Bluerock plans C$2 million; Admiralty arranges $20 million convertible facility

By Laura Lutz and LLuvia Mares

New York, Jan. 22 - Bluerock Resources Ltd. said it is looking to put a recovery in place once it settles a C$2 million in a non-brokered private placement of units.

"We were headed in a downward spiral and we needed money," said Cary Martin, company investment relations manager. "This financing will tide us over."

The company will sell up to 3,448,276 units at C$0.58 apiece.

Each unit consists of one share and one half-share warrant. The whole warrants are exercisable at C$0.82 for one year.

The company's stock (TSX Venture: BRD) closed at C$0.65 on Tuesday, up C$0.02 from Monday's C$0.63 close.

Martin said the company will be issuing a second financing in the upcoming months. "We are also constantly looking for acquisitions," he said. "We currently own the second uranium producing mining in the country. We believe that makes Blurock a great investment."

Proceeds will be used for the development of the company's Colorado mining projects.

Bluerock, based in Vancouver, B.C., is a uranium exploration company.

Admiralty gets $20 million facility

Down under, Admiralty Resources NL announced a $20 million convertible unsecured note facility on Sunday.

Cornell Capital Partners, LP initially bought a $15 million note. Admiralty may draw down an additional $5 million.

The note matures in 720 days and bears interest at 8% per year. It is convertible into common stock at A$0.70 and repayable at any time.

Interest for the first three months was prepaid.

Of the proceeds, $1.5 million will be used for plant construction, $9 million will be used for working capital and the rest will be used for repayment of unsecured temporary loan facilities.

Announcing the deal, Admiralty said it "has felt no effect from the subprime lending crisis and is experiencing keen interest from prime lenders (e.g. trading banks and note issuers) wishing to take on resources based clients and in particular those in the iron ore business.

"Admiralty is raising additional debt using the creditworthiness of its iron ore clients to secure an additional loan and assist in reducing the interest rate and increase the amount of debt it can borrow," the company said.

"The funds will allow Admiralty Resources to continue its rapid progress on all three major projects, with out seeking equity which would dilute shareholders."

Admiralty is a Sydney, Australia-based mineral exploration company. Its stock closed unchanged at A$0.31 on Friday (Australia: ADY).

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