Bear Lake said amendments reflect current market; Farallon satisfied with placement; Bioheart sells units

By Kenneth Lim

Boston, Oct. 17 - Bear Lake Gold Ltd. said the recent amendments to its placement of units and stock were made to reflect current market conditions.

Farallon Resources Ltd. said it sold C$7.75 million of convertible notes that will give it a cash cushion as it ramps up production at a mine.

Bioheart, Inc. said it sold $1.8 million of stock and warrants through private placements in early October for its clinical and business operations.

Bear Lake explains changes

Bear Lake Gold said the latest changes to its placement were to reflect current share prices.

The company said it is again revising the terms of a private placement of units and stock to raise C$4.76 million. The deal priced for C$4.08 million on Sept. 29 and the company said it planned to raise C$6.41 million on Oct. 7.

The company will sell flow-through shares at C$0.30 per share for C$4.01 million, not C$3.03 million or C$5.01 million, and units at C$0.30 apiece for C$750,000, not C$1.05 million or C$1.4 million.

Each unit will consist of one common share and one warrant, with each warrant exercisable at C$0.40 for two years. The warrants originally had a strike price of C$0.95 for two years, then were amended to C$0.75 for 18 months.

Bear Lake common stock (TSX: BLG) closed at C$0.28 on Friday, up by 27.27% or C$0.06.

The agents have a greenshoe for an additional C$252,000 in units. The greenshoe originally was for C$1.01 million in either units or shares, then was increased to C$1.6 million.

Proceeds will be used for exploration.

Based in Longueuil, Quebec, Bear Lake is a gold and precious minerals exploration company.

"Unfortunately, we must somewhat follow the market and the new set price for the PP is reflective of the current share price," a spokesperson for Bear Lake told Prospect News. "Indeed, if we are raising money it is because we wish to continue with our aggressive drill programs on the prospective Larder Lake, Ont., project where several mineralized areas have been outlined. In addition, we are preparing an initial resource estimate by year end or early first quarter."

The spokesperson declined to say if Bear Lake will be seeking more financing soon.

"I cannot comment on if/when we will have another future financing but assume it is likely in the long run," the spokesperson said.

Farallon raises $7.75 million

Farallon Resources said it sold C$7.75 million of six-month convertible unsecured promissory notes.

Each C$500,000 par note will pay an annualized 15% cash coupon and 40,000 common shares for each six months outstanding. The company has an option to extend the notes for another six months after maturity for equivalent cash and share bonuses.

The convertibles have an initial conversion price of C$0.33 per share. Farallon common stock (TSX: FAN) closed at C$0.25 on Friday, up by 2.04% or a half-cent.

The proceeds will be used for working capital and to repay an existing $3.8 million loan.

Farallon is a Vancouver, B.C.-based mineral exploration company whose G-9 project contains zinc, copper, lead, gold and silver.

"I am very pleased that the company was able to complete this financing at a time of such uncertainty in world financial markets," Farallon president and chief executive Dick Whittington said in a statement. "These funds are a welcome addition to the treasury and, while not needed to fund our current work plan, provide the company with added insurance during the production ramp up phase of building the G-9 mine.

"As the company is also evaluating the potential to expand production to 2,200 tonnes per day (up from the current plan of 1,500 tonnes per day) and these funds will enable us to carry out the necessary work to conduct these studies earlier than anticipated."

Greg McCunn, chief financial officer for Farallon, told Prospect News he was satisfied that the C$0.33 initial conversion price was at a premium to market despite tough fundraising conditions.

"The financing was necessary for us to build our working capital as we run into the start up," he said. "Although this may seem like a reasonably expensive financing by historical standards, given current market conditions, we decided to go ahead."

The company would prefer not to have to extend the notes after six months, he said.

"Depending on what's in the market, depending on what happens...we feel the company could be in a strong cash flow position in six months to repay the notes," McCunn said.

Bioheart raisees $1.8 million

Bioheart said it sold stock and warrants between Oct. 1 and Oct 10, 2008 to accredited investors, including existing shareholders, to raise $1.8 million.

The placements involved about 1 million shares of Bioheart common stock and warrants to buy 301,173 shares. The warrants expire in three years and have a strike price of $2.12 per share. Bioheart common stock (Nasdaq: BHRT) rose 7.96% or $0.14 to close at $1.90 on Friday.

The proceeds will be used for Bioheart's ongoing clinical and business operations, and the company continues to seek investment support.

Bioheart is a Sunrise, Fla.-based biotechnology company that is focused on treatments for chronic and acute heart damage.

"We are grateful for the support of our new and our existing shareholders and their recognition of the important clinical work we are doing for heart failure patients," Bioheart chairman and chief executive Howard J. Leonhardt said in a statement.

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