Bass Metals aims for A$10 million; Americas Petrogas to sell stock; Metanor arranges unit sale

By Stephanie N. Rotondo

Portland, Ore., Nov. 24 - The private placement market quieted down Tuesday after a rather active Monday, at least for a shortened holiday week.

Bass Metals Ltd. had one of the day's largest deals, announcing a A$10 million placement of stock. The private issue is part of the company's financing strategy, which also includes an A$5 million right offering.

Meanwhile, Americas Petrogas Inc. said it was seeking C$5 million from a private placement of common stock. According to a source familiar with the matter, investors have reacted "100% positive" to the deal.

Metanor Resources Inc. is hoping to raise more than C$4 million from a placement of units. Among other Canadian mining companies, Southern Silver Exploration Corp. is also planning a unit sale, for proceeds of C$1.5 million.

Bass aims for A$10 million

Bass Metals brought a A$10 million private placement of ordinary shares to market.

The company intends to sell approximately 43.47 million of the shares at A$0.23 each. The deal is already oversubscribed, according to a press release.

The financing will come in two tranches, with the first portion of approximately 15.21 million shares closing in early December. The remainder will be issued upon receiving shareholder approval.

Bass Metals is also planning a A$5.3 million rights offering for existing shareholders.

"This A$15 million capital raising in combination with a planned A$10 to A$15 million banking and/or concentrate pre-payment facility, will generate sufficient cash for the company to undertake its Fossey Mine development and accelerate testing of its new exploration targets in the Hellyer-Que River region," the press release read.

"The directors are encouraged by the strong demand for the placement shares as it is an endorsement of the company's plans and strategy."

Bass Metals' equity (Australia: BSM) closed at A$0.27.

Bass Metals is a West Perth, Western Australia-based mineral exploration company.

Americas Petrogas to issue equity

Americas Petrogas, a Calgary, Alta.-based oil and gas explorer, said it arranged a C$5 million non-brokered private placement of common stock.

The company will issue approximately 11.11 million shares at C$0.45 per share. The deal will come in at least two tranches, with the first expected to close Nov. 30, according to a press release.

Proceeds from the financing will be used for installation and commissioning costs associated with the Medanito Sur block production facilities, for exploration of its potash project and for working capital.

A person familiar with the transaction said the company was "very pleased" with the terms, as well as response from investors. The reaction has thus far been "very positive," the source said.

Americas' shares (TSX Venture: BOE) fell C$0.035, or 7.45%, to C$0.435. Market capitalization is C$39.8 million.

Metanor arranges unit sale

Metanor Resources will take in C$4.02 million via a private placement of equity units, the company said in a news release.

Under the terms of the deal, Metanor will sell 14 million flow-through units at C$0.58 per unit. The units will consist of one flow-through common share and one half-share warrant. Whole warrants are exercisable at C$0.65 for two years.

In addition, the company will issue 3.4 million common share units at C$0.50 per unit. Those units will contain one common share and one half-share warrant, carrying the same terms as those warrants in the flow-through units.

Proceeds will be used to increase and upgrade the company's mineral resources on the Barry property, as well as to advance the Bachelor and Bachelor Lake Mine properties. Settlement is expected by Dec. 11.

Metanor's stock (TSX Venture: MTO) dropped 5 cents, or 9.43%, to C$0.48. Market capitalization is C$52.9 million.

Metanor Resources is a Val d'Or, Quebec-based mineral exploration company.

Southern Silver seeks C$1.5 million

Vancouver, B.C.-based Southern Silver Exploration is seeking C$1.5 million from a private placement of units.

The company will issue the units at C$0.10 per unit, according to the terms of the non-brokered financing. The units will hold one common share and one warrant. The warrants are exercisable at C$0.20 for two years.

Proceeds will be used for drilling, as well as working capital.

Calls seeking comment were not returned Tuesday.

Southern's stock (TSX Venture: SSV) ended unchanged at C$0.12. Market capitalization is C$5.37 million.

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