Kodiak seeks exploration funds; NGEx to sell shares; Rio Alto Mining placement oversubscribed

By Stephanie N. Rotondo

Portland, Ore., Dec. 1 - The private placement market was dominated by foreign issuers Tuesday, as the last month of the year began.

Kodiak Exploration Ltd. is seeking funds for exploration at its Hercules Gold Mine, the company said. As such, it will sell flow-through shares in its effort to raise C$8 million.

Another mineral and resource exploration company, NGEx Resources Inc., also brought a deal to market. The company is hoping to raise C$7 million by privately placing equity in a non-brokered transaction.

Among completed financings, Rio Alto Mining Ltd. wrapped a private placement of stock that was heavily oversubscribed and resulted in total proceeds of C$6.14 million.

Americas Petrogas Inc. also settled a financing, completing its second tranche for proceeds of C$500,000. In total, the company raised C$5 million.

Wren Extra Care Group plc inked an equity purchase agreement with a Bahamas-based hedge fund. The fund will purchase common stock at a discount over the next three years, up to £3 million.

Kodiak seeks exploration funds

Kodiak Exploration, a Vancouver, B.C.-based mineral exploration company, announced a C$8 million private placement of flow-through shares.

The deal includes a C$2 million greenshoe.

The company will sell the shares at C$0.65 per share on a bought-deal basis.

Proceeds will be used for exploration and development at Kodiak's Hercules gold mine.

"With the recent success at our Hercules project, including initiating our initial resource estimate and scoping for possible underground exploration of the Golden Mile, coupled with encouraging drill results at West Geraldton, Milestone and Brenbar, we are looking forward to an aggressive exploration program in 2010," commented Brian J. Maher, president and chief operating officer, in a press release.

"The flow-through financing allows us to allocate our hard dollar treasury, in excess of $17,000,000 to other projects, infrastructure and acquisition opportunities."

Kodiak's stock (TSX Venture: KXL) fell 5 cents, or 8.77%, to C$0.52. Market capitalization is C$49.4 million.

NGEx to sell common shares

NGEx Resources intends to raise C$7 million via a private placement of equity, according to a press release.

The company will sell 10 million common shares in the non-brokered financing. Each share will be sold at C$0.70 per share.

Proceeds will be used for exploration and working capital.

Calls seeking comment were not returned Tuesday.

NGEx's shares (Toronto: NGQ) dipped 3 cents, or 4.17%, to C$0.69. Market capitalization is C$94 million.

NGEx Resources is a Vancouver, B.C.-based multi-commodity exploration company.

Rio Alto placement oversubscribed

In settled deals, Rio Alto Mining sealed C$6.14 million from a private placement of common shares.

The deal originally priced at C$3 million on Nov. 19.

Each share was issued at C$0.36.

Proceeds will be used for development projects at the la Arena Gold Oxide project, as well as for general corporate purposes.

"We expected knowledgeable Peruvian mining investors to take the opportunity to participate in this offering," said Feisal Somji, director and chief executive officer, in a statement.

"What we didn't fully anticipate was the overwhelming demand, which is a positive endorsement for the quality of the La Arena Project and the company's local management. It is also a reflection of the effort made by Kallpa SAB. The proceeds of this placement will allow us to maintain the development schedule for the La Arena gold oxide mine."

Rio's equity (TSX Venture: RIO) dropped a penny, or 2.5%, to C$0.39. Market capitalization is C$29.5 million.

Rio Alto Mining is a Vancouver, B.C.-based mining company.

Americas wraps final tranche

Americas Petrogas also settled a deal, taking in C$5 million.

The Calgary, Alta.-based oil and gas company said it closed on the second tranche of its previously announced financing, raising C$500,000.

The deal originally priced on Nov. 24 and the first tranche of C$4.5 million settled Nov. 26.

Americas sold approximately 11.11 million common shares at C$0.45 each. Of those shares, approximately 1.11 million were part of the second tranche.

"With the closing of the C$5 million private placement, we are well positioned to carry ourselves through to production and positive operating cash flow from our Medanito Sur project and to continue our exploration plans for our potash, oil and gas activities," said Barclay Hambrook, president and CEO, in a press release.

Americas' stock (TSX Venture: BOE) gained 2 cents, or 5%, to C$0.42. Market capitalization is C$37 million.

Wren inks £3 million EPA

Wren Extra Care secured a three-year £3 million equity purchase agreement from Brittany Capital Management Ltd., the company said in a news release.

Brittany Capital is a Bahamas-based fund advised by Southridge LLC.

Brittany will purchase ordinary shares at a 10% discount to the market price. The shares will be purchased in tranches of no more than £100,000 or, if lower, an amount equal to 50% of the value of average trading volume in Wren shares over the 10 trading days prior to drawdown.

In addition, the investor will receive 500,000 warrants, exercisable at 10p for five years.

"We are extremely pleased to have attracted a new institutional investor to the Wren growth story, particularly so given the selectiveness of investors in the current environment," said Paul Treadaway, founder and CEO of Wren, in the release.

"Wren's goal in securing the EPA Facility is to have in place a facility that will enable the group to raise capital efficiently at higher valuations, as it moves its ExtraCare development programme on to the next stage and communicates positive progress. Having observed the successful use of the EPA facility by a number of other AIM companies, we are confident that this facility will provide a useful funding instrument for Wren," Treadaway said.

Added Stephen Hicks, chairman of Southridge: "Southridge's investment philosophy is focused on finding well run and exciting business opportunities globally. Accordingly we are delighted to announce this relationship with Wren Extra Care Group plc."

"We look to provide our portfolio companies with a wide array of financial services including the ability to raise capital at their behest on preferential terms. We believe we have accomplished this goal through the EPA Facility, which will allow Wren to continue to execute their strategy in what is clearly an attractive and high growth space in the U.K."

Wren's shares (London: WREN) closed at 9p. Market capitalization is £4.85 million.

Wren Extra Care is a Surrey, England-provider of elderly living care.

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