Northern Freegold announces two deals; Petro-Geo deal oversubscribed; Bannerman to sell stock

By Stephanie N. Rotondo

Portland, Ore., May 28 - Thursday brought yet another glut of deals to the private placement market, with most centering on the mining and mining-related industries.

Northern Freegold Resources Ltd. announced two deals on Thursday. The first was a C$7 million bought deal, under which the company sold 8 million equity units. The company also announced a non-brokered placement for up to C$3 million. The terms of both deals were identical.

Meanwhile, Petroleum Geo-Services ASA completed an oversubscribed placement of stock. The book closed within an hour and was oversubscribed by five times, the company said.

Bannerman Resources Ltd. said it will sell 30 million shares of ordinary stock in its effort to raise A$30 million. Hathor Exploration Ltd. also sold shares - of the flow-through variety - in its C$8 million bought deal.

Also, GenVec Inc. plans to raise $6 million via a registered direct offering of units. The funds will go toward furthering the company's product lines.

Northern announces two deals

Northern Freegold Resources announced two deals Thursday, through which the company plans to raise up to C$7 million.

First, Northern Freegold said it entered into an agreement with a group of underwriters led by Canaccord Capital Corp. for a placement of 8 million units in a C$4 million bought deal. The units will consist of one common share and one half warrant. The units will sell at C$0.50 per unit and each whole warrant is exercisable at C$0.75 for two years.

The deal also includes an over-allotment option for up to C$1 million units.

Also, the company is planning an up to C$3 million private placement of 6 million units. The placement carries the same terms as the bought deal.

Debbie James, investor relations manager for Northern Freegold, said the company chose to do the financings given the "risky time" in the economic environment. The company has also had a history of dealings with Canaccord, she said.

"It's very hard to turn it down when somebody offers you C$4 million," she said of the bought deal.

And Northern Freegold elected to do the placement in an effort to appease other shareholders who might have been "irate" over the dilution of the stock.

"Plus we had people that we knew wanted to buy [more stock]," she added.

Proceeds from the transactions will be used "mainly for exploration," James noted. She explained that the company has a drill program at its Freegold Mountain project in the Yukon set to start on June 1. The funds will allow the company to do "more drilling than originally planned," she said.

Settlement is expected by June 17.

Northern Freegold's stock (TSX Venture: NFR) slipped a penny, or 2%, to C$0.49.

Northern Freegold is a Vancouver, B.C.-based precious metals exploration and development company.

Petro-Geo deal oversubscribed

Petroleum Geo-Services raised NOK 789.32 million via a private placement of stock, the company announced.

The Norwegian geophysical company sold approximately 17.99 million new common shares and 3.63 million treasury shares at NOK 36.50 per share. The new shares represent approximately 9.99% of the company's outstanding shares prior to the placement.

"I am very pleased to see the massive interest in the placement," stated Jon Erik Reinhardsen, president and chief executive officer, in a press release. "It is a genuine sign of strength that the book was closed in just one hour, more than five times oversubscribed.

"The purpose of the private placement was to strengthen our balance sheet," he continued. "Together with the previously announced plans for asset sales, which are targeting proceeds of $200 million, the private placement will better position PGS in a more challenging market."

Petroleum's shares (Oslo: PGS) closed at NOK 39.10.

Bannerman raises A$30 million

Bannerman Resources arranged an A$30 million private placement of ordinary shares, according to a press release.

The company will issue 30 million shares at A$1.00 per share to both Australian and Canadian investors. The deal was oversubscribed.

The price represents a 9% discount to the five-day volume-weighted average price as of Wednesday.

"The strength of support from institutional and sophisticated investors for the placement in Australia and Canada was very encouraging, highlighting not only the quality of the Etango uranium project in Namibia but also their confidence in the long-term fundamentals for the uranium mining industry," noted Len Jubber , CEO, in a statement.

Bannerman's equity (Australia: BMN) closed at A$1.14.

Bannerman is a Perth, Australia-based emerging uranium development company.

Hathor plans C$8 million placement

Hathor Exploration will sell flow-through common shares to raise C$8 million, the company said.

According to the terms of the deal, Hathor will issue approximately 3.33 million shares at C$2.40 per share.

Proceeds will be used to further explore the company's Midwest Northeast uranium property, Saskatchewan and other properties.

Settlement is expected by June 16.

Hathor's stock (TSX Venture: HAT) gained 2 cents, or 0.93%, to C$2.18.

Hathor Exploration is a Vancouver, B.C.-based resource exploration company.

GenVec to issue units

GenVec, a Gaithersburg, Md.-based pharmaceutical company, said it would take in $6 million via a registered direct offering of stock and warrants.

The company will sell approximately 9.62 million common shares, along with warrants good for an equal number of additional shares. The units will be sold at $0.624 and the warrants are exercisable at $0.858 for five years.

One institutional investor is purchasing the units.

Proceeds from the fundraising will go toward further development of the company's TNFerade product line, which is currently being tested as a treatment for pancreatic, head and neck cancers.

Settlement is expected by May 29.

GenVec's shares (Nasdaq: GNVC) fell 15 cents, or 18.99%, to $0.64.

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