Juniors fill their coffers

The money just keeps on flowing into the hands of Canada’s junior mineral explorers.

Over the weekend, Nevsun Resources (NSU-T) raised a gross $47.6 million by privately placing 7 million units priced at $6.80 per unit. A single unit consists of a share and half of a warrant, with each full warrant entitling the holder to buy another share for $10 within five years. The shares will be subject to a four-month hold period.

The units were placed with a syndicate of underwriters co-led by Salman Partners, Dundee Securities and Haywood Securities, and including BMO Nesbitt Burns, Canaccord Capital, and Westwind Partners.

The underwriters have an option to buy up to 3 million more units at the same issue price, up to 48 hours prior to the expected Dec. 18 closing.

Proceeds are earmarked for development of the Tabakoto and Segala gold projects in Mali, for exploration at the Bisha gold project in Eritrea, and for general working capital.

Robert Friedland’s Ivanhoe Mines (IVN-T) filed a preliminary short-form prospectus to raise up to US$100 million in an equity offering of units comprised of one share and half a warrant, with each full exercisable within two years. Pricing of the units and the strike price of the warrants has not been determined yet, though Ivanhoe hopes to close the financing before Christmas.

The underwriters, co-led by HSBC Securities (Canada), Griffiths McBurney & Partners and CIBC World Markets, will have an option to buy up to an additional 15% of the offering within 30 days from closing.

The market reaction to the deal was not kind: Ivanhoe shares were hammered, dropping $1.01 to $9.89 on 3.3 million shares traded, or about 50% above average volume.

In Vancouver, Formation Capital (FCO-T) successfully completed a $10-million financings with the help of lead agent Jennings Capital as well as Desjardins Securities and Dominick & Dominick Securities.

The junior privately placed 32.73 million units priced at 25 apiece. Each unit comprises a share and half of a warrant, with each whole warrant entitling the holder to buy another share for 50 within two years.

For their efforts, the agents will scoop up a 6% cash commission plus warrants equal to 6% of the number of units sold.Another non-brokered 7.27 million units were privately placed under the same terms and conditions.

Formation wil use the money to advance its Idaho Cobalt project in Idaho’s Lemhi County as well as its Big Creek hydrometallurgical complex and associated silver refinery, situated 200 miles to the north.

Formation describes the Idaho Cobalt project, which is at the permitting stage, as a “unique high-grade, primary cobalt deposit that is metallurgically favourable for the production of high-purity cobalt products.”