Torotrak, Acadian share prices surge after private placements announced; Greystar selling stock

By Devika Patel

Knoxville, Tenn., March 17 - Acadian Mining Corp.'s share price (Toronto: ADA) doubled on Tuesday, up 2 cents, to close at C$0.04 after the company disclosed it negotiated a C$10 million stock placement.

Britain's Torotrak plc also saw a significant rise its stock price after completing a £2.41 million private placement of stock with Allison Transmission, Inc., making Allison the company's largest shareholder. The Lancashire, England-based company's shares (London: TRK) soared 69.23%, or 9p, closing at 22p Tuesday after the deal was announced.

And Canada's Greystar Resources Ltd. arranged a C$12.04 million private placement of shares, an investment the company views as a "significant endorsement" of its corporate strategy.

Acadian aims for C$10 million

Halifax, N.S.-based mining company Acadian announced it will take in C$10 million through a private placement of 338,111,334 common shares, which will be sold to Golden River Resources Corp.

"The proposed investment of C$10 million by Golden River headed up by Joseph Gutnick, a well-known and respected Australian mining executive and entrepreneur, is a strong endorsement of the go forward potential of Acadian's significant gold and base metal assets. We look forward to recommencing the building process of Acadian with the completion of this investment," the company's president and chief executive officer, Will Felderhof, said of the financing in a press release.

The deal will close in two or more tranches. The closing of the first tranche, for C$1 million, or 38,111,334 shares, is expected to occur on April 10.

Proceeds will be used for operational overhead, advancement of gold properties and debt repayment.

Torotrak gets £2.41 million

Torotrak sold £2.41 million in shares to Allison Transmission and also completed a license and exclusivity agreement with the investor. Under that agreement, Allison purchased initial license rights for £8.44 million.

The transmission manufacturer sold 14,608,290 ordinary shares at 16.51p per share to Allison, making Allison its largest shareholder.

The sold shares represent approximately 10% of the company's previously issued ordinary share capital.

Proceeds will be used to finance potential acquisition opportunities.

"This is the most significant endorsement of our technology thus far," the company's chief executive, Dick Elsy, stated in a news release. "Allison is the world leader in commercial vehicle transmissions, and the agreement provides us with access to large production volumes in this high value sector."

"Despite the economic crisis worldwide, more interest is being shown by forward-thinking companies in our technology than ever before due to the growing global focus on fuel efficiency and cost. This interest is being turned into value for our shareholders under agreements such as that announced today," Elsy continued.

"The value we have secured through this agreement with Allison will be realized over both the short term, through license fees, and the longer term, as the visibility of high volume royalties becomes clearer. We are delighted to be announcing a successful application of British technology."

Lawrence E. Dewey, Allison's chairman and chief executive officer, also applauded the deal.

"We are excited about working with Torotrak to incorporate their unique technology into a new family of products that will offer our customers around the world new features and benefits," Dewey said in a press release.

Greystar aims for C$12.04 million

Greystar will raise C$12.04 million in a private placement of stock with World Bank member International Finance Corp., or IFC. The company plans to use the proceeds to advance the pre-development stage of the company's Angostura gold-silver project in northeastern Colombia.

"An investment in Greystar by IFC would mark a significant endorsement of our corporate strategy and the advancement of our multi-million ounce Angostura gold resource in the northeastern region of Colombia," Greystar president David Rovig said in a press release. "We have always had a stated objective to combine the best Colombian and international operational methods to move the Angostura deposit toward a production decision and it is gratifying to see this effort acknowledged."

Greystar shares (Toronto: GSL) rose 3.11%, or 11 cents, to close at C$3.65 Tuesday.

Greystar, a gold and silver mining company based in Vancouver, B.C., will sell 6,579,161 units at C$1.83 apiece to International Finance Corp. The units consist of one common share and three quarter-share warrants. Each whole warrant is exercisable at C$2.47 for five years, subject to acceleration.

Settlement is expected at the end of March.

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