Platmin to issue convertibles; Timminco aims for C$10.99 million; Malaga closes first tranche

By Stephanie N. Rotondo

Portland, Ore., May 6 - Platmin Ltd., a mining company, brought one of Thursday's largest PIPE deals.

The company is seeking $135 million from a private placement of convertible debentures. Platmin has already lined up three investors who will purchase the entire offering. The placement is being done in conjunction with a prospectus offering aimed at raising $250 million.

Meanwhile, Timminco Ltd. publicized its plan to raise nearly C$11 million via a private placement of equity. A major stockholder has agreed to subscribe for the bulk of the shares, which will increase its total stake.

Malaga Inc. wrapped the first tranche of its C$6 million private placement of units and subscription receipts, raising C$2.75 million. Units were issued in the first tranche and the receipts will be sold in the second.

BE Resources Inc. also intends to sell units in an effort to raise C$3 million. The proposed funding will be used for exploration activities.

And ZoomMed Inc. took in C$2 million from a planned C$2.7 million private placement of units. The remaining funds must be raised by June 11.

Platmin to sell convertible debt

Platmin, a Centurion, South Africa-based mineral exploration company, said it would sell $135 million of convertible debentures in a private placement.

Three investors have agreed to participate in the financing, including Pallinghurst for $30 million, Ridgewood Investments (Mauritius) Pte Ltd. for $100 million and Investec Bank Ltd. for $5 million.

The private placement is being done as part of a larger capital raise. The company also sold $250 million common shares via a prospectus offering.

"During our recent funds-raising initiative we found strong support from our existing and new shareholders for the PGM sector in general, and our initiatives in particular," remarked Brian Gilbertson, chairman, in a press release.

"The conclusion of that process leaves Platmin in a strong financial position, well-placed to complete the development of the flagship Pilanesberg Platinum Mine, and to support any development initiatives in the region, particularly of near-surface, low-cost projects."

Settlement of both transactions is expected by May 13.

Platmin's stock (Toronto: PPN) fell 2 cents, or 1.64%, to C$1.20. Market capitalization is C$534.02 million.

Timminco aims for C$10.99 million

Timminco announced a C$10.99 million private placement of common shares.

The Toronto-based company will issue 16.5 million of the shares at C$0.65 per share.

AMG Advanced Metallurgical Group N.V., an affiliate of Timminco, has agreed to purchase 11.3 million common shares for proceeds of C$7.4 million. AMG currently holds 38.6% of Timminco's outstanding shares. Upon completion of the financing, AMG will hold a 41.1% stake.

Calls seeking further comment were not returned Thursday.

Timminco's shares (Toronto: TIM) declined 4 cents, or 5.63%, to C$0.67. Market capitalization is C$121 million.

Timminco is a produce of silicon metal for the chemical, aluminum, electronic and solar industries.

Malaga wraps first tranche

Malaga settled the first tranche of a C$6 million private placement of units and subscription receipts, taking in C$2.75 million.

The first portion of the deal closed May 5.

The Montreal-based mining company sold approximately 18.32 million of the units in the non-brokered placement at C$0.15 each. The units held one common share and one warrant, which is exercisable at C$0.25 for two years.

In the next tranche, Malaga intends to sell approximately 21.66 million subscription receipts at C$0.15 each. The receipts are convertible into one unit.

Resource Capital Fund V LLP will invest C$5 million in the financing. The fund has subscribed for approximately 16.66 million units and 16.66 million subscription receipts.

Proceeds will be used for upgrades at the company's Pasto Bueno mill, as well as for the installation of additional equipment, for exploration and drilling work and for general corporate purposes.

"We are very pleased to have RCF as a new cornerstone investor," said Pierre Monet, Malaga's chief financial officer, in a press release. "It has an excellent reputation and its expertise in the mining sector will allow us to achieve our expansion objectives."

"This financing is the first step in establishing our Pasto Bueno mining operation as the premiere producing tungsten mine in the Western world," added Jean Martineau, president and chief executive officer. "We are pleased with the confidence that RCF and new investors have placed in us and the tangible support as evidenced by their investment."

Malaga's equity (Toronto: MLG) gained 1½ cents, or 13.64%, to C$0.125. Market capitalization is C$19.2 million.

BE plans C$3 million sale

BE Resources plans to raise C$3 million via a private placement of units, according to a press release.

The company will sell 10 million units at C$0.30 each. The units will consist of one common share and one half-share warrant.

Whole warrants are exercisable at C$0.50 for two years.

Proceeds will be used for drilling activities at the company's Warm Springs property, as well as for working capital.

"Drilling is estimated to take approximately 3 weeks to complete as the holes are completed and the drill rig moved to the next hole location across the approximate [half] mile diameter structure," said David Tognoni, president and CEO, in the release. "Subsequent assay turnaround time is estimated to be 30 days."

BE's stock (TSX Venture: BER) dipped 3½ cents, or 10.94%, to C$0.285. Market capitalization is C$9.66 million.

BE Resources is a Toronto-based junior mineral exploration company.

ZoomMed seals C$2 million

Brossard, Quebec-based ZoomMed, a seller of prescription management products and laboratory equipment, pocketed C$2 million of a C$2.7 million private placement of units.

The deal originally priced April 27.

In this tranche, the company sold 10 million units at C$0.20 each. Each unit contained one common share.

The closing of the final tranche must be completed by June 11.

Proceeds will be used to develop new services and for marketing activities aimed at increasing revenues and cash flow.

ZoomMed's shares (TSX Venture: ZMD) increased half a cent, or 2.94%, to C$0.175. Market capitalization is C$16.7 million.

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