Galway seeks exploration funding; Savoy Energy secures equity line; Prana to raise A$6 million

By Stephanie N. Rotondo

Portland, Ore., Sept. 9 - Mining companies and biopharmaceuticals dominated Wednesday's private placement market.

Galway Resources Ltd. announced a C$10 million private placement of common share units. Proceeds will be used for exploration.

Savoy Energy Corp. announced a $10 million deal. The company said it secured an equity line of credit, to be used for future growth, among other things.

Meanwhile, Prana Biotechnology Ltd. said it was looking to raise A$6 million from a private stock sale. An existing shareholder was the sole investor.

Also, Ziopharm Oncology Inc. announced its intent to raise $5.05 million from a private placement of equity units. The proceeds will be used, in part, to further develop the company's product candidates.

Golden Odyssey Mining Inc. orchestrated a C$2 million private placement of both flow-through and common share units. The company has not yet determined how much of each will be sold. However, the deal is expected to generate interest from existing shareholders.

Hanmi Financial Corp. announced it closed on the first tranche of its over $11 million private placement of stock on Tuesday. On Wednesday, Prospect News spoke to a person familiar with the matter and received new details regarding the usage of the funds.

Galway wants exploration funding

Galway Resources arranged a C$10 million private placement of units, according to a press release.

The company intends to sell 20 million units, with each unit containing one common share and one half-share warrant. Each unit will sell at C$0.50 per unit and each whole two-year warrant is exercisable at C$0.75.

Proceeds will be used for exploration, as well as for general corporate purposes. Settlement is expected Sept. 29.

Calls made to the company seeking comment went unreturned Wednesday.

Galway's stock (TSX Venture: GWY) dropped C$0.025, or 4.81%, to C$0.495. Market capitalization is C$26.5 million.

Galway Resources is an Elko, Nev.-based mining company.

Savoy secures equity line

Among other deals with a $10 million price tag, Savoy Energy announced it inked a $10 million equity line of credit with Tangiers Investors LP.

"We are pleased to have established this line of credit," remarked Art Bertagnolli, chief executive officer, in a press release. "This financing will assist our company as we move forward with our recompletion programs, as well as our plans for future growth and expansion."

Calls made to the company seeking comment went unreturned Wednesday.

Savoy's shares (OTCBB: SNVP) dipped $0.0409, or 18.51%, to $0.1801. Market capitalization is $5.22 million.

Savoy Energy is a Houston-based oil producer.

Prana to raise A$6 million

Prana Biotechnology will conduct an A$6 million private placement of equity, the company said in a press release.

The Melbourne, Australia-based company will issue 30 million ordinary shares at A$0.20 each. Investors will also receive 10 million attaching options. The options are exercisable at A$0.30 for four years.

"The funds come from an existing shareholder committed to Prana's strategy to become a leader in the development of drugs to treat age related neurodegenerative diseases," the release said.

"We are always appreciative of the continuing support we receive from existing shareholders," remarked Geoffrey Kempler, Prana's CEO, in the release.

"The new funds will allow Prana to continue to build its development pipeline by providing the financial flexibility to choose to advance PBT2 into the next Alzheimer's Disease clinical trial supported by either a pharmaceutical company or by investors."

"The funds will also enable Prana to promote our other clinical opportunities, especially around Parkinson's Disease, and we hope soon to announce that we have selected a lead compound for development."

Prana's equity (Australia: PBT) closed at A$0.235.

Ziopharm plans $5 million deal

Also in the pharmaceutical space, Ziopharm Oncology said it would take in $5.05 million via a private placement of units.

The company will sell about 27 million of the units at $1.825 per unit. The units will hold one common share and one warrant.

Proceeds from the financing will go toward working capital and general corporate purposes. In addition, the company intends to use the funds to further its ongoing clinical development of its three product candidates, palifosfamide (ZymafosTM or ZIO-201), darinaparsin (ZinaparTM or ZIO-101) and indibulin (ZybulinTM or ZIO-301).

Calls made to the company seeking comment went unreturned Wednesday.

Ziopharm's stock (Nasdaq: ZIOP) fell a penny, or 0.5%, to $1.78. Market capitalization is $38.4 million.

Ziopharm Oncology is a New York-based developer of cancer treatments.

Golden Odyssey to sell units

Golden Odyssey Mining is planning a C$2 million non-brokered private placement of both flow-though and common share units, according to a press release.

The flow-through units will sell at C$0.25 each and include one flow-through share and one warrant. The common share units will be issued at C$0.20 each and contain one common share and one warrant.

All warrants are exercisable at C$0.30 for one year.

According to a source familiar with the matter, the company "hasn't established the amount [to be taken in from] hard and flow-through dollars."

The source also expects many existing investors will participate in the financing.

"[Golden Odyssey] hasn't looked outside the company for financing," the source said. "I think a lot of the financing will come from people [already associated with the company]."

Proceeds from the transaction will fund exploration work at the company's recently optioned Dearhorn property, a "historical gold property in Northern British Colombia," the source said.

"[The company] wants to fast-track a work program to get a bulk sample to the lab and potentially earn some revenue from that sample," the source added.

Golden Odyssey's shares (TSX Venture: GOE) declined 4 cents, or 16.67%, to C$0.20. Market capitalization is C$9.35 million.

Based in Toronto, Golden Odyssey is a gold exploration company.

New details on Hanmi deal

Hanmi Financial's recent equity raising will be used as "just-in-case" funding, according to a source familiar with the matter.

The source, which commented on condition of anonymity, said the new funds were to "just enhance [the company's] capital reserves," as well as "in anticipation of a further increase in loan-loss provisions."

On Tuesday, the Los Angeles-based bank holding company announced it took in $6.95 million of an $11.02 million private placement of units on Sept. 4. The company sold approximately 5.07 million common shares at $1.37 each to Korean investor Leading Investment & Securities Co. Ltd. All told, the company will issue approximately 8.04 million shares.

The source did not give any timeline for the remainder of the funding, stating that the funds will close "hopefully very soon."

Hanmi's equity (Nasdaq: HAFC) gained just over 22 cents, or 13.67%, to $1.8301. Market capitalization is $70.1 million.

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