African Aura seals £11.31 million; China Armco wants growth funding; Nightingale deal settles

By Stephanie N. Rotondo

Portland, Ore., April 21 - Foreign issuers - mainly of the mining and exploration variety - dominated Wednesday's PIPE market.

African Aura Mining Inc. announced it had raised £11.31 million, or C$17.5 million, from a private placement of equity. The company intends to use the proceeds to advance some of its mineral exploration projects.

Elsewhere, China Armco Metals Inc. brought a $10 million placement of stock to market. The company wants the funding to grow its business.

Nightingale Informatix Corp. pocketed over C$3 million from a private placement of both stock and subscription receipts. The company also said it had secured a new credit facility, which will take the place of an existing facility. According to a company spokesperson, the transactions will allow the company to deleverage its balance sheet.

Meanwhile, Caspian Energy Inc. announced plans to raise C$3 million. The company will issue stock in a private placement to raise the funds.

Converted Organics Inc. said it had secured a single investor in a registered direct offering of stock and warrants. In an interview with Prospect News, a company spokesperson said the investor was increasing its position.

And, Taku Gold Corp. said it wants to raise C$2 million from a private placement of units. The company plans to use the funds to increase its presence in the White Gold district of the Yukon Territory.

African Aura seals £11.31 million

African Aura, a Vancouver, B.C.-based iron ore and gold exploration company, raised £11.31 million, or C$17.5 million, from a private placement of common stock.

The company sold approximately 17.39 million of the shares at 65p each.

Directors of the company subscribed for over £450,000 of the shares.

Proceeds will be used to complete a bankable feasibility study on the New Liberty gold deposit, to deliver a maiden resource statement for the Nkout iron ore project, to deliver a NI 43-101 resource statement on the Weaiu deposit and for working capital.

"I am delighted by the response to this oversubscribed placing and I believe that it speaks volumes of the company's positioning and value generation potential for all existing and new shareholders," remarked Luis da Silva, president and chief executive officer, in a press release. "This is the first time since 2006 the company has sought funding in the public markets having previously been funded through convertible debt in 2007, proceeds from our joint venture with Severstal in 2008 and the company's merger in 2009."

African Aura's equity (London: AAAM) closed at 77p. Its market capitalization is £36.5 million.

China Armco wants growth funding

China Armco Metals is seeking $10 million via a private placement of equity, according to a press release.

The company will issue approximately 1.54 million common shares at $6.50 per share. Investors will also receive warrants for an additional 1.54 million shares.

The warrants are exercisable at $7.50 for five years.

"We are pleased to have secured this additional capital to fuel our growth plans for the future," said Kexuan Yao, chairman and CEO, in the release. "This financial flexibility will enable us to accelerate our growth plans in our scrap metal recycling operations as well as enable the opportunistic expansion of our distribution business. We believe that securing this financing will significantly enhance our ability to rapidly grow our businesses for the foreseeable future."

China Armco's stock (NYSE Amex: CNAM) fell 74 cents, or 10.65%, to $6.21. Its market capitalization is $74.2 million.

China Armco is a San Mateo, Calif.-based company engaged in the sale and distribution of metal ores and non-ferrous metal.

Nightingale wraps stock, subscription sale

Nightingale Informatix, a Markham, Ont.-based health-care software developer, said it took in C$3.32 million from a non-brokered private placement of common stock and subscription receipts.

The deal originally priced April 6.

Nightingale sold approximately 5.68 million common shares at C$0.22 each for total proceeds of C$1.25 million. The remaining C$2.07 million came from the sale of 2,074 subscription receipts, which will entitle the holders to receive 12% three-year convertible unsecured subordinated debentures.

Additionally, the company said it had secured a new senior loan facility made up of a US$1 million revolving line of credit and a C$2 million term loan. The facility bears interest at Prime plus 3%, "which compares favorably to the company's existing subordinated debt facility," according to a press release.

"These transactions will lower Nightingale's financing risk, reduce leverage and interest costs, offer more accommodating terms relative to the company's existing subordinated debt facility and will extinguish the company's existing subordinated debt facility while providing additional working capital," Nightingale said in the release.

"Ultimately, there was an opportunity to get some better rates," Kristin Dixon, investor relations for Nightingale, told Prospect News. The company had previously acquired some debt as a result of an acquisition.

As such, the transactions "gives financial flexibility," in that they will "lighten the load on the balance sheet and improve cash flow," she said.

Nightingale's shares (TSX Venture: NGH) were unchanged at C$0.28. Its market capitalization is C$20.6 million.

Caspian aims for C$3 million

Caspian Energy is planning a C$3 million private placement of stock, the company announced.

Caspian will issue 15 million common shares in the non-brokered placement at C$0.20 per share.

Some company insiders are expected to participate in the deal.

Proceeds will be used for general corporate and working capital purposes. Settlement is expected by May 11.

Caspian's stock (Toronto: CEK) held in at C$0.27. Its market capitalization is C$39.1 million.

Caspian Energy is a Toronto-based oil and natural gas exploration company.

Converted Organics announces placement

Converted Organics brought a $2.54 million registered direct offering of stock and warrants to market.

A "long-term investor" is purchasing the securities, according to Jim Blackman, who handles investor relations for the company. "They are just adding to their position."

According to the terms of the investment agreement, Converted Organics will issue 2.4 million common shares and warrants for another 1.16 million shares.

The warrants are exercisable at $1.06 for five years.

Converted Organics' shares (Nasdaq: COIN) dipped 12 cents, or 10.26%, to $1.05. Its market capitalization is $39.92 million.

Converted Organics is a Boston-based producer of organic soil amendment and fertilizer products through food waste recycling.

Taku to sell units

Taku Gold will conduct a private placement of units in an effort to raise C$2 million, the company said in a press release.

The Vancouver, B.C.-based company will sell 8 million units at C$0.25 each. The units will contain one common share and one half-share warrant. The whole two-year warrants are exercisable at C$0.35 in the first year and at C$0.50 in the second.

Proceeds form the financing will be used to advance Taku's acquisition and exploration of the White Gold district in the Yukon.

"Taku aims to be a major player in the White Gold area and hard dollars are required to put this ambitious plan into effect," stated Zak Dingsdale, president and CEO, in the release.

Taku's equity (TSX Venture: TAK) was steady at C$0.23. Its market capitalization is C$2.71 million.

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