Paltinum plans equity placement; Willmott settles stock sale; China Nutrifruit closes tranche

By Stephanie N. Rotondo

Portland, Ore., Oct. 1 - Platinum Australia Ltd. brought one of the day's biggest deals to the private placement market Thursday, announcing its intention to raise more than A$30 million.

The company said the deal was oversubscribed and replaced a deal announced in July that was never completed.

Also, Willmott Forests Ltd. said it settled a A$6.3 million private placement of equity. The company also hopes to raise another A$14 million via a rights offering.

Meanwhile, China Nutrifruit Group Ltd. said it took in nearly $12 million in the first tranche of its $18 million private placement of convertible preferred shares. The company will use the funds to advance its new glazed-fruit product line.

In the mining sector, Rochester Resources Ltd. announced a C$11.25 million private placement of units. Etna Resources Inc., another mining company, also brought a deal, for a minimum of C$3 million.

Platinum plans equity placement

Platinum Australia settled a A$30.38 million private placement of ordinary shares, according to a press release.

The company sold 37.5 million of the shares at A$0.81 per share. The price per share is an 8.5% discount to the stock price as of Sept. 30 and an 8.2% discount to the five-day volume-weighted average price.

The deal was "heavily oversubscribed," the company said in the release.

The raised funds will replace the proceeds that the company had originally intended to raise via an investment from a Chinese investor in July. However, that deal was not completed.

"We are extremely pleased with the strong response to today's offering," said John Lewins, managing director, in the release. "The placement generated strong support from investors globally which is testament to the quality of Platinum Australia's asset portfolio and the company's positioning as an emerging quality PGM company."

"The placement provides Platinum Australia with the funds to advance our existing projects and take advantage of acquisition opportunities which continue to emerge," Lewins added.

"Indeed, the company is currently in negotiations to acquire an interest in a further platinum project located in South Africa, although any agreement to acquire an interest will be subject to due diligence and final negotiation of terms."

"The project does not have a current resource and the initial outlay to acquire the interest would be minimal in comparison to Platinum Australia's existing asset portfolio, but the asset is strategically located relative to an existing PLA project and would enhance that project."

Settlement is expected by Oct. 7.

Platinum's equity (Australia: PLA) ended at A$0.885.

Platinum Australia is a West Perth, Australia-based platinum group metals exploration company.

Willmott settles stock sale

Among other Australian issuers, Willmott Forests said it completed a A$6.3 million private placement of stock.

The company sold 13.9 million ordinary shares at A$0.45 each.

Also, the company intends to conduct a 1-for-3 renounceable rights offering at A$0.40 per share. Proceeds from that part of the financing is expected to reach A$14.2 million.

"The rights issue has been priced and structured for participation and funds raised will be used for identified growth opportunities," stated Marcus Derham, CEO, in a statement. "Clearly among these opportunities is our timber mill development that will be appropriately positioned for the construction phase as statutory planning approvals and technical planning for the project will soon be finalised."

Willmott's shares (Australia: WFL) closed at A$0.515 Thursday.

Willmott Forests is a South Melbourne, Australia-based company.

China Nutrifruit wraps first tranche

China Nutrifruit Group, a Heilongjiang, China-based distributer of premium specialty fruits, pocketed $11.86 million in the first tranche of an $18 million private placement of convertible preferred stock.

The company issued the 7% series A preferred shares as units. Each unit held one of the preferreds and a warrant equal to 2.5 common shares.

The units sold at $33.00 each and each convertible share can be exchanged for common shares at $3.30 per share.

"We are pleased to announce the initial closing of our preferred stock offering," Jinglin Shi, CEO, in a press release. "We intend to invest the proceeds in a new glazed fruit line and concentrate pulp production line. The concentrate pulp line will allow us to bring production of apple and pear juice concentrate in-house and enhance margin of these popular products.

"With the new glazed fruit production line, we will begin producing our newly developed glazed blueberry product to the market," Shi continued. "We believe these new production lines will allow us to accelerate growth in revenue and enhance our profitability in the year ahead."

Settlement of the remaining funds is expected by Nov. 14.

China Nutrifruit's equity (OTCBB: CNGL) gained just over a penny, or 2.97%, to $3.499. Market capitalization is $126 million.

Rochester to sell units

Rochester Resources intends to raise C$11.5 million through a private placement of units, the company said in a press release.

The units will contain one common share and one half-share warrant. The price per unit and strike price of the warrants has yet to be set.

Proceeds will be used for exploration and development projects at Rochester's Mexico properties, as well as for general corporate purposes.

Calls made to the company seeking comment went unreturned Thursday.

Rochester's stock (TSX Venture: RCT) closed steady at C$0.17. Market capitalization is C$9.61 million.

Rochester Resources is a Vancouver, B.C.-based gold and silver exploration company.

Etna hopes for C$3 million

Etna Resources is aiming to take in a minimum of C$3 million from a private placement of common share units.

The company said it would issue 10 million units at C$0.30 per unit. The units will consist of one common share and one half-share warrant. Each whole warrant is exercisable at C$0.50 for 18 months.

Proceeds from the transaction will help the company explore and develop nine Lithium salar projects in Chile. Settlement is expected by Oct. 30.

Calls made to the company seeking comment went unreturned Thursday.

Etna's shares (TSX Venture: ETN) improved by C$0.005, or 1.33%, to C$0.38. Market capitalization is C$2.76 million.

Etna Resources is a Vancouver, B.C.-based precious and base metals exploration company.

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