Extract negotiates A$30.53 million; Eastmain plans C$14 million; Monarch gets $5.07 million

By Devika Patel

Knoxville, Tenn., June 13 - Extract Resources Ltd. said it has agreed to raise A$30.53 million by selling ordinary stock through agents BY Ltd., Patersons Securities and Haywood Securities, Eastmain Resources Inc. arranged a C$14 million units' sale, which the company will use to develop its Clearwater gold project and Monarch Financial Holdings, Inc. raised $5.07 million in a stock sale, which settled after the close on Thursday.

Extract plans A$30.53 million sale

Sydney, Australia-based Extract Resources said it has committed to conduct a A$30.53 million private placement of shares, priced at A$1.10 apiece.

The company will sell the 27.75 million shares through agents BY Ltd. and Patersons Securities in Australia and Haywood Securities in the United Kingdom.

Proceeds will be used for exploration and development.

"We are delighted to welcome some new high quality institutional investors to our register," Extract Resources' managing director Peter McIntyre said of the financing in a press release.

"The company continues to develop the potential of its projects and has now secured sufficient funding to further advance them. I anticipate that the next 6 to 12 months will be a period of significant expansion in our resource potential," McIntyre added.

The resource exploration company's shares (Australia: EXT) dropped 1.71%, or A$0.02, to close at A$1.15 on Friday.

Eastmain prices C$14 million

Eastmain said it will raise C$14 million by selling units of one common share and one half-share warrant. The deal priced for C$11.9 million and was increased a few hours later.

The company plans to sell 10 million of the units at C$1.40 apiece.

The deal is being conducted by a syndicate of underwriters led by Macquarie Capital Markets Canada Ltd. and including Genuity Capital Markets and Laurentian Bank Securities. The underwriters have a greenshoe for an additional 1.5 million units, or C$2.1 million. The greenshoe was originally for 1,275,000 units.

Proceeds will be used for continued development of the company's Clearwater gold project that hosts the Eau Claire Deposit, the Eleonore South joint venture, the Eastmain Mine and other advanced exploration properties in Quebec and Ontario.

In a June 12 press release, the company announced pleasing results from its Eau Claire gold deposit.

"We are extremely impressed with these drill results. These high grade assays confirm our interpretation that the potential for increasing resource ounces at the Eau Claire gold deposit is excellent," Eastmain's spokesman Donald J. Robinson said in the release.

"These gold grades are comparable to those reported in the richest gold district in the Canadian Shield - Red Lake - and are much higher than the previously stated resource grade for Eau Claire," Robinson said.

The Toronto-based company is a precious metals exploration and development company. Its shares (Toronto: ER) slipped 4.86% Friday, or C$0.07, to close at C$1.37.

Monarch wraps $5.07 million

Monarch filed an 8-K with the Securities and Exchange Commission after the close on Thursday saying it settled a $5.07 million private placement of stock on June 6. The deal also was announced in a company press release.

The company sold 69,802 shares at $9.90 per share to members of the corporate board of directors and senior management for $691,039.80, and 473,657 shares at $9.25 apiece for $4.38 million.

It intends to use the proceeds for working capital and general corporate purposes, including supporting its growth initiatives.

"We are pleased with the success of this equity offering," Monarch's chief operating and financial officer Brad E. Schwartz said of the financing. "The investors who participated clearly recognize the significant prospects for the future of our company and the strength of our management team that will lead us in the years ahead.

"Unlike many other banking companies that needed to sell capital due to loan losses and poor asset quality, we raised this capital to support growth and maintain our already strong balance sheet."

The Chesapeake, Va., bank holding company's shares (Nasdaq: MNRK) dropped 1%, or $0.10, to close at $9.90 on Friday. Its shares closed at $10.00 on Thursday.

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