Continental Nickel raises C$9 million; Colt Resources deal shrinks to C$997,500

By Laura Lutz

Des Moines, Dec. 8 - PIPEs news was slow on Tuesday, as usual dominated by Canadian resource companies.

Continental Nickel Ltd. led the news with the closing of a C$9 million deal.

The Toronto-based mining company sold 3 million common shares at C$3.00 apiece, including a fully exercised greenshoe for 390,000 shares.

The greenshoe boosted the deal from the C$7.83 million size announced at pricing on Dec. 12.

Paradigm Capital Inc. led a syndicate of underwriters that also included PI Financial Corp. and Raymond James Ltd.

Proceeds will be used for exploration, acquisitions and general corporate activities.

The company's stock closed at C$3.20 on Tuesday, unchanged since Friday (TSX Venture: CNI).

Colt takes in C$997,000

Colt Resources Inc. had less lucrative news, reporting the completion of its non-brokered private placement for C$997,000, well under the C$3 million minimum announced on Nov. 7.

When the non-brokered deal priced, Colt planned to sells between C$2.5 million and C$5.2 million of non flow-through units along with C$300,000 to C$500,000 of flow-through shares.

In the end, the company sold 3,908,000 units at C$0.25 each and 57,143 flow-through shares at C$0.35 each.

The units each consist of one share and one warrant. Each warrant is exercisable at C$0.30 for three years.

Proceeds will be used for exploration and working capital.

The placement was originally expected to settle on Nov. 30, but it was extended twice, in announcements on Nov. 28 and Dec. 19.

Colt is a Vancouver, B.C.-based mining company. Its stock closed down C$0.005, or 2.17%, at C$0.225 on Tuesday (CNQ: COLT).

Tirex pockets C$3.01 million

Elsewhere in the mining sector, Tirex Resources Ltd. raised C$3.01 million from the first tranche of its previously reported C$5.5 million private placement of shares.

The Vancouver, B.C.-based company sold 1,095,455 shares in the first tranche.

In total, the placement is expected to include 2 million shares at C$2.75 apiece. It priced on Dec. 5.

Proceeds will be used for exploration and general corporate purposes.

The company's shares dropped C$0.21, or 7.61%, to close at C$2.55 on Tuesday (TSX Venture: TXX).

540 Capital plans C$2.35 million

Capital pool company 540 Capital Corp. said it will conduct a private placement of units and shares for up to C$2.35 million.

Canaccord Capital Corp. will be the agent.

The placement will consist of up to 3 million units at C$0.45 apiece and up to 2 million flow-though shares at C$0.50 apiece.

Each unit will consist of one non flow-through share and one warrant. Each warrant will be exercisable at C$0.60 for 18 months.

The Calgary, Alta.-based company plans to close the placement alongside its acquisition of Golden Dory Resources Ltd. That acquisition will be 540's qualifying transaction.

540 shares, which are listed on the TSX Venture Exchange under the symbol "FA.P," are not trading pending filing of documentation related to the acquisition. The shares closed at C$0.58 on Nov. 29, the date of the last trade.

Commonwealth Biotech raises $1.95 million

In U.S. news, Commonwealth Biotechnologies, Inc. settled a private placement of 10% convertible subordinated notes and warrants.

The notes mature on July 31, 2009. They will be convertible into common stock at $2.00 per share.

Along with the notes, investors received class A warrants for 975,000 shares and class B warrants for 243,750 shares.

The class A warrants will be exercisable at $2.85 until May 31, 2013, and the class B warrants will be exercisable at $5.00 until June 30, 2009. Both series of warrants will become exercisable on July 1.

On Jan. 2, the settlement date, Commonwealth's stock closed unchanged at $2.55 (Nasdaq: CBTE). On Tuesday, the stock dropped 8.01 cents, or 3.2%, to close at $2.4199.

Commonwealth is a Richmond, Va.-based research and development company focused on the biotechnology industry.

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