Hana Mining gets C$24.15 million from stock sale; Rio Alto secures funds for La Arena project

By Devika Patel

Knoxville, Tenn., May 20 - Canadian mining dominated Thursday's private placement news as metal exploration companies secured funding for project development.

Hana Mining Ltd., a mineral exploration company in Vancouver, B.C., sold C$24.15 million of its stock in a deal that priced in late April. The C$3.15 million greenshoe was fully exercised, and the company will use these proceeds to conduct exploration and scoping studies at its Botswana copper projects.

Rio Alto Mining Ltd. completed the first tranche of a placement, raising C$7.57 million. The mining company is raising funds for its La Arena Gold Oxide Project. The company expects to begin production by the fourth quarter of 2010.

London's Niche Group plc plans to raise £5.69 million in a private placement of shares and also announced a £5.2 million investment into Oman Resources Ltd.

Hana raises C$24.15 million

Hana Mining completed a C$24.15 million shares placement, in which it sold 11.5 million ordinary shares at C$2.10 apiece. Of the shares, 1.5 million were part of the fully exercised C$3.15 million greenshoe.

The company is raising cash for its Botswana copper projects. The company will conduct exploration and scoping studies. It recently announced mineralization results from the Ghanzi project in northwestern Botswana.

Company shares (TSX Venture: HMG) fell 3.23%, or 5 cents, closing at C$1.50 on Thursday.

Rio Alto secures C$7.5 million

Vancouver, B.C.-based Rio Alto Mining said it has raised $7.57 million in the first tranche of a private placement of stock.

The company sold 10,097,162 common shares at C$0.75 per share.

Proceeds will be used for development of the La Arena Gold Oxide Project. The company's chief financial officer Anthony Hawkshaw said results have shown "existing copper/gold resource of approximately 3 billion pounds of copper and 3 million ounces of gold."

Specifically, the placement's proceeds will help the mining company complete the technical and development work necessary to bring the project into production by the end of 2010.

The company shares (TSX Venture: RIO) decreased 6.41% Thursday, or 5 cents, closing at C$0.73.

Niche negotiates £5.69 million

Niche Group said it plans to take in £5.69 million by selling 113.7 million ordinary shares at 5p each, a 10% discount to the closing share price on May 19. In addition, the company will invest £5.2 million in Oman Resources, an oil and gas explorer, via a convertible loan that converts into 17.33% of Oman Resources' issued share capital.

"Our investment in Oman Resources has captured a unique opportunity to participate in what I believe could be the largest gas discovery in Turkey," company director Donal Boylan said in a press release.

"Looking ahead, given the strength of Oman Resources' relationship with one of Turkey's largest operators, we believe they are exceptionally well placed to build a sizable exploration and production portfolio both onshore Turkey and across the Middle East."

Daniel Stewart is the broker for the placement.

The company invests in private companies. Its shares (London: NGP) fell 8.57%, or 0.45p, to close at 4.8p Thursday.

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