Alexco plans C$6 million stock sale; Oakley to raise £18 million; Kona wraps $1.2 million notes sale

By Stephanie N. Rotondo

Portland, Ore., March 9 - Alexco Resource Corp. is planning to raise C$6 million in a private placement, the company said Monday.

The company will sell 3.4 million flow-through common shares. Alexco's top executive told Prospect News that the funds are "specifically earmarked" for exploration.

Also, Oakley Capital Investments Ltd. will issue 28.1 million shares in a private placement aimed at raising £18 million.

Kona Grill Inc. completed a notes sale for $1.2 million. The deal also includes the issuance of warrants.

Meanwhile, Farallon Resources Ltd. and ADA-ES Inc. amended terms of already announced deals. Farallon extended the maturity of its September private placement, while ADA extended its agreement's termination date.

Alexco plans stock sale

Mining company Alexco Resource announced Monday that it was looking to raise C$6 million though a non-brokered private placement of flow-through common shares.

The Vancouver, B.C.-based company plans to issue 3.4 million of the shares at C$1.75, which represents an 8% premium over the company's volume-weighted average price for the five days ending March 6, according to a press release. Flow-through shares allow company to pass tax deductions or credits from mineral exploration to investors.

Proceeds form the deal will be used to "incur eligible Canadian exploration expenses in respect of its silver-lead-zinc mineral properties located in the Keno Hill district of Yukon Territory," the release stated.

Being that the funds are "specifically earmarked" for exploration, the deal met the requirements of a flow-through facility, Clynton R. Nauman, Alexco's president and chief executive officer, told Prospect News. Nauman also added that the company was happy with the pricing, given that it was at a premium.

Furthermore, Nauman stated that the choice to go private was simply because it was cheaper to go in that direction.

"We're pretty happy with it," he said. "There is not a lot of money out there and the people we deal with are pretty selective, so we are just happy to be on the list."

Alexco's stock (Toronto: AXR) closed 16 cents cheaper, or 9.09%, to C$1.60.

Oakley to raise £18 million

Oakley Capital Investments is planning a £18 million private placement of shares, the company said Monday.

About 28.1 million ordinary shares will be issued in the deal at 64p per share. Liberium Capital Ltd. is acting as placement agent.

The Paget, Bermuda-based company said in a press release that the current economic conditions represented opportunities "as distressed businesses seek capital and pricing expectations fall within target markets.

"As such, the directors consider it in the best interests of shareholders to raise cash at the prevailing market price which, whilst at a discount to the last published net asset value of the company, will enable OCIL to commit further capital to the Oakley Fund and ensure that it is in an even more favorable position to exploit these investment opportunities. The net proceeds of the placing will be committed entirely to the Oakley Fund."

"The current economic climate continues to present excellent investment opportunities to the Oakley Fund and I am delighted that existing and new shareholders have supported this fundraising to enable us to exploit them," Peter Dubens, director of OCIL, said in the release.

Oakley's equity (London: OCL) closed at 64p.

Kona wraps placement

Restaurant chain Kona Grill said it wrapped a $1.2 million private placement of 10% unsecured subordinated notes due Sept. 2, 2009, according to a regulatory filing.

Three-year warrants for 10,000 shares per $100,000 in notes were also issued. Warrants are exercisable at $2.29.

Kona's stock (Nasdaq: KONA) gained 4 cents, or 2.23%, to $1.83. Market capitalization is $11.9 million.

Kona Grill is based in Scottsdale, Ariz.

Deals amended

Among completed PIPE deals, Farallon Resources said it was extending the maturity fate of promissory notes issued in a September private placement.

The company said in a press release that the maturity of the C$25 million of 15% six-month promissory notes would be extended by six months. The original agreement held a provision that allowed the company to make such extensions.

Also, as part of the provision, the company issued another tranche of shares at the same price as the original deal, resulting in investors receiving an additional 5.3 million shares.

Meanwhile, ADA-ES amended terms of a private placement agreement inked in October, according to a regulatory filing.

Under the original terms, about 1.8 million each of series A and B convertible preferred shares would be issued to Energy Capital Partners I, LP. Both parties had the right to terminate the deal if it did not close by March 2.

The amended terms give both parties until June 30 to complete the deal. Also, the termination date will automatically be extending in 90-day increments, unless either company gives notice that it doesn't want to extend the date.

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