Sabina Gold & Silver brings C$15 million deal for exploration; Bontan wraps $7.55 million sale

By Stephanie N. Rotondo

Portland, Ore., May 11 - Canadian issuers dominated Tuesday's PIPE market.

Sabina Gold & Silver Corp. brought a C$15 million bought-deal to market. The company intends to sell flow-through common shares to raise the funds, which will then be used for exploration efforts.

Among settled transactions, Bontan Corp. took in $7.55 million from a private placement of units. A portion of the proceeds will be used in regards to the company's offshore drilling licenses in Israel.

Anglo Canadian Oil Corp. also completed a deal, pocketing C$5 million. Additionally, the company said it had another private placement getting ready to close for another C$2.5 million.

And Augen Gold Corp. gave an update of its previously announced private placement of units. The deal is expected to close this week, generating proceeds of up to C$4.9 million.

Vertro Inc. announced it had secured a $2 million equity facility. The funding will be used to maintain compliance with Nasdaq listing requirements.

Sabina brings bought deal

Sabina Gold & Silver announced a C$15 million bought-deal private placement of equity.

The Vancouver, B.C.-based company will sell 7.5 million flow-through common shares at C$2.00 per share.

"The terms are pretty standard," Nicole Hoeller, director of investor relations, told Prospect News. When asked why the company had chosen to do the financing at this time, she said that they "thought there was an opportunity. We were told that the money was there."

Hoeller said the flow-through financing would be used for exploration costs, as the company's exploration funds have run out. Sabina, she said, likes to use flow-through dollars for exploration in order to keep its hard dollar treasury untouched.

"This will allow us to continue to use flow-through for exploration and keep the hard dollars in the bank," she said. The funding should give the company about two years of exploration funding, she added.

Settlement is expected by June 8.

Sabina's stock (Toronto: SBB) fell 3 cents, or 1.56%, to C$1.89. Market capitalization is C$218 million.

Bontan settles unit sale

Bontan wrapped a $7.55 million private placement of units, according to a regulatory filing.

The Toronto-based company sold 37.75 million units at $0.20 each. The units consisted of one common share and one warrant, which is exercisable at $0.35 for five years.

Some of the proceeds raised will be used in connection with the company's 11% net working interest in two drilling licenses - Sarah and Myra - in offshore Israel.

"We are very pleased with the progress our company has made over the last seven months," said Kam Shah, chief executive officer, in a press release. "We have met all of our financial obligations in relation to the offshore Israeli project and look forward to further developmental activities in both the Sarah and Myra licenses. We have received tremendous support from our existing shareholders as well as from new sophisticated investors who participated in our recent private placement.

"It should be a very exciting year ahead for our company."

Bontan's shares (OTCBB: BNTNF) declined 3 cents, or 8.57%, to $0.32.

Bontan is an investor and operator of natural resource projects.

Anglo seals C$5 million

Anglo Canadian Oil took in C$5 million from a brokered private placement of units and equity, according to a press release.

Anglo sold approximately 3.84 million flow-through shares at C$0.20 per share, for proceeds of C$3.5 million. The company also sold 8.33 million units at C$0.18 for C$1.5 million.

The units contained one common share and one half-share warrant. Whole warrants are exercisable at C$0.25 for one year.

Also, Anglo said it expected to close its previously announced C$2.5 million non-brokered private placement of units, shares, or some combination thereof on May 12.

"It is anticipated that the net proceeds of the offering will be used for drilling and evaluating Anglo's newly acquired Nordegg oil shale property in West Central Alberta as well as operations on Anglo's Southwest Saskatchewan Bakken oil bearing lands and for general corporate purposes," the company said in the release.

Anglo's equity (TSX Venture: ACG) dipped 3 cents, or 7.81%, to C$0.30. Market capitalization is C$22.5 million.

Anglo Canadian Oil is a Calgary, Alta.-based petroleum and natural gas company.

Augen to pocket C$4.9 million

Toronto-based Augen Gold said it will settle a C$4.6 million private placement of units in the next couple of days.

The deal originally priced April 23 at C$1.75 million, but was later upsized to C$4 million with a 15% greenshoe on April 29. The financing is expected to close May 13.

Augen will sell both common share and flow-through units in the transaction. A total of 18.77 million common share units will be issued at C$0.17 each, generating proceeds of C$3.19 million. The company will raise another C$1.41 million via the issuance of 6.40 million flow-through units at C$0.22 each.

Additionally, the company will sell another 1.76 million common share units in the final closing of the deal for another C$300,000, for total proceeds of C$4.9 million.

The common share units will hold one common share and one warrant. The flow-through units will contain one flow-through share and one half-share warrant.

Whole warrants are exercisable at C$0.25 for 18 months.

Proceeds will be used for exploration, to retire debt and for working capital.

The company could not be reached for comment on Tuesday.

Augen's shares (TSX Venture: GLD) slipped 1 cent, or 2.33%, to C$0.21. Market capitalization is C$10.7 million.

Vertro gets reserve facility

Vertro, a Fort Myers, Fla.-based internet company, inked a deal with AGS Capital Group LLC for a $2 million reserve equity financing facility, according to a regulatory filing.

The deal was negotiated May 10.

Under the terms of the facility, Vertro can draw down tranches of up to 100% of the average daily trading volume for the five days preceding the draw. The price per share will equal 92% of the volume-weighted average of the stock during the five days preceding the draw request.

"We believe that this financing agreement will help us meet Nasdaq's $2.5 million stockholders' equity requirement if we are unable to meet the requirement through growth in continuing operations by the June 14 deadline," commented Peter Corrao, president an chief executive officer, in a press release.

"The company's current plan is to draw down an amount under this agreement sufficient to regain compliance with the Nasdaq requirements while limiting dilution for our shareholders."

Vertro's equity (Nasdaq: VTRO) dipped 9 cents, or 13.85%, to $0.56. Market capitalization is $20.1 million.

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