AES to raise $1.58 billion; Sea Dragon wraps oversubscribed deal; SpectraScience issues units

By Stephanie N. Rotondo

Portland, Ore., Nov. 6 - AES Corp. brought Friday's biggest private placement, by far, to market.

The company said it would raise more than $1.5 billion by privately placing stock with a single investor. AES hopes the funds will help the company expand its global reach.

Meanwhile, Sea Dragon Energy Inc. announced it settled a C$15 million private placement of units. The deal included an over-allotment option and, according to a company spokesperson, the deal was still heavily oversubscribed.

SpectraScience Inc. also completed a deal, raising $4.33 million.

Elsewhere, Castle Gold Corp. set down the terms of a previously announced C$3.68 million private placement. The company said it expects the deal to close shortly.

And, Lydian International Ltd. said it closed on a C$2.2 million private placement of stock. Macquarie Bank Ltd. subscribed for the bulk of the deal.

AES to raise $1.58 billion

AES, an Arlington, Va.-based owner and operator of power generation and distribution business, arranged a $1.58 billion private placement of common shares.

China Investment Corp. is the investor. The financing will bring CIC's holdings to 15%.

AES will issue 125.5 million shares at $12.60 per share.

Proceeds will be used to fund growth opportunities and expand the company's global leadership within the power sector.

"We see tremendous potential for growth in meeting demand for affordable and sustainable power throughout the world," remarked Paul Hanrahan, president and chief executive officer, in a press release. "Having CIC as a partner will enhance our financial flexibility, provide capital needed to move more quickly on our project development pipeline, and offer broader access to high quality investment opportunities."

AES' stock (NYSE: AES) gained 14 cents, or1.01%, to $14.00. Market capitalization is $9.5 billion.

Sea Dragon financing oversubscribed

Sea Dragon Energy, a Calgary, Alta.-based exploration and development company, said it raised C$15 million via a private placement of equity units.

The deal originally priced for C$10 million, with a C$5 million greenshoe, on Oct. 9.

Sea Dragon sold 60 million units at C$0.25 per unit. The units contained one common share and one half-share warrant. Whole warrants are exercisable at C$0.50 for three years.

Of the units sold, 20 million were part of the over-allotment option.

David Thompson, senior vice president and director, told Prospect News that the company was "very pleased" with the outcome of the financing, as it was largely oversubscribed. Thompson said subscriptions for about C$20 million were received.

"That's hard not to appreciate," he said.

In addition, during the placement process, Sea Dragon announced that it had received positive results from a drilling project on one of its drills.

On the news, "our share price practically doubled," Thompson said. "A lot of people then jumped in.

"With all the doom and gloom around, it's a pretty great story," he added.

The proceeds from the financing went toward funding the company's acquisition of Premier Egypt (NW Gemsa) BV, which holds a 10% working interest in the North West Gemsa Concession of Egypt, and for general corporate purposes.

Thompson also said that Sea Dragon was considering doing another deal in the first part of 2010, as the company was looking for other potential assets to pick up.

"We'll probably be looking for a much larger raise for a larger asset," he said.

Sea Dragon's equity (TSX Venture: SDX) dropped 1 cent, or 1.92%, to C$0.51. Market capitalization is C$72.3 million.

SpectraScience completes unit deal

Among other completed transactions, SpectraScience said it pocketed $4.33 million from a private placement of units.

The company sold 433,000 units at $10.00 each, according to a regulatory filing. Each unit held 50 series B preferred shares and 25 warrants.

The preferreds carry a dividend of 8% and can be converted into one common share. Warrants are exercisable at $0.30 for five years.

SpectraScience's stock (OTCBB: SCIE) finished steady at $0.34. Market capitalization is $23 million.

SpectraScience is a San Diego-based medical device company.

Castle Gold raises expansion funds

Castle Gold set the terms of a private placement originally announced Oct. 28, according to a press release.

The company will conduct a non-brokered private placement of shares for total proceeds of C$3.68 million. The common shares will be issued at C$1.00 per share.

Proceeds will be used to help the company with its expansion program at its El Castillo mine, as well as to fund some one-time expenses associated with its proposed acquisition by Argonaut Gold Inc.

Rory Quinn, manager of investor and public relations, said the deal should close shortly.

"I imagine pretty soon, I would say early next week," he said.

Quinn said about C$3 million of the funds would be used at El Castillo, while the remainder would be used for the acquisition.

Castle Gold's shares (TSX Venture: CSG) were unchanged at C$1.18. Market capitalization is C$88.9 million.

Castle Gold is a Toronto-based gold producer.

Lydian wraps stock sale

Lydian International settled a C$2.2 million private placement of equity, the company announced.

Of the proceeds, C$2 million was subscribed for by Macquarie Bank Ltd.

The Jersey, Channel Islands-based company sold approximately 3.33 million shares to Macquarie at C$0.60. Another 330,000 shares were sold to other investors at the same price, for proceeds of C$200,000.

Proceeds will be used for exploration and general working capital.

"We feel privileged to have Macquarie Bank now on the share register," said Dr. Tim Coughlin, president and chief executive officer, in a statement.

"Macquarie is one of the largest and best recognized resource sector institutions in the World. Macquarie joins the International Finance Corporation, which is part of the World Bank Group, Newmont Mining Corporation and the European Bank for Reconstruction and Development as Lydian's increasingly impressive institutional shareholder base."

Lydian's stock (Toronto: LYD) improved by 2 cents, or 3.13%, to C$0.66. Market capitalization is C$30.68 million.

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