Pacific Energy raises C$63.75 million; Ovoca closes £1.3 million; TTM plans C$9 million

By LLuvia Mares

New York, Oct. 19 - The popular natural resources sector continues to lead the PIPEs market. One company getting into the mix of things is Pacific Energy Resources Ltd. which announced it has raised C$63.75 million in a private placement of units. The deal, which priced at C$75 million on Oct. 2, was announced June 21 as an offering of shares and was amended to units on the pricing date.

"We needed to raise money to pay off existing debt associated with the acquisition of Alaska assets from Forest Oil and for working capital to continue the work program that may take place in Alaska and California," said a company spokesperson.

The company sold 28,976,147 units of one share and one half-share warrant at C$2.20 per unit. It originally meant to sell 34,090,909 units. Each whole warrant will be exercisable at C$2.65 for 18 months.

As previously reported, expiry of the warrants may be accelerated to 30 days if the company's share price is at least C$0.75 for 20 consecutive trading days at any time more than four months after closing.

Octagon Capital Corp., D&D Securities Co., Wellington West Capital Markets Inc. and Energy Capital Solutions were the agents.

Pacific Energy's stock (Toronto: PFE) closed at C$2.29, down C$0.02 from Thursday's C$2.30 close.

Proceeds will be used for debt repayment and for general working capital and business purposes.

Pacific Energy is an oil and gas exploration and development company based in Long Beach, Calif., with operations both onshore and offshore California and Wyoming.

"It is 97% oil and obviously with the price of oil approaching $90 dollars and getting close to $100, it's definitely well leveraged to the price of oil and we do have a domestic resource, it's not an international resource," said the spokesperson regarding their exploration of oil and gas.

Ovoca wraps £1.3 million placement

Ovoca Gold plc who announced it settled a £1,258,356 private placement of units.

The company sold 15,729,450 units of one share and one half share warrant at 8p each. Each whole transferable warrant is exercisable at 10p for one year.

"I am delighted that local government is taking an active interest in Goltsovoye and the work of Ovoca. As a company we understand the importance of maintaining good relations with the local community in which we work," said Leonid Skoptsov, company chief executive officer, in a press release.

"We see the development of Goltsovoye as an inclusive process, involving our shareholders, workers, community officials and government. We are looking forward to begin mining ore next winter and go to full production capacity in 2009."

Ovoca Gold's stock (London: OVG.L) closed at £9.75 Friday, up £0.10 from Thursday's £9.65 close.

Proceeds will be used on the evaluation and development of projects and for working capital purposes.

Dublin, Ireland-based Ovoca Gold is a precious and base metals exploration company focused on properties in Russia, Sweden and Ireland.

TTM negotiates C$9 million units

TTM Resources Inc. said it will conduct two private placements of units to raise C$9 million.

"In raising these funds, the corporation has met the first major milestone of its restructuring plan which was to ensure that the corporation is financially viable," said Michael McLellan, company president and chief executive officer, in a press release.

"The corporation now has the financial resources to address its short term liabilities and to focus on its operational and financing objectives from a position of relative strength."

The company will sell a total of 6 million flow-through units at C$1.50 apiece. It will sell 4 million units in a brokered deal with Canaccord Capital Corp. for C$6 million and it will sell 2 million in a non-brokered placement for C$3 million.

Each unit will consist of one flow-through common share and one half share warrant. Each whole warrant is exercisable for one additional common share at C$1.75 for one year.

The company's stock (TSX Venture: TTQ) closed at C$1.13 Friday, down C$0.10 from Thursday's C$1.23 close.

Proceeds will be used for exploration.

Based in Vancouver, B.C., TTM Resources is a junior resource exploration company, focused on four assets in British Columbia: The Chu Molybdenum project, the newly acquired Terrace Molybdenum project, the Deeker Creek Molybdenum project and the Moly/Gold project.

SemBioSys to raise C$6.5 million

SemBioSys Genetics Inc. plans a bought-deal private placement of units to raise C$6.5 million.

The company will sell 2.5 million units at C$2.60 apiece on a bought-deal basis to a syndicate of underwriters led by Acumen Capital Finance Partners Ltd. and including PI Financial Corp.

Each unit will consist of one common share and one half share warrant. Each whole warrant is exercisable at C$3.45 for two years.

The warrants may expire sooner if, after the first year, the 20-day average volume weighted trading price of the company's stock exceeds C$4.00. In that case, the warrants will expire 30 days after holders have been notified of such an event.

SemBioSys's stock (Toronto: SBS) closed at C$2.80, down C$0.15 from Thursday's close at C$2.94.

"We have a transformative technology that is going to change the way that drugs are made and we are addressing to the largest markets in the world," Andrew Baum, president and chief executive officer, told Prospect News.

Ross Marshall, of investor relations firm Equicom Group Inc., added: "If you are a biotechnology company you tend do raise money from time to time, so its not a case of whether they [the company] will just stop raising money from this time forward. The company does have a number of important clinical milestones through 2008."

Proceeds will be used for the advancement of plant-manufactured insulin and the cardiovascular therapeutic Apo AI in pre-clinical and clinical development.

Based in Calgary, Alta., SemBioSys is a biotechnology company developing insulin and other protein-based pharmaceuticals for metabolic and cardiovascular diseases.

Nevsun plans C$15 million

Nevsun Resources Ltd. announced it plans a non-brokered private placement of shares to raise up to C$15 million.

The company will sell 10 million common shares at C$1.50 apiece.

The company's stock (Toronto: NSU) closed at C$1.75, a C$0.01 increase from Thursday's C$1.74 close.

Closing is expected during on Oct. 26.

Proceeds will be used for working capital and to fund the early stages of construction of the company's Bisha project.

Based in Vancouver, B.C., Nevsun is a gold, copper and zinc exploration company. The company's portfolio is focused on properties in Africa with gold and base metal (copper and zinc) resources and reserves.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.