Western Alliance, MedcomSoft boost capital; Kola to sell units; Skye Resources places to acquirer

By Kenneth Lim

Boston, June 27 - Western Alliance Bancorporation said it raised $30.17 million to improve its capital position amid opportunities in the lending business.

Kola Mining Corp. plans to sell C$10 million worth of stock and warrant units in a private placement to fund a nickel project.

Skye Resources Inc. said it took in C$95.22 million through a private placement of stock to HudBay Minerals Inc. as part of an acquisition by HudBay.

MedcomSoft Inc. said it raised C$1.62 million as it gathers resources to grow in the U.S. markets.

Western Alliance boosts cash

Western Alliance Bancorp said it sold $30.17 million worth of stock to a limited number of accredited investors.

The company sold 3.8 million common shares at $7.94 per share. Western Alliance common stock (NYSE: WAL) closed flat at $8.11 on Friday.

About 45% of the shares offered were bought by 40 directors and officers of Western Alliance, the company said in a filing.

Western Allian, a Las Vegas-based bank, said it will use the proceeds to improve its capital position.

"This new equity will help us support strong loan growth as well as enhance our capital position," Western Alliance chairman, president and chief executive Robert Sarver said in a statement. "We continue to seek out new business from well-qualified borrowers, while many other financial institutions have curtailed their lending activity."

Western Alliance also said it is releasing its second-quarter results after the market closes on July 24.

Kola plans placement

Kola Mining said it will offer C$10 million of stock and warrant units in a private placement to help fund a nickel project in Russia.

It offering comprises about 33.33 million units of one common share and one half-share warrant at C$0.30 per unit. Each whole warrant is exercisable at C$0.45 for two years. Kola common stock (TSX: KM) gained 25% or C$0.07 on Friday to close at C$0.35.

Kola Mining, a mineral exploration company based in Vancouver, B.C., said it will use the proceeds for the development of the Souker Nickel project in Russia and for working capital.

"This financing will help enable us to advance our Souker Nickel project, one of the largest undeveloped nickel sulfide deposits in the world," Kola chairman Cary Pinkowski said in a statement.

Skye raises C$95.22 million

Skye Resources said it received C$95.22 million from acquirer HudBay Minerals in a private placement of stock.

The placement involved about 12.68 million common shares at C$7.51 per share. Skye Resources is merging into HudBay through a proposed share swap that will give Skye shareholders 0.61 HudBay share for every one Skye share.

Skye common stock (TSX: SKR) closed at C$8.40 on Friday, up 0.12% or C$0.01. HudBay common stock (TSX: HBM) increased by 1.85% or C$0.25 to finish at C$13.80.

The placement requires regulatory approval and is not conditional upon the completion of the merger. But the merger does need shareholder approval.

Existing Skye investor Vale Inco Ltd., which currently holds an 11% stake in Skye, may also opt to subscribe for shares in order to maintain its holding.

Skye, a Vancouver, B.C.-based mineral exploration company, said the proceeds will be used to ramp up the full engineering, procurement and construction activities at the Fenix Project.

"We believe that this transaction represents excellent value for our shareholders," HudBay president and chief executive Allen Palmiere said in a statement. "Today's announcement reflects one of the key elements of our strategy-building scale and scope through opportunistic investments to complement HudBay's existing operations."

"This is a tremendous addition to HudBay's development pipeline and provides important diversification to the company's existing portfolio," he said.

"Our balance sheet strength together with the continuing strong cash flows from our current operations place us in excellent position to bring to production the Fenix Project and continue our aggressive exploration and development activities in the prolific Flin Flon Greenstone Belt. At the same time, we will continue to seek additional opportunities in support of further growth and value creation for shareholders."

Skye vice chairman and chief executive Colin K. Benner added: "The planned combination is a great opportunity for Skye's shareholders and for Guatemala. This agreement merges the world class ferro-nickel Fenix Project with a company with the financial and technical capacity to move it forward rapidly and I encourage Skye shareholders to vote in favor of this transaction.

"HudBay is a large, exceptionally well-managed and respected Canadian mining company with roots going back over 80 years. We are very pleased to become a significant part of this much larger and stronger enterprise and support their plans for future growth in the pursuit of becoming an international mining house."

MedcomSoft sells units

MedcomSoft said it raised C$1.62 million through a non-brokered private placement of units.

The company sold about 17.1 million units of one common share and one quarter-share warrant at C$0.095 per unit. Each whole warrant is exercisable into one common share.

MedcomSoft, a Toronto-based developer of software used in the health care sector, said it will use the proceeds for working capital.

"This funding, combined with the changes that we have made in the last several weeks to streamline MedcomSoft's operating structure, enables us to concentrate our resources on securing effective access to the $6.5 billion market in the US for ambulatory PM/EMR software," MedcomSoft interim chief executive Robert Wilson said in a press release.

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