Clifton Star expects amended deal to close Monday; Wealth Minerals, Pixman offer stock-warrant units

By Kenneth Lim

Boston, Sept. 25 - Clifton Star Resources Inc. said the latest amendment to its C$7 million unit placement was a "clerical issue," and the company expects to close the deal Monday.

Wealth Minerals Ltd. said it will raise C$1.05 million through a sale of stock and warrant units, while Pixman Nomadic Media Inc. announced plans to raise C$7.61 million.

Clifton amends terms

Clifton said it is adjusting the terms of a non-brokered private placement of units with MineralFields Group, but the total deal amount remains at C$7 million.

The company is raising C$5 million through a sale of about 2.1 million hard-dollar units of one common share and one warrant at C$2.43 per unit. It originally planned to raise the same amount through the sale of about 2 million units at C$2.54 apiece.

Each warrant will be exercisable at C$2.85, instead of the previously announced C$2.94, for two years.

A separate C$2 million flow-through placement comprising 666,667 units of one flow-through share and one warrant at C$3 per unit remains the same. Each warrant will be exercisable at C$3.30 for two years.

Clifton is a Vancouver, B.C.-based mineral exploration company.

Clifton common stock (TSX: CFO) closed at C$3.25 on Thursday, up by 14.04% or C$0.40.

The amendment was made to accommodate a request by the underwriter, Clifton president Harry Miller told Prospect News. He had been fielding queries Thursday because investors and other parties were a little confused by the change, he said.

"It came from the underwriter," Miller said. "It's a quirk in the manner in which they book the funding, and the way we had it before, they would have been out some funds, and so as a result of it they asked if we can do it...It's a clerical kind of situation, and it's only to accommodate MineralFields, and unfortunately it caused some issues here."

Miller expects that the placement will be closed on Monday.

"We're going to be closing on Monday...and once it's closed, we will issue an announcement," he said.

Clifton remains a capital-seeking business, and it will likely have to return to the market again, Miller said.

"We're spending about C$1 million a month on the drilling program," he said.

The company has generally not faced difficulty raising capital, said Miller, who was unfazed by the current market conditions.

"We've never had a problem doing what we're doing," he said. "And frankly people are quite surprised that we're able to get our funds...even before gold started moving up. We've never had problems, and I think our stock price has reflected that. We're looking down the road here to some assays, and once we get our 43-101 report, we're looking down the road for substantially higher values."

Wealth Minerals raises for drilling

Wealth Minerals plans to sell 3 million units of one common share and one transferable warrant to raise C$1.05 million that will be used for exploration.

The deal is priced at C$0.35 per unit. Each warrant may be exercised at C$0.50 per share for two years.

Proceeds will be used to fund exploration programs on the company's uranium exploration projects in Argentina, for ongoing mineral property investigations and potential acquisitions and general working capital.

Wealth Minerals is a Vancouver, B.C.-based mineral exploration company.

The company needs money at the moment, and did not have many options besides an equity placement, company spokesman Glenn Shand said.

"That's how junior companies raise money," he said. "Who's loaning money based on future exploration results? No one."

Pixman to raise C$7.61 million

Pixman said it plans to raise C$7.61 million through two private placements.

In the first deal, the company will sell about 33.9 million units of one common share and one half-share warrant at C$0.18 per unit for a total of C$6.11 million. Each warrant will be exercisable at C$0.30 for two years.

Investors in this deal include the Caisse de depot et placement du Quebec, for 13.9 million units, or C$2.5 million; FIER Boreal 02 and FIER Ville-Marie, sec., which will each buy 5.6 million units, for C$2 million; Le Fonds d'investissement Actions-croissance PME Inc., which will subscribe for 2.8 million units, or C$500,000; and various other investors who will buy a total of 9.2 million units for C$1.11 million.

In the second deal, the company will sell a number of units of one common share and one half-share warrant at a price determined by market conditions to the Caisse de depot et de placement du Quebec for C$1.5 million. Each warrant will be exercisable at the purchase price for two years.

Proceeds from both deals will allow Pixman to boost its revenues and will contribute to improving its offerings.

Pixman is a Montreal, Quebec-based media company.

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