Nevsun to raise C$32 million; China Agritech wraps sale; China Infrastructure closes placement

By Stephanie N. Rotondo

Portland, Ore., Oct. 20 - Many private placements came to market Tuesday from a variety of sectors, including mineral resources, biopharmaceutical and U.S. traded-China-focused companies.

Nevsun Resources Ltd. announced it would raise more than C$32 million via a private placement of stock. The proceeds could be used for exploration projects.

China Agritech Inc. meanwhile said it privately placed $15 million of common shares. A unit of the Carlyle Group purchased the shares.

China Infrastructure Construction Corp., another China-focused business, also wrapped a stock sale. The deal originally priced at $5 million, but the company actually raised double that amount in the financing.

Elsewhere, A.P. Pharma said it was planning an $8.1 million private placement of equity and warrants. The company intends to use the funds to advance its drug candidate.

Also in the biopharma space, Alfacell Corp. said it raised C$3.25 million placement of convertible note units.

Donner Metals Ltd. brought a C$3.1 million private placement of units to market. The deal includes both brokered and non-brokered tranches.

Nevsun to raise over C$32 million

Nevsun Resources is planning a C$32.78 million private placement of equity, according to a press release.

The company will issue 11.5 million common shares at C$2.85 per share.

Proceeds from the financing will be used for working capital, which could include exploration and development of the Bisha Project. Settlement is expected by Oct. 30.

Calls seeking comment were not returned Tuesday.

Nevsun's stock (Toronto: NSU) dropped 8 cents, or 2.60%, to C$3.00. Market capitalization is C$381 million.

Nevsun Resources is a Vancouver, B.C.-based gold, copper and zinc exploration company.

China Agritech settles stock sale

China Agritech took in $15 million from a private placement of common shares, the company said in a regulatory filing and subsequent press release.

The deal settled Oct. 19. The investor was Carlyle Asia Growth Partners, the growth capital arm of the Carlyle Group.

The investor purchased approximately 1.39 million common shares and also received warrants for an additional 928,514 shares. The warrants are initially exercisable at $10.77 for 30 months.

The investment by Carlyle brings the company's holdings to 16.5% of China Agritech's outstanding equity.

The terms of the deal include a clause which allows China Agritech to issue to the investor additional stock should the company's net income target of $11.5 million for fiscal 2009 not be reached. In that event, the warrant strike price will also be reduced.

Carlyle also has the right to appoint one director to China Agritech's board and also to participate in future financings.

"This strategic investment by a prestigious investment firm like the Carlyle Group, strengthens our shareholder base," said Yu Chang, chairman and chief executive officer, in the release. "We believe their investment is an endorsement of our strategic plans and our ability to generate shareholder value.

With the new financial and global resources from Carlyle, we will be able to accelerate our growth plans to further penetrate the large fertilizer market in China and strengthen our leadership position in our industry. We look forward to the strategic assistance Carlyle will provide to help us reach our long-term goals."

Added Wayne Tsou, managing director and head of Carlyle Asia Growth Partners: "We are excited to establish a strategic relationship with China Agritech and broaden our reach to the agricultural industry, one of the pillar industries of China."

"Under the leadership of a capable management team, China Agritech has built a successful track record and is poised for accelerated growth in the years ahead," Tsou said. "We are dedicated to providing global resources and expertise to support China Agritech's further expansion."

China Agritech's equity (Nasdaq: CAGC) fell $2.85, or 15.82%, to $15.17. Market capitalization is $123 million.

China Agritech is a Beijing-based manufacturer of liquid fertilizer.

China Infrastructure closes equity deal

Among other U.S.-traded China-focused companies, China Infrastructure announced it had completed an oversubscribed $10 million private placement of stock on Oct. 16.

The company sold approximately 2.56 million common shares at $3.90 per share.

"This financing was twice as large as originally planned, and will allow us to build on our strength as one of Beijing's major ready-mix concrete suppliers," said Yang Rong, chairman and founder, in a statement. "We are pleased to complete our first-ever external fundraising in the U.S. capital markets, and will continue our expansion in North East China."

China Infrastructure's equity (OTCBB: CHNC) closed steady at $4.00.

China Infrastructure is a Denver-based producer of ready-mix concrete materials in Beijing.

A.P. Pharma plans stock placement

Redwood City, Calif.-based A.P. Pharma negotiated an $8.1 million private placement of stock and warrants, the company said in a news release.

The company may raise another $5 million in a future tranche.

Under the terms of the deal, A.P. Pharma will issue 8 million common shares at $0.88 per share. Investors will also receive warrants for approximately 4 million additional shares at $0.125 each.

Investors also have the option to purchase up to 5.2 million shares at $0.97 before May 14, 2010.

The investors participating in the deal include Baker Brothers Investments, Tang Capital Partners, Tavistock Life Sciences and Deerfield Partners.

Proceeds will be used for operations and manufacturing, as well as development and regulatory activities associate with securing approval on its APF530 drug candidate.

A.P. Pharma's shares (Nasdaq: APPA) declined $0.0403, or 4.58%, to $0.8397. Market capitalization is $26.7 million.

Alfacell takes in C$3.25 million

Alfacell, a Bloomfield, N.J.-based biopharmaceutical company, said it settled a $3.25 million private placement of convertible note units in a regulatory filing.

The deal closed Oct. 19.

Alfacell sold 65 units containing one $50,000 5% senior secured convertible promissory note, a series A warrant and a series B warrant. The notes come due Oct. 19, 2012 and are convertible into common stock at $0.15 per share.

The series A warrants are exercisable at $0.15 for three years. The amount of shares per exercised warrant will be equal to the number of shares into which the note is convertible.

The series B warrants are exercisable at $0.25 for three years and will also equal the number of shares received per each converted note.

Charles Muniz, president, CEO and chief financial officer, subscribed for 20 of the units, according to a press release. Certain trusts and individuals associated with James O. McCash, a current investor, subscribed for another 20 units and Europa International Inc. subscribed for 15 units. Unilab LP purchased the remaining 10 units.

Calls seeking comment were not returned Tuesday.

Alfacell's shares (Pink Sheets: ACEL) slipped $0.089, or 26.18%, to $0.251. Market capitalization is $11.8 million.

Donner seeks C$3 million

Donner Metals will conduct a C$3.1 million private placement of units, the company announced.

The company will raise C$2 million from the brokered placement of 5 million common-share units. Each unit will hold one common share and one half-share warrant. Each unit will be issued at C$0.22 and each whole warrant is exercisable at C$0.35 for one year.

The remaining funds will come from a non-brokered placement of 8 million flow-through units. Each unit will consist of one flow-through common share and one half-share warrant. The warrants bear the same exercise price as the brokered placement.

Proceeds will be used for exploration projects related to the company's Matagami Zinc/Copper project, as well as for general working capital.

A company spokesperson was unavailable for comment Tuesday.

Donner's stock (TSX Venture: DON) ended unchanged at C$0.205. Market capitalization is C$14.1 million.

Donner Metals is a Vancouver, B.C.-based mineral exploration company.

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