Focus to raise C$1 million; Scimitar issues A$2.3 million convertibles; Red Fork deal in demand

By Stephanie N. Rotondo

Portland, Ore., May 21 - Exploration companies dominated the private placement market Thursday.

Focus Ventures Ltd. said it arranged a C$1 million unit placement in connection with its plan to acquire a new gold mining property in Peru. The deal also includes warrants.

Meanwhile, Scimitar Resources Ltd. will sell convertible notes to raise A$2.3 million. The deal comes as the company looks to merge with Jackson Minerals Ltd.

Also, Red Fork Energy Ltd. announced an oversubscribed stock sale. With the A$5 million raised from the sale, the company plans to further exploration at its Oklahoma properties.

And, Southern Energy Co. Inc. will use the $4 million it is aiming to raise to further production at its Chilean assets.

Outside the mining sector, Advanced Computer Software plc brought one of the day's bigger deals. The company said it hopes to take in £43.58 million by issuing new equity.

Focus to raise C$1 million

Focus Ventures arranged a C$1 million non-brokered private placement of units, the company said.

The units will contain one common share and one warrant. The company plans to sell 4 million units at C$0.25, with each warrant exercisable at C$0.30 for two years.

Focus plans to use proceeds to acquire a 100% interest in the Nueva California gold property located in Peru from Radius Gold Inc.

"Focus's geologists believe that the mine, which has never been drilled or systematically explored, has potential to host additional high-grade gold-silver mineralization both laterally along the extensions of the known mineralization and down-dip beneath the present workings," the company said in a press release.

Focus' shares (TSX Venture: FCV.H) gained 6 cents, or 20.00%, to C$0.36.

Focus Ventures is based in Vancouver, B.C.

Scimitar issues converts

West Perth, Australia-based Scimitar Resources will sell A$2.3 million of 12% convertible notes due March 24, 2010.

The uranium exploration company will sell the notes to Dempsey Resources Pty Ltd. The notes are convertible into common stock at A$0.15.

Proceeds will be used to explore properties owned by Jackson Minerals Ltd. The two companies have signed a conditional implementation merger agreement.

Scimitar's stock (Australia: SIM) ended at A$0.345.

Red Fork deal in demand

Red Fork Energy will issue 10 million ordinary shares in its effort to raise A$5 million via a private placement, according to a press release.

The shares will sell at A$0.50 per share.

"Strong demand was received from a range of overseas institutional investors and existing shareholders resulting in the placement being significantly oversubscribed and priced at a A$0.01 discount to the volume weighted average price of Red Fork shares over the last 30 days," the company stated.

Red Fork will use funds from the deal to further projects at its three oil and gas assets, while also allowing the company to remain debt free.

"We have experienced an increasing level of interest in the company's activities and the vast potential associated with our oil and gas assets in Oklahoma and we are delighted by the strong demand from institutions and existing shareholders as we are moving rapidly towards having three profitable 100% owned production centers in Oklahoma," commented David Prentice, managing director of Red Fork.

Red Fork's stock (Australia: RFE) finished at A$0.61.

Red Fork Energy is a Perth, Western Australia-based oil and natural gas exploration company.

Southern Energy to sell equity

Southern Energy negotiated a $4 million private placement of stock, the company announced.

Under the terms of the deal, the Chatsworth, Calif.-based company will issue 4 million common shares at $1.00 per share.

The fundraising is "in keeping with [Southern Energy's] plan to commence production on the Lota Bay Coal Concessions and commence a major geological work program on the Catalina Silver, Copper and Gold Property later this year," the company said in a statement.

The Lota Bay Coal Concessions are located in the harbor of Lota Bay, Chile. The Catalina property is located in Santiago, Chile.

Southern's shares (Pink Sheets: SOCI) slipped 14 cents, or 14.14%, to $.085.

Southern Energy is a resource exploration company.

Advanced Computer plans deal

Advanced Computer Software plans to raise £43.58 million by privately placing stock, according to a press release.

The London-based company will issue 145.25 million ordinary shares at 30p per share.

"Including £14.7 million of existing cash resources (as at Feb. 28), ACS now has more than £55 million to pursue its goal of becoming the leading consolidator in the primary care IT market," the company said in the release. "The board intends to grow the business through a combination of organic growth, product innovation, technical collaborations and the acquisition of businesses with strong product offerings and the potential for cross selling across the company. At the same time, ACS intends to maximize opportunities for cost savings and shared R&D."

"There are numerous opportunities to consolidate the fragmented and undeveloped IT infrastructure within the NHS and these additional funds give us the capability to implement our strategy more quickly," commented Vin Murria, chief executive officer, in the statement. "We have been delighted by the substantial demand from institutional shareholders and welcome their support for our strategy."

ACS' equity (London: ASW) closed at 37.63p. Market capitalization is £68.7 million.

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