Norton Gold raises A$19.96 million; Genesis secures $15 million; Polar Star plans C$10 million

By Devika Patel

Knoxville, Tenn., March 2 - Tuesday's largest PIPE deal settled in Australia when Norton Gold Fields Ltd. raised A$19.96 million by selling ordinary stock to Hong Kong's China Precious Metal Resources Holdings Co., Ltd., an investment holding company.

In the United States, Genesis Capital Corp. of Nevada announced a $15 million line of credit with Kodiak Capital Group, LLC and Procera Networks, Inc. announced its plans to sell $7.2 million of its common stock via agent Merriman Curhan Ford & Co. The company's shares (Amex: PKT) dropped 9.88% on Tuesday, or 4.84 cents, closing at $0.4416.

Canada's Polar Star Mining Corp. will also sell stock for up to C$10 million, plus a 15% greenshoe, and will use the proceeds to continue exploring its mining projects.

Norton plans expansion

South Brisbane, Australia gold producer Norton Gold Fields announced the completion of a A$19.96 million investment from China Precious Metal Resources Tuesday, which the company says will help strengthen its balance sheet.

"This raising further strengthens the company's balance sheet and gives us some flexibility going forward in both operational and corporate aspects of the business," chairman A. Anthony McLellan stated. "I welcome China Precious Metal Resources to our register and look forward to working with them and all our other shareholders to build an outstanding gold company."

The 79,830,585 ordinary shares were sold at A$0.25 apiece, a 34% premium to the 15-day volume-weighted average price, according to a company press release.

The investor announced on its web site that it was impressed by Norton's future expansion plans, and is "optimistic about the outlook of gold metal" due to an "increase in gold prices over the past years."

Norton's Paddington Gold Mine has produced more than 260,000 ounces of gold so far with a project life over 10 years, according to China Precious Metal Resources' announcement. The acquisition of this mine two years ago was a significant step in the company's plans to become a leading Australian gold producer. Norton directors expect to expand the company's gold output in 2010 and launch another mine project in Queensland, Australia, which is expected to add a further 30,000 to 35,000 ounces of gold production per year.

Company shares (Australia: NGF) were unchanged Tuesday, closing at A$0.20.

Genesis Capital: $15 million

Genesis Capital, a Miami shell corporation, publicized a $15 million three-year line of credit with Kodiak Capital on Tuesday.

Kodiak will buy common shares at a purchase price equal to 85% of the lowest closing "best bid" price, or the highest posted bid price, of the stock during the five consecutive trading days immediately following the drawdown notice.

The company's shares (OTCBB: GCNV) were unchanged Tuesday, closing at $2.00.

Procera prices $7.2 million

Los Gatos, Calif.'s Procera has negotiated a $7.2 million registered direct offering of stock, which is expected to settle on March 4.

The company is selling 18 million of its common shares at $0.40 apiece to raise funds for general working capital purposes.

Procera provides solutions for network traffic identification and management. Its popular PacketLogic products give network managers access to relevant network traffic intelligence that enables network optimization, creation of services and protection against malicious behavior.

Polar Star to get C$10 million

Metals explorer Polar Star said it is seeking to raise C$10 million in a stock placement, priced at C$1.10 per share. The deal, which will be conducted by a syndicate of agents led by Thomas Weisel Partners Canada Inc., has a 15% greenshoe.

In February, the company announced that drilling results from its Montezuma Project showed significant copper, gold and zinc mineralization. The company plans to use the stock sale's proceeds to conduct further exploration.

"These are very encouraging results, and we have begun analyzing them to help us plan and execute the next phase of exploration which we expect to include diamond drills starting in the second quarter of 2010," president and chief executive officer Doug Willock said in a Feb. 22 news release. "The sheer scale of the mineralized systems requires us to focus initially on the most prospective targets...to ensure exploration efficiencies and continued advancement."

The Toronto-based company's shares (TSX Venture: PSR) rose 5% Tuesday, or 6 cents, to close at C$1.26. The offering is expected to settle on March 18.

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