Journey funds joint venture; SJ Electronics closes placement; Monto gets lifeline; Armistice downsizes deal

By Kenneth Lim

Boston, June 16 - Journey Resources Corp. announced a C$4 million fund raiser that it said will help to fund a key joint venture.

Meanwhile, SJ Electronics, Inc. wrapped up a $5.8 million convertible financing that will be used to help the company meet orders.

Monto Minerals Ltd. said it is raising A$5 million from a sale of stock that will provide a lifeline to a delayed project.

Armistice Resources Corp. downsized a private flow-through and hard financing offering.

Journey funds joint venture

Journey Resources said it is selling C$4 million worth of stock and warrant units in a private placement that will help to fund a joint venture.

The company is offering 20 million units of one common share and one warrant at C$0.20 apiece. Each warrant will be exercisable at C$0.35 for two years. Journey common stock (TSX: JNY) closed at C$0.20 on Monday, unchanged from its previous close.

The offering will consist of a non-brokered placement and a brokered deal by Gateway Securities Inc. Gateway has agreed to sell between 7.5 million units and 12.5 million units to raise between C$1.5 million and C$2.5 million.

Proceeds will be used to fund the expenditure requirements under the company's previously announced joint venture with Grenville Gold Corp. on the Silveria property in Peru and for general working capital purposes.

Journey is a mining and exploration company based in Vancouver, B.C.

"We are very excited to be working with Gateway Securities Inc. and feel that the relationship we have established with Gateway will continue to be very beneficial to the company and its shareholders," Journey president Jack Bal said in a statement.

"We are also very pleased to have completed and filed a technical report on the Silveria Property and look forward to further progress in advancing the project into production under our joint venture with Grenville."

SJ raises to meet orders

SJ Electronics said it closed a $5.8 million offering of 15% convertible notes due 2009.

The company sold similar notes in May for $2.95 million.

Proceeds will be used as working capital, which will allow the company to meet demand for orders, SJ Electronics said in a press release.

Based in Shenzhen, China, SJ Electronics, formerly Acheron, Inc., is an international designer and manufacturer of a variety of electronic components for the computer, mobile phone and consumer electronics industries.

The company said it expects in 2008 to substantially exceed its 2007 sales of $56 million and net income of $4.5 million. As a condition of the financing, the company agreed to a pre-tax income make-good provision of $10 million for the year ending Dec. 31, 2008.

"In the past six months, our investment banker, Primary Capital, LLC has raised over $8 million for SJEL, allowing us to expand our business and take on new customers," SJ Electronics chairwoman Agatha Shen said in the press release. "We are very pleased with the results of the financing and are very excited about our future as a U.S. public company."

Monto to raise A$5 million

Monto Minerals said it received commitments for a A$5 million private stock placement.

The company is selling 48.075 million shares at A$0.05 per share for investors in the United Kingdom and at A$0.1035 per share for Australian investors. Monto common stock (ASX: MOO) fell 43.23% or A$0.067 on Monday to close at A$0.088.

Monto, a Milton, Australia-based mining company, said it will use the proceeds as working capital for its Goondicum Industrial Minerals Project.

"The directors consider that the placing proceeds are sufficient to enable the company to continue to operate the Goondicum Industrial Minerals Project at current production levels for a period of not less than three months," Monto said in a statement.

"During this time the company believes it will be in a position to better understand the issues which have caused the slower than expected ramp up in production at the project and the viability of the company's longer term expansion plans. If an expansion of the project is deemed viable, the company will require further funding to pursue the expansion."

Monto on Monday also announced that it had appointed mining industry veteran Mike Christie as chief executive for an initial period of three months.

Armistice downsizes deal

Armistice Resources said it downsized a stock and unit placement to C$3.24 million from the originally priced C$4 million.

The company, which priced the deal on June 5, sold about 2.7 million flow-through common shares at C$0.40 apiece for C$1.08 million. Armistice also sold about 6.2 million units of one common share and one half-share warrant at C$0.35 per unit for C$2.16 million. Each whole warrant will be exercisable at C$0.45 for 18 months.

Armistice common stock (TSX: AZ) slipped 5% or C$0.02 to close at C$0.38 on Monday.

The warrants may expire sooner if the company's shares close above C$0.70 for 30 consecutive trading days.

Armistice, an exploration company based in Toronto, said it will use the proceeds to fund exploration, general corporate purposes and working capital.

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