Gindalbie to sell A$162.05 million in shares to partner at premium; Rochester seals C$3.55 million deals

By Devika Patel

Knoxville, Tenn., Feb. 4 - Gindalbie Metals Ltd. arranged a A$162.05 million private placement of shares with its joint venture partner to finance the Karara iron ore project.

Killing two birds with one announcement, Rochester Resources Ltd. settled one deal and priced another for total planned proceeds of C$3.55 million. It sold shares to Energy Ventures Inc. and Cooper Minerals Inc. and plans to sell units via agent Canaccord Capital Corp.

And in a Monday press release, Tanzanian Royalty Exploration Corp. priced a C$3 million private placement of shares with its chairman, James E. Sinclair.

Gindalbie plans A$162.05 million

West Perth, Australia's mineral exploration company Gindalbie negotiated a A$162.05 million shares sale with Chinese steel producer, Anshan Iron & Steel Group Corp., or AnSteel.

AnSteel is developing the A$1.8 billion Karara iron-ore project through a 50-50 joint venture with Gindalbie.

The company will sell 190,658,824 shares at A$0.85 per share, a 25% premium to Wednesday's share price, to Angang Group Hong Kong (Holdings) Ltd., the parent company of AnSteel.

The company's shares (Australia: GBG) were unchanged Wednesday, closing at A$0.60.

Proceeds will be used to continue developing Karara, located in the mid-west region of Western Australia.

"The completion of this share placement represents a pivotal turning point in the company's history and corporate development as an emerging Australian iron-ore producer," Gindalbie chairperson George Jones said in a press release.

"I would like to take this opportunity to acknowledge the ongoing support of AnSteel and the close relationship we enjoy with them. The completion of a capital raising of this scale - at a substantial premium to market - would simply not have been possible in the current market environment without the backing of a substantial group such as AnSteel, which is totally committed to the project and shares our long-term objectives and vision," Jones said in the release.

Rochester: C$3.55 million

Rochester announced the settlement of a C$1.05 million shares sale and priced a C$2.5 million placement of units Wednesday, causing its share price (TSX Venture: RCT) to drop 9.38%, or 3 cents, to close at C$0.285.

The Vancouver, B.C.-based company sold 3.5 million shares to E-Energy Ventures Inc. and a further 3.5 million shares to Cooper Minerals Inc.

The two investors recently acquired a 10% equity interest in the company's subsidiary, Mina Real Mexico SA de CV, with each funding $1.48 million to be used for ongoing costs at the Mina Real project.

"We are pleased to have E-Energy and Cooper as our joint venture partners and we look forward to working with them to further advance the developments at the Mina Real Mine," Rochester president and chief executive officer Eduardo Luna stated.

The company also announced plans to sell 10 million units of one share and one half-share warrant at C$0.25 per unit. Each whole warrant will be exercisable at C$0.45 for 18 months.

Canaccord Capital Corp. will be the agent for C$1 million of the units.

"This additional capital will enable us to reach our near-term goals of producing positive cash flow by accelerating our development and exploration programs, while simultaneously executing on our long-term mine plan by development and mining from multiple areas project-wide," Luna said in a press release.

Rochester is a gold and silver exploration and development company.

Another C$3 million

Tanzanian Royalty priced another C$3 million placement of common shares with chairman Sinclair. The deal's terms are identical to those of a shares sale the company concluded Tuesday, also with Sinclair.

Sinclair committed to buy the shares in eight equal tranches of C$375,000.

Commenting on his investment, Sinclair said his purchase will give the company needed working capital.

"My ongoing market-priced investments in Tanzanian Royalty will ensure the company remains adequately financed while pursuing its objective of becoming one of the world's premium royalty companies with investment income from gold and other mineral producing assets in the Republic of Tanzania," Sinclair stated.

Tanzanian Royalty is a gold exploration company based in South Surrey, B.C. Its shares (Toronto: TNX) rose 0.21%, or 1 cent, to close at C$4.80 Wednesday.

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