Aqua-Pure to raise C$20 million from stock placement; Constitution Mining sells $4 million units

By Devika Patel

Knoxville, Tenn., Aug. 14 - Aqua-Pure Ventures Inc. priced a C$20 million private placement of shares, the proceeds of which the company plans to use as working capital for its Parker County Water Supply Pipeline Project until its long-term funding becomes available in November.

On the news, Aqua-Pure shares (TSX Venture: AQE) jumped 15.58%, or 12 cents, to close at C$0.89 Thursday.

Separately, Constitution Mining Corp. said it took in $4 million by selling units in a private placement. It will use those proceeds for its gold projects in Argentina, which have recently shown encouraging results.

Aqua-Pure plans C$20 million

Aqua-Pure said it intends to raise C$20 million by the end of the month for its Parker County Water Supply Pipeline Project. It priced a placement of shares at C$1.00, a 17% premium to the company's closing share price of C$0.77 Wednesday.

Settlement is expected Aug. 29, and insiders are expected to buy whatever shares aren't sold by that date.

"We value our shares based on what they should be worth, not what the market says they should be worth," chief executive officer Jake Halldorson told the Prospect News Thursday. "This project is worth a great deal, and we priced this placement to reflect what we think the project is worth."

Apparently investors agree with Halldorson, as the company's shares soared 15.58% Thursday, closing much closer to the CEO's targeted value at C$0.89.

The Parker County Water Supply Pipeline Project, formerly known as the Weatherford Pipeline Project, is expected to deliver about 2 million gallons of treated water from a sewage treatment plant owned by the city of Weatherford, Texas, to gas drillers in north Parker County, Texas.

Essentially the company is selling recycled, or "frac" as in "fractured," water to oil companies after buying the water at a discount from Weatherford.

"We expect to have that project completed by the first quarter of '09," Halldorson said. "And we will have long-term financing set up for the project by November. Today's equity financing is intended to give us working capital until the long-term financing comes through."

The project is meant to save fuel and water costs for Texas' oil companies, as it eliminates 220,000 round trips from the city to the drilling sites, which are made by water trucks each year, and replaces the companies' use of potable water with recycled water.

Based in Calgary, Alta., Aqua-Pure is a provider of industrial and municipal wastewater services and technology solutions that ensure environmental sustainability through use of patented and proprietary technologies.

Constitution raises $4 million

Tempe, Ariz.'s Constitution Mining sold more than $4 million in units Thursday in a private placement intended to raise money for drilling and exploration in South America.

The company sold 5,007,300 units at $0.80 per unit. Each unit consists of one common share and one warrant. Each warrant is exercisable at $1.40 for one year, which could result in total proceeds of $11.02 million if each warrant is exercised.

"Proceeds from this offering will primarily be used to advance exploration and development on our existing gold properties in Argentina," Constitution Mining's chief executive officer, Willem Fuchter, said in a press release. "Additionally, we now have the necessary capital to conduct further due diligence on contemplated acquisitions in other regions of interest in South America."

The mining company has gold and silver interests in South America and has high hopes for its Atena Gold Project in Argentina, where it reported hopes for a significant gold ore body in July.

"Although it is still too early to tell what the full potential for the Atena Gold Project may be, the work we've done to date is certainly giving us cause to be very optimistic," Fuchter said in a July 15 release.

"The sampled target zones are now being followed up with additional sampling and strike trenching to better define the shape and tenor of the mineralized shoots," Fuchter said in the release. "Upon completion of this next phase of exploration, we intend to conduct a diamond drilling program to test the zones at depth.

"In addition to our mining assets in Argentina, we are actively evaluating potential acquisitions that are capable of generating immediate and long-term value for our shareholders," Fuchter added.

The company's shares (OTCBB: CMIN) finished 1.85% higher on Thursday, or 3 cents, closing at $1.65.

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