Gastem wraps first tranche of units; Sino Gas issues convertibles; China Power gets $5 million

By Stephanie N. Rotondo

Portland, Ore., Dec. 4 - Many deals were settled Friday in the private placement market, several of which came from U.S.-listed China-based companies.

Gastem Inc. said it wrapped the first tranche of its upsized placement of units. The company took in C$5.27 million of its planned C$6.25 million financing and the remainder is expected to come next week.

Among the U.S.-listed China-based companies, Sino Gas International Holdings Inc. announced it took in $5.35 million from a private placement of convertible notes. China Power Equipment Inc. also completed a deal, raising $5 million from a placement of preferred shares.

Away from that arena, Moneta Porcupine Mines Inc. pocketed C$4.2 million from a private placement of units. The company said the funding would be used for an "aggressive" exploration program.

In new deals, Kria Resources Ltd. announced a C$3 million private placement of equity. The company will sell both flow-through shares and common shares in its financing effort.

Gastem wraps first tranche

Gastem raised C$5.27 million in the first tranche of its previously announced C$6.25 million private placement of units, the company announced.

The deal originally priced at C$5 million on Nov. 20 and was increased on Nov. 24.

The Montreal-based oil and gas company is selling flow-through share units at C$0.65 per unit. The units will contain one flow-through common share and one warrant. Each warrant is exercisable at C$0.85 for 18 months.

In the first tranche, approximately 8.10 million units were issued.

Proceeds will be used for exploration activities in Quebec. The second tranche is expected to settle by Dec. 8.

Gastem's equity (TSX Venture: GMR) improved by half a cent, or 1.01%, to C$0.50. Market capitalization is C$29.6 million.

Sino Gas issues convertibles

Sino Gas International Holdings wrapped a $5.35 million private placement of 8% senior secured convertible notes, according to a regulatory filing.

The deal settled Nov. 30.

The notes mature Nov. 30, 2012 and are convertible into common stock at $0.62 per share.

Additionally, investors received warrants for approximately 8.62 million common shares. The warrants are exercisable at $0.744 until Nov. 30, 2012.

Proceeds will be used for project development and working capital.

Sino's shares (OTCBB: SGAS) gained 7 cents, or 11.11%, to $0.70.

Sino Gas International holdings is a Beijing-based provider of natural gas distribution systems in China.

China Power raises $5 million

Among other China-based U.S.-listed companies, China Power Equipment said it took in $5 million from a private placement of series B convertible preferred shares.

The company sold approximately 4.16 million of the shares, which are convertible into one common share.

The preferreds do not pay dividends, nor do they carry voting rights.

Investors also received warrants for 1 million common shares. They are exercisable at $2.40 for three years.

The Xian, China-based company "will use the net proceeds in its Chinese operating subsidiary to expand its amorphous alloy transformer core production primarily by completing the current plant under construction, by improving existing production lines, and by increasing working capital," according to a press release.

"We are very pleased to complete this financing that will help continue our growth and success in the high-growth amorphous alloy core business," said Yong Xing Song, chairman, in the release. "Our capacity expansion will enable us to win and deliver larger orders for transformer cores and to generate very attractive positive operating cash flows. The positive cash flows will also help us expand into our new line of amorphous core transformers.

"Because China is upgrading to amorphous alloy electric transformers in both urban and rural areas, the demand for our amorphous alloy cores and transformers is expected to continue to increase at an increasing rate for several years," he concluded.

China Power's stock (OTCBB: CPQQ) declined a nickel, or 1.43%, to $3.45.

Moneta settles units sale

Moneta Porcupine Mines settled a C$4.2 million private placement of units, the company said in a press release.

According to the terms of the non-brokered financing, Moneta sold 12 million units at C$0.35 each. The units consisted of one flow-through common share and one half-share warrant. Whole warrants are exercisable at C$0.45 for 18 months.

Proceeds will be used for exploration and development.

"Moneta will now embark on its most aggressive exploration program since the Barrick joint venture on the Southwest Zone from 1994-1997," said Ian C. Peres, president and chief executive officer, in the release.

"Moneta now has over $6M in funds committed to exploration, and while the Golden Highway Project remains top priority, exploration targets on Moneta's other highly prospective and underexplored core projects can now be prioritized and advanced."

Moneta's shares (Toronto: ME) fell 3 cents, or 7.32%, to C$0.38. Market capitalization is C$41.8 million.

Moneta Porcupine Mines is a Timmins, Ont.-based mineral resource company.

Kria looks for exploration funds

Kria Resources is seeking C$3 million via a private placement of equity.

The company will issue 10 million flow-through shares at C$0.20 each in the non-brokered transaction. In addition, Kria will sell 5 million common shares at C$0.20 per share.

Proceeds will be used for exploration and development, as well as working capital.

Calls seeking comment were not returned Friday.

Kria's stock (TSX venture: KIA) dipped 1½ cents, or 6.25%, to C$0.225. Market capitalization is C$489,730.

Kria Resources is a Toronto based mineral exploration company.

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