Santa Fe Gold plans $10 million placement; Amarc wraps stock sale; China Green to issue equity

By Stephanie N. Rotondo

Portland, Ore., Jan. 15 - The PIPEs market wound down Friday, as the marketplace prepared for a three-day weekend.

Santa Fe Gold Corp. announced a $10 million registered direct offering of equity. The company intends to use the funding to advance its "strategic agenda."

Meanwhile, Amarc Resources Ltd. said it had wrapped a private stock sale, taking in C$5.5 million. A portion of the shares sold was of the flow-through variety.

Also, China Green Material Technologies Inc. is seeking nearly $5 million from a private placement of equity.

Among other deals, Cortex Pharmaceuticals Inc. completed a financing with a single investor. The company sold a convertible promissory note to raise $1.5 million.

Santa Fe plans direct placement

Santa Fe Gold intends to raise $10 million from a registered direct offering of common share units, the company said in a press release.

The company will issue approximately 7.69 million of the units at $1.30 per unit. Each unit will consist of one common share and one half-share warrant. Whole warrants are exercisable at $1.70 for five years.

"Santa Fe will use the net proceeds for general corporate purposes, including but not limited to, working capital for the Summit silver-gold project, which is planned to begin production shortly; acquisition of additional feed sources for expansion of the Lordsburg mill; advancement of the Ortiz gold project; exploration of the Pilar gold project; and pursuit of acquisition opportunities," according to the release.

"We are delighted to have completed this financing, which will enable us to accelerate our strategic agenda for precious metals acquisition and development," remarked W. Pierce Carson, chief executive officer. "The financing demonstrates confidence from institutional investors in the company's assets, its management and its future."

Settlement is expected by Jan. 20.

Santa Fe's stock (OTCBB: SFEG) closed down $0.46, or 27.22%, to end the day at $1.23. Market capitalization is $103 million.

Santa Fe Gold is an Albuquerque-based mining company.

Amarc wraps stock sale

Amarc Resources, a Vancouver, B.C.-based mineral exploration company affiliated with Hunter Dickinson, completed a private placement of stock, taking in C$5.5 million.

The deal originally priced at C$5 million on Dec. 18. A C$500,000 greenshoe was added Dec. 23.

Amarc sold 11 million common shares at C$0.50 each. Of those shares, 1 million were part of the greenshoe and another 4.8 million were flow-through shares.

Proceeds will be used for exploration activities.

Calls seeking comment were not returned Friday.

Amarc's equity (TSX Venture: AHR) finished lower at C$0.660, down C$0.020, or 2.94%. Market capitalization is C$48.1 million.

China Green to issue equity

China Green Material Technologies, a Harbin City, China-based manufacturer of starch-based biodegradable packaging materials, said it negotiated a $4.77 million private placement of equity.

The deal was priced Jan. 11, according to a regulatory filing.

The company will sell 5.3 million common shares to raise the funds.

China Green's stock (OTCBB: CAGM) ended higher at $2.70, up $0.10, or 3.85%.

Cortex seals $1.5 million

Cortex Pharmaceuticals settled a $1.5 million private placement of a 6% convertible promissory note.

Samyang Optics Co. Ltd. was the investor.

The notes come due Jan. 15, 2011 and are convertible into stock at the greater of market price at closing or a 15% discount to market price at the time of conversion. Once converted, the investor will receive 40% warrant coverage.

The warrants will expire after two years and have a strike price equal to the conversion price plus a 40% premium.

"We appreciate Samyang's timely financial support and the decision to invest in Cortex by their chief executive officer, Mr. Sang Yoon Rhee," stated Mark A. Varney, president and CEO, in a press release.

Cortex's shares (OTCBB: CORX) closed at $0.134, up $0.034, or 34%. Market capitalization is $8.38 million.

Cortex Pharmaceuticals is an Irvine, Calif.-based company focused on novel drug therapies for neurological and psychiatric disorders.

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