Straits Resources, Albidon receive private investor support; Raser takes credit line; Dynasty to sell stock

By Kenneth Lim

Boston, Jan. 30 - Straits Resources Ltd. announced a A$79.8 million placement of convertible notes to the private equity arm of Standard Chartered Bank.

Albidon Ltd. could raise up to $26 million from a private investment fund to help fund a nickel project.

Raser Technologies, Inc. negotiated a $15 million line of credit with four lenders to raise working capital.

Dynasty Metals & Mining Inc. plans to raise C$10 million through a stock placement to raise capital for existing properties and potential acquisitions.

Straits in Standard Chartered deal

Straits Resources plans to sell A$79.8 million of 4% convertible unsecured notes due Jan. 29, 2013 to Standard Chartered Private Equity Ltd.

The notes will be sold at A$1.45 apiece, which is also the initial conversion price. Straits Resources common stock (ASX: SRL) jumped 11.58% or A$0.11 to close at A$1.06 on Friday. The company has a market capitalization of A$246.9 million.

The notes will be sold in an initial A$48.6 million tranche and a subsequent A$31.2 million tranche, which is conditional upon shareholder and regulatory approval.

Proceeds will be used to strengthen Straits Resources' balance sheet.

Based in West Perth, Western Australia, Straits Resources is a diversified resources company.

Standard Chartered Private Equity will also have the right to nominate a member to Straits Resources' board as part of the deal.

"This is a unique and powerful relationship with SCPEL, which is one of the most well respected private equity groups internationally and has a complementary culture to Straits," Straits Resources chief executive Milan Jerkovic said in a statement. "SCPEL is active across Asia and Africa, and has the ability to assist in our growth and strategy in emerging markets.

"The issue of the notes introduces a stakeholder that understands and supports the company's growth-oriented outlook and strategy to continue to develop and realize value from resource assets," he added. "SRL and SCPEL are fundamentally aligned in respect of pursuing a strategy to maximize total shareholder returns over the medium to longer term."

Albidon in $26 million deal

Albidon plans to raise up to $26 million from a placement of five-year zero-coupon convertible notes to Pacific Road Resources Funds.

The notes will be issued in three tranches.

The initial tranche comprises 110 million notes, or $6 million, by Feb. 28. The first-tranche notes will have an initial conversion price of A$0.08.

The second tranche comprises about 92 million notes, or $10 million, by June 30. These notes will have an initial conversion price of A$0.16 per share.

The final tranche will consist of $10 million of notes by Sept. 30 and have an initial conversion price pegged at a 10% discount to market.

Albidon common stock (ASX: ALB) settled at A$0.08 on Friday, lower by 5.88% or A$0.005. The company's market capitalization is A$16.8 million.

All the tranches are conditional. Albidon must also raise $5 million in equity concurrently with a first tranche. The company said in a statement that it is in discussions with major shareholders and interested parties.

Proceeds will be used for working capital and ramp-up costs in the company's Munali nickel project.

Albidon is a mineral exploration and development company based in West Perth, Australia.

Following the completion of the first tranche, Pacific Road may nominate two directors to the Albidon board.

"The board is pleased to have secured this funding in a difficult market," Albidon said in a press release. "The board remains confident that the Munali Project's ramp-up issues can be addressed and this confidence has been confirmed by PRRF's intention to invest in Albidon despite current depressed nickel prices. Pacific Road Capital Management's executives have strong mining expertise which will assist in the performance of the Munali Project for the benefit of all shareholders."

Raser obtains $15 million facility

Raser Technologies arranged a $15 million 10% line of credit due Nov. 15, 2009 with four lenders.

Each lender will also receive warrants for each advance. The number of warrants will be equal to 50% of the total amount invested by the lender divided by the price of the common stock at the time of the advance.

The warrants will have an exercise price of $6. Raser common stock (NYSE: RZ) gained 3.31% or $0.12 to close at $3.74 on Friday. The company's market capitalization is $239.9 million.

Proceeds will be used for working capital general corporate purposes.

Provo, Utah-based Raser is a technology licensing and development company focused on geothermal power generation.

The lenders include an entity controlled by Raser chairman Kraig Higginson.

"This credit agreement helps to prudently fund our growth and development during these challenging economic times," Raser chief financial officer Martin Petersen said in a press release.

"We will continue to explore other non-equity based financial structures to provide the capital to complete our 2009 projects and initiate the development of additional future projects. Our ability to continue to access capital in this economy underscores the importance of renewable energy projects and our ability to complete geothermal projects quickly."

Dynasty to sell stock

Dynasty Metals & Mining plans to sell C$10 million of its common stock through a private placement.

The company will sell 2.5 million common shares at C$4 apiece on a bought-deal basis. Dynasty common stock (TSX: DMM) closed at C$4.15 on Friday, lower by 2.58% or C$0.11.

The company has a market capitalization of C$136.5 million.

Proceeds will be used to develop the company's Ecuador properties, to acquire property and for general corporate purposes.

Dynasty is a mining company based in Vancouver, B.C.

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