High River Gold aims for C$57 million; Nevada Copper to place units; Penrice Soda seeks funds

By Stephanie N. Rotondo

Portland, Ore., Oct. 27 - The metals and mining sectors dominated Tuesday's PIPEs market.

High River Gold Mines Ltd. said it was looking to raise C$57 million by privately placing equity. Part of the funds will be used to repay debt, while the remaining portion will be used for exploration.

Nevada Copper Corp. meanwhile announced a C$11.25 million private placement of units.

Also, Penrice Soda Holdings Ltd. said it would pay down outstanding debt with the proceeds raised in its planned A$6.8 million private placement of equity. The company is also offering another financing plan for existing shareholders.

Vulcan Minerals Inc. said it would conduct a private placement of share and units in its effort to raise C$5.09 million. The funding will be used for exploration activities.

In completed deals, Yalian Steel Corp. wrapped a $5.7 million private stock sale to a Chinese investor.

High River aims for C$57 million

High River Gold Mines, a Toronto-based gold mining company, orchestrated a C$57 million private placement of stock.

Polenica Investments Ltd., an affiliate of Troika Dialog Group, is the sole investor.

The company will sell 150 million common shares at C$0.38 per share.

Approximately $27 million of the financing will be used to pay down debt, while the remaining funds will be used for exploration at the company's Buryatzoloto property.

"The private placement will significantly strengthen High River's financial position and allow the company to finance its capex program and repay a portion of the existing indebtedness," said Igor Klimanov, chief executive officer, in a statement. "Troika is a well-known Russian financial institution and we look forward to working with our new investor to continue developing High River's potential."

"Troika Dialog Group as financial investor has a proven track record of investing into companies with strong future prospects operating in Russia across various sectors," added Richard Ogdon, chief risk and capital officer at Troika Dialog. "We believe in the growth potential of High River, in particular in the context of strong gold sector fundamentals."

High River's equity (Toronto: HRG) fell C$0.015, or 3.15%, to C$0.385. Market capitalization is C$250 million.

Nevada Copper plans unit placement

Nevada Copper will raise C$11.25 million via a private placement of equity units, according to a press release.

Capstone Mining Corp. is the sole investor.

The company will issue 4.5 million units at C$2.50 per unit. Each unit will hold one common share and one half-share warrant. Whole warrants are exercisable at C$3.00 for two years.

The warrants also carry a clause allowing for them to expire sooner should Nevada Copper's stock trade at C$3.50 or higher for 20 consecutive trading days.

Proceeds will be used to complete a pre-feasibility study of the Pumpkin Hollow property in Nevada, as well as for general working capital.

Calls seeking comment were not returned Tuesday.

Nevada Copper's shares (Toronto: NCU) gained 11 cents, or 5%, to C$2.31. Market capitalization is C$92.5 million.

Nevada Copper is a Vancouver, B.C.-based mining company.

Penrice seeks funds to repay debt

Penrice Soda is seeking A$6.8 million to reduce debt and to grow its business, the company said.

To that end, the Osborne, Australia-based company will conduct a private placement of stock. Penrice will sell 7.9 million ordinary shares at A$0.85 per share.

In addition, the company is planning a 1 for 2 non-renounceable entitlement offer at A$0.70 per share. Proceeds from that transaction will total A$21.3 million.

"Immediately following the successful completion of the offer, Penrice's gearing is expected to reduce from 58% to approximately 41%, in-line with the company's revised target gearing levels of 40 to 50%," commented John Heard, chairman, in a news release. "The response to the placement is most pleasing and further highlights investors' continued support for the company and its positive outlook.

"Over the past three years, [the board of directors] has implemented a significant program to revitalize the company and its operations to position it better for sustainable growth," Heard continued.

"This action has seen Penrice refresh its management team, expand and upgrade its operating assets under the Way Forward Plan and now, as a result of the successful capital raising, recapitalize the company's balance sheet. [The] directors are confident that the new capital raised will position Penrice well to take advantage of its improved operational performance and the potential of the sodium bicarbonate expansion."

Heard also announced his retirement in the release.

Penrice's stock (Australia: PSH) closed at A$1.06.

Vulcan to sell shares, units

Vulcan Minerals will raise C$5.09 million from a private placement of flow-through common shares and units.

The company will sell 4.7 million of the flow-through shares at C$0.65 per share. Also, Vulcan will sell 3.7 million units at C$0.55 per unit.

Each unit will contain one common share and one half-share warrant. Whole warrants are exercisable at C$0.75 for two years.

The warrants also have an acceleration clause.

"The proceeds of the offering will be used to fund exploration and/or development activities in western Newfoundland and offshore Labrador and to provide general working capital," according to a press release.

Vulcan's stock (TSX Venture: VUL) finished unchanged at C$0.60. Market capitalization is C$26.7 million.

Vulcan Minerals is a Canadian-based mining company.

Yalian raises $5.7 million

Yalian Steel concluded a $5.7 million private placement of equity, the company announced.

Jiangsu Tongyu Steel Pipe Group Co., Ltd. purchased the stock.

Yalian issued 5.7 million common shares at $1.00 each. As of the closing, Tongyu holds a 5.8% equity interest in the company.

"Tongyu is an industry leader in China," said Edward "Bud" M. Siegel Jr., chairman and acting CEO of Yalian, in a press release.

"Their experience and guidance has proven invaluable in our early development as a company. Now that we move to the next phase in our evolution and begin to introduce our quality products and manufacturing capabilities to the market, we are very pleased that they will continue as our valued partner."

Yalian's shares (TSX Venture: YL) dipped 5 cents, or 2.78%, to C$1.75. Market capitalization is C$160.7 million.

Yalian Steel is a Vancouver, B.C.-based manufacturer of steel.

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