Greystar to sell 12.5 million shares; Accsys gets credit line; Western Wind to issue 5.85 million units

By Stephanie N. Rotondo

Portland, Ore., March 31 - Greystar Resources Ltd. negotiated a C$50.13 million private placement of common stock, the company said in a press release Tuesday.

The funds will be used in part to advance one of the company's mining projects in Colombia. However, according to a company representative, Greystar was not looking for financing at the current stage of development when the proposal came along.

Across the pond, Accsys Technologies plc is in process of obtaining a €20 million equity line of credit. Under the terms of the deal, one investor will purchase stock up to that amount over the next three years.

Western Wind Energy Corp. and LPT Capital Ltd. are planning unit sales for C$3.8 million and C$4.5 million, respectively.

Among closed deals, Dorato Resources Inc. received C$6 million through its unit sale. The deal was originally priced at C$5 million on March 11.

Greystar to sell stock

Greystar Resources announced a plan to raise C$50.13 million through a private placement of shares.

The company will issue up to 12.5 million common shares at C$4.01 per share. The deal is being arranged by a group of agents led by Ocean Equities Ltd. and including RBC Capital Markets and Scotia Capital Inc., according to a press release.

Funds from the transaction will be used, in part, to advance Greystar's Angostura Gold-Silver Project. The project, located in the mountains of Colombia, is expected to produce an average annual production of 511,000 ounces of gold and 2.3 million ounces of silver over 15 years, according to a press release announcing the results of a feasibility study on the property. Construction on the project was estimated for 2010, with production beginning in 2012.

"This study involved an in-depth analysis of all the aspects of our project, including the evaluation of several different alternatives for both the mining and process streams," said Frederick Felder, executive vice-president of Greystar, in the release. "The end result is a financially robust model with strong cash flow generation at a conservative gold price. Based on the positive results of the study, we will be proceeding with the next phase, which is a bankable feasibility study. This will include the environmental and the social impact studies and their submissions to the Colombian Ministry of the Environment. Both studies are expected to be completed in the fourth quarter of 2009."

However, at this stage of the project, Andres Curkovic, investor relations manager for the company, said that the recent financing was "certainly not a key strategic goal" of Greystar.

In fact, Curkovic told Prospect News that the company's lenders first came up with the idea and then approached the company to see if it was interested in securing the funds. Curkovic said the banks had "notions that clients or accounts would want to participate" in such an offering.

"But they didn't need the money, at least from a working capital perspective," he added.

Still, Greystar was receptive to the deal, which Curkovic characterized as "attractive" to the company, as well as its shareholders.

Given that the capital markets have been "unsettled," Curkovic said it was "prudent for the company at this late state of development to entertain taking the money when it was made available."

Additionally, the deal shows great support for the company, he said.

"This is great evidence that the market is seeing that Greystar has one of the largest undeveloped gold deposits in the world," he stated.

The company expects to settle the deal by the end of April.

Greystar's stock (Toronto: GSL) fell 3 cents, or 0.73%, to C$4.07.

Greystar Resources is a Vancouver, B.C.-based gold and silver mining company.

Accsys arranges equity line

London-based Accsys Technologies arranged a €20 million equity line of credit, according to a press release.

The credit line was negotiated with GEM Global Yield Fund Ltd. on Jan. 14, according to the release. Under the terms of the deal, GEM will purchase up to €20 million of the company's ordinary shares over a three-year period. The price per share will equal 90% of the stock's average closing bid price over the 15 days preceding drawdown.

GEM also received warrants good for 3.12 million shares. The warrants are exercisable at €1.00 for three years.

"This arrangement gives us some strong options and alternatives regarding capital requirements as it secures funding for continued growth and development of the company, if necessary, over the next three years," said Willy Paterson-Brown, executive chairman of Accsys, in the release. "This therefore places Accsys in a strong position to continue its expansion plans. While Accsys has a strong balance sheet, in an unpredictable financial world, the board deems it prudent to put in place a financial instrument to give greater flexibility for future growth."

Accsys' equity (London: AXS) closed at 0.67p.

Accsys manufactures acetylated wood.

Western Wind plans unit sale

Western Wind Energy negotiated a C$3.8 million private placement of units, according to a news release.

The Coquitlam, B.C.-based power generator said it will sell approximately 5.85 million units consisting of one common share and one half-share warrant at C$0.65 per unit. Each whole warrant is exercisable at C$1.00 for two years.

Loewen, Ondaatje, McCutcheon Ltd. will lead the deal. Agents also received a 20% greenshoe.

Proceeds from the deal will be used to secure a letter of credit on behalf of Southern California Edison Co. for the 20-year power purchase agreement on the company's Windstar Project. Remaining proceeds will be for development activities on Windstar, the Mesa Re-Power near Palm Springs and the Ontario Solar Initiative.

Furthermore, the company said that it will also issue up to 2.7 million units via a non-brokered private placement. Funds from that transaction will be used for cash, as well as for land acquisitions in the Tehachapi Wind Resource Area.

Settlement is expected by April 25.

Western Wind's equity (TXS Venture: WND) dropped a penny, or 1.54%, to C$0.64.

LPT to raise C$4.5 million

LPT Capital is working with M Partners Inc. to complete a C$4.5 million placement of units, the company said Tuesday.

The new financing is part of a merger agreement between LPT and Lincoln Gold Corp.

LPT plans to issue units at C$0.20, with each unit containing one post-consolidation share and one post-consolidation warrant. Each whole warrant is exercisable at C$0.30 for two years.

Proceeds from the transaction will be used to further Lincoln Gold's business plan, which includes completing the LPT merger.

LPT's equity (TSX Venture: LPC.P) last traded on Aug. 8 at C$0.15.

LPT Capital is a Vancouver, B.C.-based capital pool company.

Dorato settles deal

Dorato Resources settled a C$6 million private placement of units, the company said.

The Vancouver, B.C.-based company issued 12 million units - one common share and one half-share warrant - at C$0.50 per unit. Each whole warrant is exercisable at C$0.65 for two years. However, the warrants could expire sooner if the company's volume weighted average closing price is higher than C$2.00 for 20 consecutive trading days. In that instance, the warrants will expire with 30 days notice from the company.

Of the units sold, 2 million were part of a greenshoe. Franco-Nevada Corp. also purchased 2 million units for C$1 million.

Dorato's stock (TSX Venture: DRI) gained a nickel, or 7.69%, to C$0.70.

Dorato Resources, formerly known as Quest Ventures, is attempting to become a resource company.

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