Oilsands Quest plans $23.25 million private placement of shares; San Gold to raise C$20.03 million

By Devika Patel

Knoxville, Tenn., Sept. 22 - Oilsands Quest Inc. arranged a $23.25 million private placement of stock with lead investor UTA Asset Management Corp. for the issuer's exploration program.

Separately, San Gold Corp. negotiated a C$20.03 million private placement of shares, which will be conducted by Dundee Securities Corp. and a syndicate of underwriters, including Cormark Securities Inc. and National Bank Financial Inc.

The offerings were among a handful of PIPEs to advance in the market Monday as issuers sought to raise capital.

Oilsands to get $23.25 million

Oilsands Quest said it will raise $23.25 million in a private placement of stock.

Proceeds will be used for exploration.

"We are excited about our exploration program at the moment," the company's vice president of investor relations and corporate planning, Paul K. O'Donoghue, told Prospect News on Monday. "We are currently working in the La Loche region of Saskatchewan where we recently arranged an exploration agreement. We have also committed to buy land there, and plan to construct our new administrative facilities in that area."

The Calgary, Alta.-based oil and gas exploration company hopes to sell 5,142,857 flow-through common shares at $3.50 per share to funds managed by or affiliated with UTA Asset Management Corp. for $18 million.

Oilsands also will sell up to an additional 1.5 million flow-through shares to affiliates and employees of the company for an additional $5.25 million.

Settlement of the placement is expected on Sept. 26.

Company shares (Amex: BQI) grew by 0.94%, or 3 cents, to close at $3.21 Monday.

San Gold aims for C$20.03 million

San Gold announced plans to conduct a C$20.03 million private placement of stock through Dundee Securities Corp. and a syndicate of underwriters, including Cormark Securities Inc. and National Bank Financial Inc.

The company plans to sell 13.35 million flow-through common shares at C$1.50 apiece on a bought-deal basis.

Proceeds will ensure the accelerated exploration and development of the new high-grade Hinge zones as well as initial development of the Cartwright/Gabrielle zones going into 2009.

"The discovery of the high-grade Hinge zones from surface is the most significant development to date in San Gold's history," chief executive officer Dale Ginn said in a press release. "Not only are we beginning to extend the Hinge zones to mine depths, but we are also filling in the area between the main mine and the Deep East zones, effectively doubling the strike length of the Rice Lake Mine.

"These deep intersections indicate that there is tremendous potential in the unexplored volcanic rocks and is especially obvious between the surface drilling and the current underground drilling, not to mention the numerous other surface Hinge targets we have identified," Ginn said.

Settlement is expected on Oct. 15.

San Gold is a gold exploration company based in Bissett, Manitoba. Its share price (TSX Venture: SGR) rose 6.3% Monday, or 8 cents, to close at C$1.35.

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