Reservoir Capital plans C$5 million deal; Helix Wind wraps offering; OmniReliant sells warrant

By Stephanie N. Rotondo

Portland, Ore., July 21 - In Tuesday's private placement market, deals around $5 million seemed to be rather popular.

Reservoir Capital Corp. brought one C$5 million deal to market. The company said it will sell units to raise the funds, which will be used for establishing renewable energy in Southeast Europe.

Helix Wind Corp. also announced a $5 million deal. The renewable energy company said it raised that amount by issuing convertibles. The company added that a larger deal would be announced before the end of the year.

Marketing firm OmniReliant Holdings Inc. was another $5 million issuer. The company sold a warrant good for common shares to a single investor.

Among other deals of the day, OceanaGold Corp. said it launched a A$24.2 million placement of Chess Depositary Interests. Proceeds will go toward further exploration of the company's mining assets.

Reservoir Capital plans deal

Reservoir Capital hopes to take in C$5 million by way of a non-brokered private placement of units, the company announced.

The company plans to issue approximately 8.33 million units containing one common share and one warrant. Each unit will be sold at C$0.60 per unit and each two-year warrant is exercisable at C$0.80 for the first year and at C$0.90 for the second.

There is also a provision that allows for the warrants to expire sooner should Reservoir's equity trade at C$1.20 or higher for 20 consecutive trading days. In that instance, the warrants will expire within 21 days of notification.

Proceeds will be used to help the company establish renewable energy in Serbia.

"The company is investing primarily in renewable energy, with currently two hydroelectric projects totaling 48MW of capacity undergoing pre-feasibility studies in Serbia," the release stated.

Calls made to the company seeking comment went unreturned Tuesday.

Reservoir's stock (TSX Venture: REO) fell 2 cents, or 2.9%, to C$0.67. Market capitalization is C$15 million.

Reservoir Capital is a Vancouver, B.C.-based "Southeast Europe focused project generator, with a mandate to acquire undeveloped natural resource opportunities," according to the release.

Helix wraps convert sale

San Diego-based renewable energy company Helix Wind raised $5.1 million via a private placement of 9% convertible notes.

In a statement, the company said that approximately $2.2 million of the notes were exchange notes issued in connection with Helix's reverse merger transaction in February. The company also issued 11.9 million warrants.

"The funds from the offering will be used to meet general working capital needs through the end of the year, as Helix Wind intends to proceed with a larger institutional round of financing by year-end to finance its growth plan through acquisitions," the company said in a news release.

"Raising this capital is a critical step in developing and growing our business," commented Ian Gardner, Helix Wind's chief executive officer, in the release. "With this funding in place, the entire Helix Wind team is looking forward to executing on the operational aspects of our business plan and bringing the benefits of small-wind power generation to our customers."

Calls made to the company seeking comment went unreturned Tuesday.

Helix's shares (OTCBB: HLXW) gained 4 cents, or 1.18%, to $3.00. Market capitalization is $113 million.

OmniReliant sells warrant

OmniReliant Holdings sold a 10-year warrant equal to approximately 95.51 million common shares to Vicis Capital Master Fund.

The deal closed July 20, according to a regulatory filing. The warrant is exercisable at $0.25.

Also, Vicis surrendered all of the warrants it held prior to the transaction. Those warrants will be canceled.

OmniReliant's equity (OTCBB: ORHI) ended unchanged at $1.01. Market capitalization is $14.7 million.

OmniReliant Holdings is a Tampa, Fla.-based product licensing, management and marketing firm.

OceanaGold launches CDI placement

In news from Down Under, OceanaGold announced it would conduct a A$24.2 million private placement of Chess Depositary Interests.

Approximately 24.2 million of the CDIs were sold at A$1.00 each.

The interests issued represents 15% of OceanaGold's issued capital prior to the transaction, the company noted.

Proceeds from the deal will go toward a brownfields exploration and drilling program at areas near the company's New Zealand properties, as well as for general corporate purposes.

"We believe that the placement will allow us to add significant value to OceanaGold as we build upon the operational and exploration successes we have already achieved at our three mines in New Zealand," said Marcus Engelbrecht, interim CEO and chief financial officer, in a statement. "In particular, the opportunity to significantly extend the mine life of our New Zealand operations provides considerable upside for shareholders in the medium term given the scheduled expiry of the company's hedge book at the end of 2010.

"Furthermore, we are confident that completion of a re-scoped feasibility study at Didipio will add material value by providing the company with significant strategic options for the project," he concluded.

Additionally, OceanaGold released an unaudited summary of earnings for the quarter ending in June.

During the quarter, OceanGold sold 75,318 ounces of gold, bringing the total for the first half of the year to 156,411 ounces sold, a 24% increase year over year.

Operating cash costs came to $421 per ounce for the quarter and to $347 per ounce for the six months ending June 30. Cash balance as of June 30 was $21.4 million, with net debt at $152.3 million.

Year-to-date cash flows from operations totaled $43 million as of June 30 and year-to-date EBITDA was estimated to be in the $45 million to $50 million range.

The company will post its quarterly earnings on July 30.

OceanaGold's equity (Australie: OGC) closed at A$1.20.

OceanaGold is a Melbourne, Australia-based gold exploration company.

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