Norton Gold aims for A$40 million; Vero seeks exploration funds; Far West Mining to sell units

By Stephanie N. Rotondo

Portland, Ore., Oct. 19 - The private placement market was dominated by mineral resource companies Monday, with deals ranging from the low-single digits to rather large-sized double-digits transactions.

Norton Gold Fields Ltd. brought one of the day's biggest financings. The company said it was seeking more than A$40 million via a private placement of equity. The funds raised from the deal will be used for the company's growth plans.

Meanwhile, Vero Energy Inc. said it was looking for exploration funding. As such, it will conduct a C$12.5 million private placement of flow-through shares.

Far West Mining Ltd. also brought a deal. The company is aiming for C$10 million. Far West will sell equity units, which will be purchased by a single investor.

Among the day's completed deals, Maudore Minerals Ltd. wrapped a heavily oversubscribed private placement of stock, according to company spokesperson. The source said that investor response was "tremendous."

In direct placements, Rexahn Pharmaceuticals Inc. announced a $5 million registered direct offering of stock and warrants. The proceeds will be used for research and development.

Macquarie Harbour Mining Ltd. said it pocketed A$3 million from a private sale of stock. Proceeds will be used for the completion of the Aluminium Salt Slag Recovery Project.

Norton aims for A$40 million

Norton Gold Fields will raise A$40.5 million via a private placement of ordinary shares, according to a press release.

The shares will be sold at A$0.3283 per share in two tranches. The first tranche will include 62.7 million shares, expected to be issued this week. The remaining 60.7 million shares will be sold once shareholder approval is secured. The company expects to hold a vote on the matter at its annual general meeting on Nov. 30.

Investors participating in the deal include international resource funds Sprott Asset management in Toronto, Libra Advisors in New York, Baker Steel Capital Managers in London and Goldmax Asia Investments of Hong Kong.

Proceeds will be used for Norton's growth plans, "including the Mount Morgan Mine Project in Queensland, and the capital program at Paddington including extensions for the Homestead underground project," the company said in the release.

"The placement strengthens the company's financial position and broadens our share register," remarked A. Anthony McLellan, chairman of Norton, in the press release. "I am very pleased to welcome institutional and sophisticated investors Sprott, Libra and Goldmax to the register and also welcome further investment from Baker Steel.

"Investor interest in Norton has been strong both domestically and internationally, and the placement at a premium to the market was oversubscribed," he added.

"The completion of this raising means Norton now has funding certainty for its growth program. The placement followed careful consideration by the board of the several funding and development options available to it and how to make the most of those opportunities."

Norton's equity (Australia: NGF) closed at A$0.37.

Norton Gold Fields is a South Brisbane, Australia-based gold producer.

Vero seeks exploration funds

Vero Energy will conduct a C$12.5 million private placement of flow-through shares, the company announced.

Under the terms of the bought deal led by a syndicate of underwriters, the company will issue approximately 2.21 million of the shares at C$5.65 per share.

Proceeds will be used for exploration and settlement is expected by Nov. 3.

A company spokesperson could not be reached for comment Monday.

Vero's stock (Toronto: VRO) dropped 8 cents, or 1.65%, to C$4.77. Market capitalization is C$201 million.

Vero Energy is a Calgary, Alta.-based junior oil and gas exploration and development company.

Far West to raise C$10 million

Far West Mining plans to raise C$10 million from a private placement of common share units.

The units will be sold to Quadra Mining Ltd.

Far West will sell 4.90 million of the units at C$2.04 per unit. Each unit will contain one common share and one warrant. The warrants are exercisable at C$2.75 for two years.

Proceeds will be used to fund development of the company's copper-iron-gold Santo Domingo property in Region II in Chile. The development will include additional drilling, as well as metallurgical testing.

"We are extremely happy to be associated with such a dynamic and development driven company and we look forward to progressing the Santo Domingo property to the next phase of development with them," said Rick Zimmer, president and chief executive officer, in a statement.

Settlement is expected by Nov. 13.

Far West's stock (Toronto: FWM) gained 85 cents, or 39.53%, to C$3.00. Market capitalization is C$155 million.

Far West Mining is a Vancouver, B.C.-based mineral exploration company.

Maudore deal oversubscribed

Maudore Minerals took in C$8 million from an oversubscribed non-brokered private placement of stock.

The company sold 3.2 million common shares at C$2.50 per share.

Anglo Pacific Group plc, Maudore's largest shareholder, participated in the financing to maintain is 14% share interest in Maudore.

"This is the fourth consecutive private placement Anglo Pacific has participated in with us, and I'm delighted to have them continue as a major shareholder of Maudore," said Ronald Shorr, president, CEO and director, in a press release.

"The response was tremendous," Shorr told Prospect News, adding that the deal was "considerably oversubscribed."

"The stock has been going up ever since we started to receive the money over the last couple of weeks," Shorr noted. "And I believe it's up a bunch today."

Proceeds from the financing "will enable Maudore to aggressively expand exploration of its 100% owned Comtois High Grade Gold Project in Quebec," the release said.

Maudore's stock (TSX Venture: MAU) improved by 37 cents, or 11.04%, to C$3.72. Market capitalization is C$68.6 million.

Maudore Minerals is a Montreal-based mineral exploration company.

Rexahn announces direct offeirng

Rexahn Pharmaceuticals, a Rockville, Md.-based biopharmaceutical company, arranged a $5 million registered direct offering of common shares, the company said in a news release.

Rexahn will issue approximately 6.07 million shares at $0.8234 per share. Warrants equal to another 2.12 million shares are also included.

The warrants are exercisable at $1.00 for five years.

Proceeds will be used, in part, for research and development.

Rexahn's equity (Amex: RNN) fell 4 cents, or 5.21%, to $0.739. Market capitalization is $44.9 million.

Macquarie takes in A$3 million

Macquarie Harbour Mining raised A$3 million from a private placement of equity.

The company sold 15 million ordinary shares at A$0.20 each.

Proceeds will be used for the completion of the Aluminium Salt Slag Recovery Project.

"The placement of shares to raise $3 million is an important development for Macquarie Harbour Mining," said Frank Rogers, managing director, in a statement.

"The acquisition of the Aluminium Salt Slag facility, global rights to the proprietary technology, ongoing processing contracts and significant landfill for re-processing, affords MHM significant profit and cashflow potential.

"These will be reinvested in the growth of the aluminium division, development of the Silica project and also to fund our ongoing exploration programs for gold, nickel, copper and iron ore on our tenements.

"With significant potential to grow the aluminum division overseas, and immense potential to develop significant mineral projects I am excited to continue to grow this company and deliver robust returns to our shareholders," he concluded.

Macquarie's shares (Australia: MHM) ended at A$0.25.

Macquarie Harbour Mining is a West Perth, Australia-based mineral resources exploration company.

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