Mining sector comes to market; BioExx plans C$3.02 million sale; Catch the Wind to issue equity

By Stephanie N. Rotondo

Portland, Ore., April 28 - Canadian mining companies came to the private placement market Tuesday looking for funds to further their work programs.

Barker Minerals Ltd. is planning to raise C$1 million by issuing common share units. Ruby Red Resources Inc. is also looking to raise that amount via a unit sale. And Golden Dawn Minerals Inc. hopes to raise C$1.25 million by selling both common share and flow-through units.

Also, Canacol Energy Ltd., yet another mining company, brought the biggest deal of the sector. The company is planning a C$5 million placement of units.

Among other companies coming to market, Bio-Extraction Inc. is aiming for C$3.02 million in its private stock sale. Catch the Wind Ltd. also plans to issue new equity in its effort to raise a minimum of C$15 million.

Mining sector enters PIPE market

Barker Minerals is planning to raise C$1 million via a common shares unit sale.

The units will include a common share and a warrant. The price of the units will be determined by the market, while the warrant strike price will equal C$0.05 more than the unit price in the first year and C$0.10 more in the second.

Proceeds will be used to fund work programs and the company's Pro-Long Campaign.

Vancouver, B.C.-based Barker saw its stock (TSX Venture: BML) gain C$0.005, or 10%, to C$0.055. Market capitalization is C$5.63 million.

Meanwhile, Ruby Red Resources will issue units in a non-brokered C$1 million placement.

The company plans to sell 10 million units consisting of one common share and one non-transferable warrant. The units will sell at C$0.10 per unit and the warrants are exercisable at C$0.15 for two years.

Proceeds will be used for exploration, development and acquisition programs.

Calgary-based Ruby Red saw its stock (TSX Venture: RRX) close unchanged at C$0.10. Market capitalization is C$2.86 million.

Among other mineral exploration companies, Golden Dawn Minerals will raise C$1.25 million by issuing common share and flow-through units.

The Vancouver, B.C.-based company will issue 6 million units containing one common share and one warrant. The units will sell at C$0.10 per unit.

Also, up to 4.3 million flow-through units will be offered. Each unit will consist of a flow-through common share and one half-share warrant. The units will sell at C$0.15 per unit.

The two-year warrants included in both tranches are exercisable at C$0.20 for the first year and at C$0.25 for the second.

Proceeds will be used to further develop the company's various mining properties.

Golden Dawn's stock (TSX Venture: GOM) fell C$0.015, or 15%, to C$0.085. Market capitalization is C$2.14 million.

Furthermore, Canacol Energy announced a C$5 million private placement of units.

The Calgary-based onshore oil exploration company will sell units containing one common share and one half-share warrant at C$0.125 per unit. Each whole warrant is exercisable at C$0.20 for two years.

"We are very pleased to be raising additional capital to fund our previously announced 2009 work program, which includes our operated development drilling program in Colombia," said Charle Gamba, president and chief executive officer of Canacol, in a statement.

"This includes the drilling of three development wells and the workover of three existing producers on our operated Rancho Hermoso and Entrerrios fields, and the drilling of additional delineation wells on our heavy oil discovery at Capella. As previously announced, part of the capital for these programs will be advanced by Gemini Oil and Gas. A portion of the proceeds from this offering will also be directed towards preparing for our 2010 exploration drilling and seismic programs in Guyana and Brazil."

Canacol's shares (TSX Venture: CNE) slipped 1 cent, or 6.67%, to C$0.14. Market capitalization is C$18.2 million.

BioExx plans stock sale

Bio-Extraction will use a syndicate of agents to raise C$3.02 million through a private placement of shares, according to a press release.

The Toronto-based company plans to issue 5.8 million shares at C$0.52 per share. Additionally, the group of agents led by Canaccord Capital Corp. has a greenshoe, which allows them to increase the number of shares sold to 9.8 million, or C$5.1 million.

"We are pleased to accept additional funding into our treasury on what we believe are fair terms relative to the current and historical trading range of our shares, and having regard to the hold period on the private placement shares," stated Chris Schnarr, BioExx's chief financial officer, in the release.

"This capital represents a prudent strengthening of our balance sheet for our shareholders, and it does so at a time of difficult and highly uncertain capital market conditions. It also augments our ability to continue on our path of consistent and successful business plan execution, and further drives our tireless efforts towards exploitation of high-end protein markets."

BioExx's stock (TSX Venture: BXI) fell a penny, or 1.69%, to C$0.58. Market capitalization is C$60.2 million.

Catch the Wind to issue equity

Laser wind sensor manufacturer Catch the Wind is planning to raise at least C$15 million via a private placement of stock.

The company will sell the common shares at C$1.30 per share, according to a press release.

Proceeds will be used to developer the company's Vindicator Laser Wind Sensor and other laser based wind sensors. Settlement is expected May 20.

Calls to the company seeking comment were not returned Tuesday.

The company's equity (TSX Venture: CTW.S) ended unchanged at C$0.96. Market capitalization is C$33.1 million.

Catch The Wind is a Manassas, Va.-based capital pool company.

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