to fund the company's growth plan, particularly in China.

"Specifically Galleon will extend its presence in the online gaming market, expand its existing mobile service provision business and produce entertainment content to fill its distribution pipeline in Chinaand onwards to the Rest of the World," the release said.

"Galleon is experiencing a period of rapid growth and this placing will help enable us to capitalize on the current market opportunity," said Stephen Green, chief executive officer of Galleon Holdings, in the statement. "Online gaming is one of the fastest growing revenue generating activities in the media sector, both in China and the Rest of the World. Our multi-platform approach creates large online audiences and we are well positioned to create a new revenue stream with online games."

Galleon's stock (London: GON) dropped 1p, or 6.06%, to close at 15.5p.

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