Utek plans $14.2 million private placement; Choice to price C$10 million deal

By Sheri Kasprzak

Atlanta, March 23 - Gold companies that issued deals when stock prices were up last week were settling those deals Wednesday, sell-siders said.

"As far as volume today, there've been a few new things, but for the most part, deals that were priced last week or the week before were closing today," said one sell-side source.

Gold companies like Liberty Star Gold Corp. and RNC Gold Inc. announced that they had closed deals announced earlier.

Some sources said they were seeing more biopharmaceutical and technology issuers in the market.

"They're mostly smaller deals that I'm seeing, but I expect to see more of those types of companies in the coming days," said one market source.

Oil companies, according to one market source in Canada, pulled back from the private placement market Wednesday as oil prices retreated.

Oil prices dropped $2.22 to close at $53.81 per barrel as oil supplies increased and rising interest rates pushed down demand.

"It's an interesting situation for energy companies because last week, when prices were up so much, they were scrambling to do deals," said one Canadian sell-sider. "Prices sort of plummeted today and I think the energy companies are holding off, waiting to see what exactly will happen next."

Heading up private placement action Wednesday was a $14,193,229 offering from Utek Corp.

The offering includes up to 1,224,610 shares at $11.59 each.

Based in Plant City, Fla., Utek is a technology transfer company focused on bringing technologies from universities and laboratories to corporations. It plans to use the proceeds from the offering to expand its business in the United States, the United Kingdom and Europe.

On Wednesday, Utek's stock closed down $0.02 at $15.23.

Choice to price C$10 million deal

Choice Resources Corp. is in the process of pricing a C$10 million private placement of units.

The offering will include 65% common-share units and 35% flow-through shares.

The units will include one share and one half-share warrant. The full warrants will provide for an additional share at C$1 each for 18 months.

According to a company statement, the pricing of the deal will be determined by the context of the market.

"If you ask me, they're waiting to see what oil will do before pricing," said one market source familiar with the deal. "It really depends on what oil does over the next few days, but I'd peg it around C$0.75 for the common-share units, given the pricing of the warrants. I don't really want to get too technical. We'll just have to see what the market looks like."

A syndicate of underwriters led by Research Capital LLC will have an over-allotment option for up to C$5 million.

Based in Calgary, Alta., Choice is an oil and natural gas exploration company. The proceeds from the flow-through shares will be used to fund exploration expenditures. The proceeds from the units will be used for an expanded capital budget and for general corporate purposes.

On Wednesday, Choice's stock closed down C$0.04 at C$0.66.

Bullion Gold raises $4.8 million

Bullion River Gold Corp. completed a private placement of units for $4.8 million, the company said.

The offering included 6.4 million units at $0.75 each.

The units were comprised of one share and one warrant. The warrants provide for an additional share at $1 each for 36 months.

"Gold stocks were off today in general but I think the pricing of this deal affected their stock as well," said one market source who had seen the deal. "It's under-priced for certain and I think it can be attributed to shakiness in gold. So it's kind of a situation of, which came first?"

After the closing was announced Wednesday morning, Bullion River's stock lost $0.23 to close at $1.12.

"Our goal to raise sufficient funds for the development of our properties, and in particular for the French Gulch, has been more than fulfilled," said Peter Kuhn, the company's president, in a statement. "This financing will bring us to the production decision point at the French Gulch and beyond. Our objective to find many investors in different locations in the Americas and Europe, and to create a diverse and sophisticated shareholder base has been accomplished."

Based in Reno, Nev., Bullion is a gold-silver exploration and development company. It plans to use the proceeds to develop its properties.

Strongbow arranges C$3 million offering

Strongbow Exploration Inc. plans to head to the private placement market with a C$3,002,700 offering.

The deal includes up to 2.86 million units at C$0.35 each and up to 5.41 million flow-through shares at C$0.37 each.

The units include one share and one half-share warrant. The full warrants allow for an additional share at C$0.45 each for one year.

"It looks just about in line to me," said one market source. "The warrants look okay. I think it will go well for them."

The market source said mineral stocks in general have done well in the last two weeks.

Haywood Securities Inc. and Canaccord Capital Corp. are the placement agents.

Based in Vancouver, B.C., Strongbow is a mineral exploration and development company. It plans to use the proceeds from the offering for exploration on its Canadian mineral properties and for working capital.

Strongbow's stock closed up C$0.005 at C$0.35 Wednesday.

Kereco's stock continues to slip

Two days after announcing its C$121 million private placement, Kereco Energy Ltd.'s stock continued to slip.

The company's stock lost C$0.30 Wednesday to close at C$11.30.

On Tuesday, Kereco's stock dropped C$0.27 to close at C$11.60.

The company's stock gained C$0.77 Monday after the deal was first announced to close at C$11.87.

The company plans to sell shares at C$11 each.

"I think it has less to do with the deal and more to do with the fact that oil is sliding in general," said one market source familiar with the Kereco offering.

Kereco, based in Calgary, Alta., is a natural gas exploration company.

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