Inter-Citic inks strategic deal; Epic Energy closes offering; International PBX wraps tranche

By Stephanie N. Rotondo

Portland, Ore., April 15 - Inter-Citic Minerals Inc. announced it had secured C$18.56 million from a Chinese investor. A company spokesperson told Prospect News that the investor had approached the company about forming partnerships on projects in China and that the deal was "very welcomed by us."

Meanwhile, Epic Energy Resources Inc. completed a private placement of convertible preferreds, taking in more than $3.5 million. Along with announcing the financing, the company also gave details regarding its recent recapitalization efforts.

International PBX Ventures Ltd. closed the first tranche of its private placement of units, raising more tahn C$1 million. The company hopes to complete the remaining portion in the near term.

And American Eagle Energy Inc. wrapped a $1 million placement of convertible debentures. Investors also received warrants.

Inter-Citic inks strategic investment

Inter-Citic Minerals will take in C$18.56 million from a private placement of common stock, the company said in a press release.

Zijin Mining Group Co., Ltd. is the investor.

Inter-Citic will sell 16 million of the shares at C$1.16 per share. Upon closing, Zijin will have a 19.15% equity stake in the Toronto-based mineral exploration company.

The terms of the deal also allow Zijin to maintain its stake in subsequent financings.

Stephen Lautens, vice president of corporate communications for Inter-Citic, said the investor approached them about a potential partnership.

"We always thought we would have a development partner," Lautens said. "Five years ago, we would have thought it would be a western partner."

But as China businesses continued to grow, Inter-Citic saw a real opportunity with Zijin.

Lautens said the investment would help the company in a number of ways. He noted that the dilution of the deal was minimal and that the terms were "very, very friendly." On a "practical level," Zijin's position as China's largest gold producer would help the company get its own properties going.

"They have the expertise to develop the property inside China," he said. With the red tape that accompanies such assets, "the risk disappears."

Proceeds from the funding will go toward advancing the Dachang project in China, as well as for general corporate purposes.

Inter-Citic's stock (Toronto: ICI) gained 23 cents, or 22.12%, to C$1.27. Market capitalization is C$111 million.

Epic sells convertible preferreds

Epic Energy pocketed $3.6 million from a private placement of series A convertible preferred shares, the company said in a regulatory filing and subsequent press release.

The deal closed April 9.

Epic sold 3.6 million of the shares at $1.00 each. The shares are initially convertible into 14 common shares.

Also, the company said it had inked an agreement with 98% of its 10% secured debenture holders in which the holders have agreed to waive certain breaches and to defer approximately $6 million of payments due until 2012. The investors received 6 million common shares for agreeing to the waiver.

The remaining 2% of holders have agreed to redeem their securities at par plus interest.

Additionally, Epic redeemed $1 million of debentures from Whitebox Advisors, LLC for 14 million common shares and swapped all of its outstanding series C and series D warrants for common stock and preferred shares.

"We completed this private placement in order to address our needs for working capital and liquidity to enable the company to fund existing and future projects," said John S. Ippolito, president and chief executive officer, in the release.

Epic's equity (OTCBB: EPCC) slipped $0.004, or 2.35%, to $0.166. Market capitalization is $7.54 million.

Epic Energy is an oil and gas company based in The Woodlands, Texas.

International PBX closes tranche

International PBX Ventures, a Vancouver, B.C.-based mineral exploration company, raised C$1.03 million in the first tranche of its private placement of units.

The non-brokered deal priced at C$1.4 million on Feb. 22.

The company will issue a total of 7 million units - 5.16 million were issued in the first closing - at C$0.20 each. The units contain one common share and one half-share warrant.

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

"Management intends to complete the balance of the full financing in the near future on unchanged terms," the company said in a press release.

Proceeds will be used for drilling activities.

International's shares (TSX Venture: PBX) dipped a cent, or 4.55%, to C$0.21. Market capitalization is C$15.4 million.

American Eagle seals $1 million

American Eagle Energy wrapped a $1 million private placement of 8% convertible secured debentures, according to a regulatory filing.

The debentures come due April 15, 2011 and are convertible at any time at an initial price of $0.75 per share.

Investors also received warrants equal to 625,000 common shares. The warrants are exercisable at $0.80 until April 15, 2012.

American Eagle's equity (OTCBB: AMZG) was unchanged at $0.68.

American Eagle Energy is a Billings, Mont.-based natural resource exploration company.

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