Tiger to sell stock; Canacol upsizes deal; Cortex wraps financing; Silverado gets equity line

By Stephanie N. Rotondo

Portland, Ore., May 12 - A variety of companies came to the private placement market Tuesday, with a variety of deal sizes.

Tiger Resources Ltd. plans to sell stock to raise A$9 million. The company will use proceeds to fund a July payment on its Kipoi project.

Meanwhile, Canacol Energy Ltd. again upsized its placement of units. The deal, which originally priced on April 28, is now valued at C$6 million.

Among completed deals, Cortex Business Solutions Inc. wrapped a C$2.2 million tranche of its C$5 million unit sale.

Silverado Gold Mines Ltd. announced it obtained a $3 million to $100 million equity line of credit.

Tiger to sell equity

Tiger Resources, a Perth, Western Australia-based mineral exploration company, arranged a A$9 million private placement of stock.

Under the terms of the deal, the company will sell 90 million shares at A$010 per share.

Settlement is expected by May 22.

Tiger will use proceeds from the financing to pay a July 2009 payment in connection to its 60% interest acquisition of SEK sprl, a DRC registered company that has the rights to the Kipoi project in the Democratic Republic of Congo.

"Tiger is focused on the near term development of Kipoi based on an optimized feasibility study that significantly enhanced the economics of the project," the company said in a press release. "Tiger is targeting securing project finance for stage 1 of the planned development at Kipoi in the third quarter of 2009, and is targeting commencement of production in the second quarter of 2010."

Tiger's shares (Australia: TGS) closed at A$0.13.

Canacol upsizes deal again

Due to market demand, Canacol Energy once again upsized a private placement of units originally priced on April 28.

The deal first came at C$5 million and was lifted to C$5.3 million on May 7. The company plans to sell units containing one common share and one half-share warrant at C$0.125 per share. Each whole two-year warrant is exercisable at C$0.20.

Brian Hearst, chief financial officer of Canacol, said in an e-mail to Prospect News that investors had reacted positively to the deal and that proceeds would be used, in part, for development drilling on the company's Colombia properties.

The transaction is expected to close in two parts, with the first coming May 14 and the second on May 21.

Canacol's stock (TSX Venture: CNE) held in at C$0.14. Market capitalization is C$18.2 million.

Canacol Energy is a Calgary-based independent onshore oil exploration company.

Cortex wraps first tranche

Cortex Business Solutions settled a C$2.2 million tranche of a C$5 million private placement of units originally priced on April 7.

The company sold 11 million out of a total 25 million units. The units contain one common share and one half-share warrant. The units sold at C$0.20 per unit, with each whole warrant exercisable at C$0.30 for the first two years and at C$0.45 for the remaining two years.

The Calgary-based company plans to use proceeds to further its network expansion program.

Cortex's stock (TSX Venture: CBX) closed steady at C$0.18. Market capitalization is C$18.8 million.

Silverado obtains equity line

Silverado Gold Mines entered into a $100 million equity line of credit with Ashborne Finance Ltd., according to a press release.

Under the terms of the deal, Ashborne will purchase between $3 million and $100 million of Silverado's common stock at 70% of the current market price, assuming the price is below $1.00. If the current price is above $1.00, then the purchase price will be at 80% of the market price.

"We anticipate that our entry into this credit line agreement could facilitate the funding of our ongoing business activities in the present difficult economic climate," stated Garry Anselmo, Silverado's president, in the release.

Silverado's equity (OTCBB: SLGLF) ended unchanged at $0.0094.

Silverado Gold Mines is a Vancouver, B.C.-based gold explorer.

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