China TransInfo wraps $15.02 million; Dorato plans C$3.23 million; JED arranges sale

By Devika Patel

Knoxville, Tenn., July 18 - China TransInfo Technology Corp. settled a $15.02 million deal in which the company sold shares to SAIF Partners III LP, Dorato Resources Inc. plans to sell C$3.23 million of its common shares, a portion of which will be sold to investor Franco-Nevada Corp., and JED Oil Inc. signed an engagement agreement to market its northern Alberta oil and gas assets, which will help the company fund its redemption of its $40.24 million in 10% senior subordinated convertible notes, which were sold in a private placement and due to be redeemed in February.

China TransInfo: $15.02 million

China TransInfo concluded a private placement of shares for $15.02 million.

The Beijing-based holding company sold about 2.59 million common shares at $5.80 per share to SAIF Partners III LP.

Proceeds will be used for general working capital purposes, expansion of current business areas and possible acquisition opportunities.

"We are very pleased to have SAIF take part in the rapid development of China TransInfo. We believe that the proceeds from the private placement will provide us with sufficient capital to expand our taxi media business across China and realize potential strategic acquisitions," China TransInfo's chief executive officer Shudong Xia said in a press release. "As a leading traffic information processor, traffic volume surveyor, and real-time traffic information provider in China, we remain dedicated to maximizing value to shareholders and the investment community."

"We are very excited to begin our partnership with China TransInfo," SAIF partner Brandon Ho-Ping Lin added in the release. "We believe that China TransInfo is one of the most dynamic companies in China's transportation information industry and we are confident in the Company's ability to build on its current success to continue expanding into the future."

The company's shares (OTCBB: CTFO) rose 4.46%, or $0.25, on Friday, closing at $5.85.

Dorato arranges C$3.23 million

Dorato Resources announced it will sell its common stock for C$3.23 million.

The company said it will sell 1.9 million common shares at C$1.70 per share. Of those shares, 1.5 million will be sold to Franco-Nevada Corp. for C$2.55 million.

Dorato said it also agreed to allow Franco-Nevada the option to purchase a perpetual royalty on all of the gold and silver produced from its El Tambo and surrounding land package covering approximately 152 square kilometers along the southern extension of Aurelian Gold's Fruta del Norte structural trend as it enters Peru.

Dorato has exploration rights to a total of 700 square kilometers of the Cordillera del Condor Project in northern Peru. The option will be set forth in a royalty option agreement which the parties will negotiate.

"The Dorato land package which lies along the southern extension of the prolific Fruta del Norte trend within the mining friendly jurisdiction of Peru is an exceptional opportunity for Franco-Nevada to participate on the ground floor of a new emerging world class gold district," Franco-Nevada's president and chief executive officer David Harquail said in a news release.

"The private placement and royalty option agreement fits well with our objective of working with quality partners to create royalty interests in major gold belts offering security of tenure."

The Vancouver, B.C.-based resources company's shares (TSX Venture: DRI) remained unchanged, closing at C$1.60 on Friday.

JED Oil to sell assets

JED Oil said it has negotiated an engagement agreement with CB Securities Inc. to market the company's northern Alberta oil and gas assets in the Steen River area of northern Alberta.

Proceeds from this sale would be used to redeem JED's $40.24 million in 10% senior subordinated convertible notes, plus interest from Jan. 1, and to pay outstanding trade creditors. The balance of proceeds will be used for the company's 2008/9 drilling program and general working capital.

The notes were sold in 2005 and 2006 to investors in a private placement deal. They originally were set to mature in February, but the Didsbury, Alta.-based company lacked the funds to buy back the notes.

This asset sale agreement comes as a welcome change at the heels of several months' worth of deals between the company and the note holders. Since February, the company has been negotiating and renegotiating the maturity date with the investors, and also has put off paying interest due on the notes.

"We expect to be free of debt and ready to proceed building the company when we complete this process," JED's chief executive officer Tom Jacobsen said in a press release.

The sales are expected to close by Oct. 31, unless shareholder approval is required. In that case, the sales are expected to close by Nov. 21.

The forbearance and note amending agreement between JED and holders of a majority of the notes containing the terms of the term sheet was signed on July 1.

The company and note holders agreed that the deadline of Sept. 1, agreed upon in the July 1 forbearance agreement, did not provide adequate time to market the assets.

Accordingly JED and holders of a majority of the notes signed a new agreement on July 11 which extended the maturity date of the notes to either Oct. 31 or Nov. 21 if shareholder approval is required.

The oil and natural gas company's shares (Amex: JDO) jumped 7.89% on Friday, or $0.03, to close at $0.41.

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