Noront settles stock sale; North American Galvanizing issues notes; Novelos secures $9 million

By Stephanie N. Rotondo

Portland, Ore. Aug. 26 - Several deals got settled Wednesday and the mining sector came out with several transactions.

Noront Resources Ltd. announced it had secured C$25 million from a private stock sale. The deal included a full exercised greenshoe.

North American Galvanizing & Coatings Inc. also completed a deal, bringing in $7.3 million. The company sold subordinated notes, along with warrants.

Meanwhile, Novelos Therapeutics Inc. said it inked a deal with Purdue Pharma LP to purchase up to $9 million in stock and warrants. Purdue has already purchased about a third of the maximum amount.

Kiska Metals Corp. will take in C$4 million from a private placement of units. Kilo Goldmines Ltd. and Golden Predator Royalty & Development Corp. also announced units sales, for proceeds of C$10 million and C$7 million, respectively.

Noront settles stock sale

Noront Resources closed on a C$25 million private placement of equity, the company announced.

The deal originally priced at C$20 million on Aug. 6. A C$5 million greenshoe was added Aug. 10 and was fully exercised.

The Toronto-based gold exploration company sold approximately 8.92 million flow-through shares at C$2.80 per share.

Proceeds will be used for exploration on the McFauld's Lake project, "which include significant and multiple, high-grade nickel-copper-platinum-palladium, chromite and vanadium discoveries in an area known as the 'Ring of Fire,' an emerging multi-metals district located in the James Bay Lowlands of Ontario," according to a press release.

Joanne Jobin, vice president of corporate communications, said Noront was "very pleased" with the outcome of the deal.

"We've been told this was the largest single flow-through share raise this year," she said in an interview with Prospect News.

Jobin said that the first C$20 million was "filled within 48 hours." At that time, the company decided to add the greenshoe.

Noront's shares (TSX Venture: NOT) fell 2 cents, or 0.93%, to C$2.13. Market capitalization is C$328 million.

North American takes in $7.3 million

North American Galvanizing & Coatings pocketed $7.3 million from the sale of 10% subordinated notes and warrants.

The deal originally priced at $10 million on June 25.

Investors received approximately 1.09 million warrants along with the notes. The warrants are exercisable at $5.20.

Calls made to the company seeking comment went unreturned Wednesday.

North American Galvanizing's equity (Nasdaq: NGA) increased 3 cents, or 0.56%, to $5.39. Market capitalization is $88.1 million.

North American Galvanizing & Coating is a Tulsa, Okla.-based manufacturing services company focusing on galvanizing and coatings.

Novelos seeks $9 million

Among other completed deals, Novelos Therapeutics said it raised $9 million from a private placement of stock.

The company will sell approximately 13.64 million common shares to Purdue Pharma LP. Purdue will also receive warrants equal to approximately 4.77 million additional shares at a strike price of $0.66 until Dec. 31, 2015.

Purdue has already purchased approximately 5.30 million shares, along with warrants for another 1.85 million shares, for total proceeds of $3.5 million.

"I am very pleased with Purdue's continued support, providing Novelos funds for a robust development program thru mid-2010," said Harry Palmin, president and chief executive officer of Novelos, in a press release. "We expect our pivotal 900-patient Phase 3 lung cancer trial to conclude in early 2010. The trial was fully enrolled in March 2008, with the primary endpoint of increased median overall survival to be evaluated following the occurrence of 725 deaths."

Novelos' shares (OTCBB: NVLT) dropped 2 cents, or 2.5%, to $0.78. Market capitalization is $36.8 million.

Novelos Therapeutics is a Newton, Mass.-based biotechnology company

Kiska to raise nearly C$5 million

Kiska Metals is looking to raise C$4.95 million via a private placement of equity units.

The company intends to issue 9 million units, with each unit containing one common share and one half-share warrant. The units will sell at C$0.55 on a best-efforts basis and each whole warrant is exercisable at C$0.80 for 18 months.

Should the company's stock price trade at C$1.10 or higher for 20 consecutive trading days, the warrants will expire 30 days following notice.

Proceeds will be used for exploration programs at Kiska's Whistler Project in Alaska, as well as for general corporate purposes. Settlement is expected by Sept. 14.

Calls made to the company seeking comment went unreturned Wednesday.

Kiska's stock (TSX Venture: KSK) improved by a penny, or 1.64%, to C$0.62. Market capitalization is C$15.4 million.

Kiska Metals is a Toronto-based mineral exploration company.

Kilo plans C$10 million deal

Kilo Goldmines arranged a C$10 million placement of units, according to a press release.

Kilo will sell 22.25 million units at C$0.45 per unit. Each unit will hold one common share and one half-share warrant. The whole two-year warrants are exercisable at C$0.60.

Peter Hooper, executive chairman of the company, said the terms were "fair," given the company's current share price.

Hooper said that the current volume-weighted average price was somewhere around 47 cents per share, "and we're going to market at 45 [cents], so that's pretty close."

The funds will be used for development and exploration at the company's Congo-based properties and Hooper said the proceeds raised in this financing should "last about a year."

"We're at the beginning of a cycle here," he said. There is "lots of potential in the Kilo-Moto area," he noted, pointing to recent acquisitions and projects in the area.

"Hope fully we can get more than C$10 [million]," he added. "We'll see how the market reacts."

The deal is expected to settle by Sept. 22.

Kilo's equity (TSX Venture: KGL) closed unchanged at C$0.45. Market capitalization is C$1 million.

Kilo Goldmines is a Toronto-based gold exploration company.

Golden Predator to sell units

Golden Predator Royalty & Development said it would take in C$7 million from a private placement of units.

The company will issue 12.5 million of the units at C$0.56 per unit. Each unit will hold one common share and one warrant, with each warrant exercisable at C$0.84 for two years.

William Sheriff, the company's chairman, told Prospect News that the deal was "almost instantly fully subscribed."

"Now it's just a matter of corralling the necessary documents," he said.

Sheriff speculated that the financing would close "within a week or so."

Proceeds will be used for exploration and working capital.

Golden Predator's stock (TSX Venture: GPD) declined 2 cents, or 3.17%, to C$0.61.

Golden Predator Royalty & Development is a Vancouver, B.C.-based metals producer.

© 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.