Harry Winston arranges $45.6 million; Metanor seals C$12.18 million; Linear secures C$5 million

By Devika Patel

Knoxville, Tenn., March 20 - Harry Winston Diamond Corp. priced a $45.6 million offering of treasury shares after the close Thursday. The deal gives investor Kinross Gold Corp. a 19.9% equity stake in the company.

Shares of Harry Winston (NYSE: HWD) jumped 35.64% on Friday, or 67 cents, to close the week at $2.55.

Metanor Resources Inc. said it completed a C$12.18 million private placement of units Friday via lead agent Northern Securities Inc.

NetFabric Holdings, Inc. said it has sold a $5 million secured convertible promissory note to Fortify Infrastructure Services, Inc. The funds from this sale will be used primarily to repay debt, the company said.

Linear Gold Corp. settled a C$5 million units sale via Sprott Asset Management, the proceeds of which will be used to acquire and develop more gold-focused assets.

Harry Winston sells $45.6 million

Harry Winston announced after the close Thursday that investor Kinross will buy $45.6 million of the Toronto-based diamond retailer's treasury shares at $3.00 apiece. Kinross would subsequently have a 19.9% equity stake in the company.

In addition, the investor has agreed to buy new partnership units, which represent a 22.5% interest in the partnership that holds Harry Winston's 40% joint venture interest in the Diavik Diamond Mine, for $104.4 million.

Proceeds will be used to repay existing bank debt, for general corporate purposes and to fund Harry Winston's share of the capital costs to complete the underground expansion of the Diavik mine.

This new relationship will enable the company to access Kinross' mining expertise, as well as its financial strength, the company said in its announcement.

"We welcome this important investment by one of the world's leading mining companies," Harry Winston chairman and chief executive officer Bob Gannicott stated. "We look forward to developing our relationship with Kinross as we build our company and consider new opportunities for future growth."

Kinross may also participate in future financings, the company said.

Metanor concludes C$12.18 million

Metanor said the greenshoe was partially exercised, lifting a C$12 million deal that priced earlier this month to C$12.18 million. The company sold 24,354,800 units of one common share and one half-share warrant at C$0.50 apiece. Of the units sold, 354,800 were part of the partially exercised greenshoe.

The whole warrants will be exercisable at C$0.65 for two years.

Proceeds will be used to fund a work program for the rehabilitation and improvement of the surface infrastructure of the mining exploration company's Bachelor Mine.

The company is based in Val d'Or, Quebec; its shares (TSX Venture: MTO) dropped 5.88% Friday, or 3 cents, to close at C$0.48.

NetFabric wraps $5 million

Brookfield, Conn.'s NetFabric said it concluded a $5 million note sale on March 12. The 8% note, sold to Fortify Infrastructure, will mature in six months and is convertible into subsidiary NetFabric Technologies, Inc.'s series A preferred stock.

NetFabric develops internet protocol platforms. Its shares (Pink Sheets: NFBH) were unchanged, closing at $0.0005 on Friday.

The company used about $3 million of the proceeds to repay debt owed to Laurus Master Fund. The balance of the proceeds will be used for debt repayment, for other payables and for working capital.

Linear gets C$5 million

Gold explorer Linear said it sold C$5 million in units of one common share and one half-share warrant at C$1.10 apiece in a deal that priced March 13.

The two-year warrants are exercisable at C$1.50.

Proceeds will be used for working capital and to fund the acquisition, exploration and development of high quality gold focused assets.

"Linear is very well-capitalized for pursuing new opportunities," Linear president and chief executive officer Wade K. Dawe said in a news release. "Following completion of this financing, with only 32.5 million shares outstanding, Linear's debt-free balance sheet includes working capital in excess of $30 million and a portfolio of quality gold projects, including carried joint ventures on the company's Ixhuatan project in Mexico and the company's three properties in the Dominican Republic.

"Linear is continuing to review potential acquisitions, focusing on high quality, advanced gold exploration and development opportunities."

Company shares (Toronto: LRR) fell 2.56%, or 3 cents, to close at C$1.14 on Friday.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.