Premium Exploration wraps tranche; Alexandria plans placement; Zincore raises C$2.91 million

By Stephanie N. Rotondo

Portland, Ore., July 6 - Several mining companies came to the PIPE market on Tuesday looking for funding, including Premium Exploration Inc.

The company said it had completed the first tranche of a C$10 million financing, raising C$8 million. The remaining funds are expected to be obtained this week.

Alexandria Minerals Corp. meantime said it wanted to raise up to C$5 million via a private placement of units. The company will use the proceeds to speed up drilling efforts.

Among settled deals, Zincore Metals Inc. announced it had wrapped a private placement of units, taking in nearly C$3 million. The funds will be used to bring the company's projects closer to feasibility.

Timbercreek Mortgage Investment Corp. is seeking additional funding from a private placement of common shares. The company is hoping to raise about C$2.67 million, which will be used, in part, for investment purposes.

Also, Capella Resources Ltd. revised the terms of a previously announced private placement. The company had originally intended to sell units but now will sell only stock.

PanTerra Resources Corp. will issue stock and units in its effort to raise C$2 million. The proceeds will be used for drilling work.

Premium wraps first tranche

Premium Exploration took in C$8 million in the first tranche of a private placement of units, according to a press release.

The Vancouver, B.C.-based company is looking to raise C$10 million total. The deal was first announced April 19 and was amended June 9.

Premium is selling a total of 40 million units - 32 million of which were issued in the first closing - at C$0.25 each. The units contain one common share and one half-share warrant.

Whole warrants are exercisable at C$0.35 for 18 months. The strike price is a roughly 15% premium over the July 5 closing share price of C$0.30.

The financing comes as the company is completing the merger of its subsidiary with Clearwater Mining Corp.

"I am pleased that the agents have been committed to the financing during the complex merger with Clearwater, and we look forward to using the funds efficiently while advancing our gold projects through the ongoing drilling," remarked Del Steiner, president, in the release.

Proceeds will be used for ongoing exploration and development, including the on-going phase 3 drill program on the Friday/Petsite project, and for general working capital.

Settlement of the second tranche is expected July 6.

Premium's stock (TSX Venture: PEM) fell 2 cents, or 6.78%, to C$0.275. Market capitalization is C$17.68 million.

Premium Exploration is a North American explorer of gold, silver, platinum and palladium.

Alexandria plans unit placement

Alexandria Minerals will raise up to C$5 million via a private placement of units, the company announced.

Alexandria will issue up to 25 million of the units at C$0.20 each. The units will consist of one common share and one warrant.

The warrants are exercisable at C$0.25 for one year. The strike price represents a 31.57% premium over the previous closing share price of C$0.19.

"We are extremely pleased with the efforts to date of Pollitt & Co Inc. [the placement agent], and feel that this is an important strategic financing for Alexandria," said Eric Owens, president and CEO, in a press release.

"This will allow us to speed up the process of delineation drilling at Akasaba, allowing for both fill-in and step-out drilling as we move toward a National Instrument 43-101 resource estimate this fall."

Proceeds will be used for exploration of the company's Ontario and Quebec mineral properties, including the drill program at Akasaba in Val d'Or, Quebec, and for general corporate purposes. Settlement is expected by July 31.

Alexandria's shares (TSX Venture: AZX) were unchanged at C$0.19. Market capitalization is C$16.34 million.

Alexandria Minerals is a Toronto-based junior gold exploration and development company.

Zincore raises C$2.91 million

Zincore Metals, a Vancouver, B.C.-based mineral exploration company, said it had closed its previously announced private placement of units, raising C$2.91 million.

The deal originally priced on June 28. One company insider participated in the deal.

The company sold 8.31 million units at C$0.35 per unit. Each unit held one common share and one half-share warrant.

Whole warrants are exercisable at C$0.45 for two years. The strike price represents a 60.7% premium over the July 5 closing price of C$0.28.

"We are very pleased to have completed this placement at a premium to our market price," said Jorge Benavides, president and chief executive officer, in a press release.

"This is a testament to the faith investors have placed in our company and its plans. These funds will enable us to commence the in-fill drilling at our Accha and Yanque Projects in southern Peru, which we hope will move us closer to the feasibility stage. The funds will also allow us to further the exploration at our other properties, including our Gatineau prospect in Quebec, Canada."

Zincore's shares (Toronto: ZNC) gained 2 cents, or 7.14%, to C$0.30. Market capitalization is C$31.91 million.

Timbercreek to sell stock

Timbercreek Mortgage Investment is seeking C$2.67 million from a private placement of class B common shares, according to a press release.

The company will sell 267,500 of the shares at $10 per share.

Proceeds will be used to fund mortgage loan investments from time to time as well as for general corporate purposes.

The company could not be reached for comment on Tuesday.

Timbercreek's stock (Toronto: TMC) improved by 25 cents, or 2.46%, to C$10.40. Market capitalization is C$87.64 million.

Timbercreek Mortgage Investment is a Toronto-based investment firm.

Capella revises deal terms

Capella Resources amended the terms of a previously announced private placement, the company said in a press release.

Capella brought the C$2.03 million financing to market on June 16. The company initially intended to sell units, but changed the terms so that it is now selling non-flow-through and flow-through common shares.

The company will issue up to 10 million of the non-flow-through shares and an equal amount of the flow-through shares. The non-flow-through securities will be sold at C$0.1025 each - a 36.5% discount to the July 5 closing share price of C$0.14 - while the flow-through stock will be issued at C$0.1025 as well.

Proceeds will be used for exploration and working capital.

The company did not return calls seeking comment on Tuesday.

Capella's equity (TSX Venture: KPS) fell 1½ cents, or 11.11%, to C$0.12. Market capitalization is C$5.65 million.

Capella Resources is a Dartmouth, N.S.-based junior exploration company focused on precious and base metals.

PanTerra to issue units, shares

Calgary, Alta.-based PanTerra Resource will conduct a private placement of units and stock in an effort to raise C$2 million.

The company is selling 5 million units at C$0.20 each and up to 4 million flow-through common shares at C$0.25 each.

The units will contain one common share and one half-share warrant. Whole warrants are exercisable at C$0.40 for two years. The strike price represents a 122% premium over the previous closing share price of C$0.18.

Proceeds will be used for drilling work at the company's 100% owned properties in Alberta and Saskatchewan, as well as for working capital. Settlement is expected by July 15.

PanTerra's stock (TSX Venture: PRC) inched up 2½ cents, or 14.29%, to C$0.20. Market capitalization is C$2.57 million.

PanTerra Resources is a diversified junior oil and gas exploration company.

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