Nevsun to raise C$117 million; SORL brings direct placement; Raser sells registered preferreds

By Stephanie N. Rotondo

Portland, Ore., Feb. 4 - Thursday's PIPE market saw many larger-cap companies entering the marketplace and double-digit deals continued to be popular.

Nevsun Resources Ltd. even brought a triple-digit deal, announcing a C$117 million private placement of equity. According to a company spokesperson, the deal was designed to eliminate financing risk associated with the company's Bisha project.

Meanwhile, SORL Auto Parts Inc. said it will raise $10 million via a registered direct offering of common stock.

Among completed registered deals, Raser Technologies Inc.'s $5 million financing - which was announced on Wednesday - closed, according to a press release. The release also gave new details of the transaction.

And, Viper Resources Inc. said it had inked a deal with a hedge fund for a $5 million equity line. Eastmain Resources Inc. said it was also looking to raise C$5 million for exploration work.

Nevsun plans C$117 million deal

Nevsun Resources is looking to raise C$117 million from a private placement of equity, according to a press release.

The company will issue 52 million common shares in the non-brokered placement at C$2.25 per share. Arlen Hansen of Kin Communications - the investor relations manager for Nevsun - noted that the financing was "done at a premium to the market."

Hansen added that the funding was done as a way to eliminate financing risk associated with the company's Bisha project. In order to get the project running, Nevsun arranged a $250 million debt facility, receiving commitments from a variety of investors, including European and African institutions.

However, Hansen said, Nevsun was unable to finalize commitments from some of the investors within the timeframe allotted. Therefore, Nevsun approached some of it major shareholders regarding this placement.

"They didn't have any problems cutting the check to get it done," he said. "And it takes the financing risk out of the equation completely." Hansen also said that investors had not expressed any concerns about dilution.

"The company is confident the funds from this private placement, together with its existing cash and the ongoing one-third contribution by the State of Eritrea to Bisha will be sufficient to see the Bisha project through to cash positive operations," the press release said. "The funding arrangements are in excess of estimated costs to complete so as to provide a reasonable cushion in the event of unforeseen events."

As of January, "the project is very well advanced (approaching 50% complete) and costs are re-estimated to be approximately C$260 million, close to the original budget of approximately C$250 million."

Settlement is expected by Feb. 19.

Nevsun's stock (Toronto: NSU) gained 11 cents, or 5.19%, to C$2.23. Market capitalization is C$315 million.

Nevsun Resources is a Vancouver, B.C.-based gold, copper and zinc exploration company.

SORL brings direct placement

SORL Auto Parts, a Zhejiang, China-based automotive parts supplier, announced a $10 million registered direct offering of common shares.

The company will sell 1 million shares at $10.00 per share.

Proceeds will be used for general corporate and working capital purposes. Settlement is expected by Feb. 8.

The company did not return emails seeking further comment.

SORL's equity (Nasdaq: SORL) dropped 39 cents, or 3.78%, to $9.92. Market capitalization is $184 million.

Raser wraps preferred sale

Raser Technologies said it had settled a $5 million registered direct offering of convertible preferred stock.

The deal originally priced Feb. 3 and was completed a few hours later, according to a press release. The release also gave some new details regarding the terms of the transaction with Fletcher International Ltd.

Raser sold 5,000 series A-1 cumulative convertible preferred stock at $1,000 each. The deal also included warrants - exercisable at $1,000 - good for another 5,000 of the preferreds.

The preferred shares pay annual dividends at a rate of Libor plus 800 basis points, with a maximum of 14%. Each share is convertible into approximately 15.52 million common shares at $5.00 per share and can be redeemed at a minimum price of $1.22 per share. The minimum price represents a 37% premium to Raser's stock price as of Feb. 3.

"Since becoming one of our largest investors in 2008, Fletcher has consistently supported our efforts, bringing substantial additional capital and valuable strategic support," said Nick Goodman, chief executive officer, in a statement. "We're very happy with this expansion of our relationship."

Proceeds will be used to further advance Raser's geothermal development program and for general corporate purposes.

Raser's shares (NYSE: RZ) improved by $0.0711, or 7.99%, to $0.9611. Market capitalization is $77.7 million.

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

Viper gets $5 million credit line

Houston-based Viper Resources secured a $5 million equity line from Dutchess Opportunity Fund, II, LP, the company said in a press release.

Dutchess has agreed to purchase common shares over the course of 36 months. The shares will be sold at a 4% discount to a calculated volume-weighted average market price.

"We are excited to enter into this financing agreement offering Viper a flexible infusion of cash with a well-established firm such as Dutchess," stated Max Pozzoni, president, in the release. "We believe the financing will help meet the ongoing capital requirements of Viper and accelerate the company's growth strategies in Utah including further testing and potential drilling. Additionally, we plan to use this capital to secure the 82,000 acres in Montana within Viper's Starbuck Prospects."

"We are excited to work with Viper and provide facility to the company," added Jessica Geran, director of corporate finance for Dutchess. "The line will allow management the flexibility of raising capital when and as needed in order to continue the growth efforts already achieved."

Viper's equity (OTCBB: VPRS) increased a penny, or 3.90%, to $0.16. Market capitalization is $12.56 million.

Viper Resources is an independent oil and gas exploration and production company.

Eastmain wants exploration dollars

Eastmain Resources is seeking C$5 million from a private placement of stock to pay down debt and to fund exploration work.

The Toronto-based company will issue 2 million flow-through shares at C$2.50 each.

"Eastmain proposes to use the proceeds of the offering for further exploration of its Eau Claire and Eastmain gold deposits, its Éléonore South joint venture with Goldcorp Inc. and its Reservoir project, all located in James Bay, Quebec," the company said in a news release.

"Eastmain estimates that the completion of the offering will increase its treasury by 30% in exchange for a 2% dilution to its outstanding shares, and will increase Eastmain's 2010 exploration budget by approximately 50%."

Calls seeking comment were not returned Thursday.

Eastmain's stock (Toronto: ER) dipped 5 cents, or 3.23%, to C$1.50. Market capitalization is C$135 million.

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