Chapleau gets C$2.5 million injection from Kinross; Altus, Longford, FirstGrowth plan placements

By Kenneth Lim

Boston, June 18 - Chapleau Resources Ltd. said it secured a C$2.5 million investment from Kinross Gold Corp.

Altus Group Income Fund announced plans to sell C$41.06 million worth of units to reduce its debt.

Meanwhile, Longford Energy Inc. is raising C$15 million of stock-and-warrant units through a private placement, and FirstGrowth Exploration & Development Services Corp. is eyeing C$5 million from a convertible offering.

Chapleau gets Kinross commitment

Chapleau Resources said it is selling C$2.5 million worth of stock-and-warrant units to Kinross Gold.

The 5 million units were sold at C$0.50 apiece. Each unit comprises one common share and one warrant. The warrants expire in two years and are exercisable at C$0.70 in the first year and at C$1.10 in the second year.

Chapleau common stock (TSX: CHI) closed at C$0.40 on Wednesday, lower by 13.04%, or C$0.06. Kinross common stock (TSX: K) rose 1.19%, or C$0.23, to close at C$19.51.

Chapleau, a gold and copper mining company based in Cranbrook, B.C., said it will use the proceeds to advance its Coringa and Mato Velho gold projects in Brazil and a copper and gold exploration program in Peru. The proceeds will also be used for general working capital purposes.

Kinross is a Toronto-based gold mining company.

"This strategic investment by Kinross in Chapleau is positive recognition of the exploration and management team, and quality exploration properties," Chapleau president Ian Gendall said in a statement.

Altus plans placement

Altus Group plans to raise C$41.06 million through a private sale of its common units.

Altus said it will sell 2.25 million common units at C$18.25 per unit. Altus common stock (TSX: AIF.UN) closed at C$17.70 on Wednesday, up by 0.28%, or C$0.05.

The Newmarket, Ont.-based open-ended trust is a provider of real estate consulting and advisory services. Altus said it will use the proceeds to pay down debt and for general corporate purposes.

Longford to sell units

Longford Energy plans to sell C$15 million of stock-and-warrant units through a private placement.

The company will sell 18.75 million units of one share and one half-share warrant at C$0.80 per unit. Each whole warrant will be exercisable at C$1.00 for two years.

Longford common stock (TSX: LFD) fell 13.04%, or C$0.12, to close at C$0.80 on Wednesday.

The underwriters, who are led by Canaccord Capital Corp., have an over-allotment option for an additional C$5 million, or 6.25 million units.

Longford, a Toronto-based oil and gas exploration company, said the proceeds will be used for general corporate purposes.

FirstGrowth to offer convertibles

FirstGrowth Exploration said it is offering C$5 million of four-year convertible debentures through a private placement.

The 10% debentures will be convertible into FirstGrowth common stock at an initial conversion price of C$0.80 per share. FirstGrowth common stock (TSX: FGC) closed at C$0.56 on Wednesday after gaining 1.82%, or C$0.01.

FirstGrowth is a Vancouver, B.C.-based provider of geophysical services such as seismic imaging for the oil and gas and mining industries. The company said it will use the proceeds of the deal to buy additional equipment and for general working capital.

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