Apollo's $15 million bridge keeps project on time; Hecla, DMC plan deals; RegeneRx raises

By Kenneth Lim

Boston, Dec. 11 - Apollo Gold Corp. took on a $15 million bridge loan to keep its Black Fox project moving forward as it continues to negotiate a project facility.

Hecla Mining Co. plans to sell $21 million of stock through a registered direct offering to raise working capital and to repay debt.

RegeneRx Biopharmaceuticals, Inc. raised $3 million affiliates of its largest shareholder through a private stock placement to raise working capital.

DMC Mining Ltd. is placing A$2 million of convertibles with an investor to fund a drilling project.

Apollo takes bridge loan

Apollo Gold settled a $15 million bridge loan due June 30, 2009 with Macquarie Bank Ltd. and RMB Resources Inc.

At this time, Apollo can utilize $6 million of the facility to advance its Black Fox project with the balance of $9 million to be used pending satisfaction of certain conditions. In the event that the conditions are not satisfied by Feb. 28, Apollo will be required to repay the unused portion of the bridge facility.

The bridge facility will bear interest at Libor plus 1,000 basis points.

Each of the banks will receive about 21.31 million warrants, each warrant exercisable at C$0.221 for four years.

Apollo common stock (TSX: APG) closed at C$0.30 on Thursday, up by 87.5% or C$0.14. The company's market capitalization was C$65.96 million.

Denver-based Apollo is a gold exploration company.

Proceeds will be used fund the development of the Black Fox project until Apollo can finalize financing for the project. Macquarie and RMB are currently arranging a project facility for Apollo. The bridge loan may be refinanced before maturity if the facility for Black Fox is finalized.

"I am happy that we have finalized the bridge facility with the banks to ensure that the Black Fox project keeps moving forward," Apollo president and chief executive R. David Russell said in a statement.

"I am confident that we can conclude the balance of the banks' due diligence process and therefore close the project facility, enabling us to bring Black Fox into production in April 2009 on schedule. In summary, we have a mill, we have started developing the open pit, equipment is on order, the refurbishment of the mill is underway and we continue towards finalization of the project finance facility."

Hecla offers shares

Hecla Mining plans to raise $21 million through a registered direct offering of its common stock.

The company will sell about 10.24 million shares at $2.05 apiece. Investors will also receive series 1 warrants for about 7.68 million shares, exercisable at $2.45 for five years; and series 2 warrants for up to 7.68 million shares, exercisable at $2.35 until Feb. 28.

Hecla common stock (NYSE: HL) fell 29.61% or $0.69 to close at $1.64 on Thursday. The company has a market capitalization of $277.98 million.

The company will use up to $20 million of the proceeds for working capital and general purposes, and any remaining proceeds to repay outstanding indebtedness under a bridge facility and a term facility.

Hecla, headquartered in Coeur d'Alene, Idaho, mines, processes and explores for silver and gold.

DMC to raise A$2 million

DMC Mining plans to place A$2 million of 12% secured convertible notes due Dec. 10, 2009 with Dempsey Resources Pty. Ltd.

The convertibles have an initial conversion price of A$0.10 per share or the five-day volume weighted average closing price of DMC Mining's common stock, whichever is lower.

Dempsey will also receive 5 million options that can be exercised at A$0.15 until June 30, 2010.

DMC Mining common stock (ASX: DMM) fell 19.05% or A$0.02 to close at A$0.085 on Thursday. The company has a market capitalization of A$1.96 million.

The placements will ensure that DMC Mining can complete its 2009 drilling program at the Mayoko iron ore project.

Based in West Perth, Western Australia, DMC Mining is an iron ore exploration company.

"In spite of the Global Financial Crisis and the fact that many mining companies are scaling back operations, DMC will continue its 2009 drilling program as planned," said DMC Mining managing director David Sumich in a statement.

RegeneRx takes $3 million

RegeneRx sold $3 million of its common stock to two affiliates of its largest shareholder, Sigma-Tau Group.

The placement comprised about 2.07 million shares at $1.45 per share. Investors also receive warrants for 745,104 common shares. Each warrant is exercisable at $1.74 per share until Dec. 31, 2011.

RegeneRx common stock (AMEX: RGN) rose 7.14% or $0.10 to close at $1.50 on Thursday. RegeneRx has a market capitalization of $77.33 million.

Proceeds will be used for working capital and to fund ongoing clinical trials.

Based in Bethesda, Md., RegeneRx is a biopharmaceutical company focused on the treatment of acute and chronic wounds.

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