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Gold/Mining/Energy : The Molybdenum Discussion Board -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (2756)	4/5/2007 10:12:03 AM
From: LoneClone	Respond to of 3267

IPO for Sprott Molybdenum gets $36M lift Blue Pearl Mining weighs in with three million shares Barry Critchley, Financial Post Published: Thursday, April 05, 2007 canada.com The initial public offering of Sprott Molybdenum Participation Corp. has been given a $36-million head start. Blue Pearl Mining Ltd., which describes itself as the world's largest publicly traded, pure molybdenum producer, has placed three million shares with the issuer, which has filed a preliminary prospectus to go public. Blue Pearl sold the shares via a private placement at $12 per share. When the private placement closes, Blue Pearl will reduce its debt by $36- million. The financing comes with a few terms and conditions. "The private placement is subject to definitive documentation, completion of Sprott Molybdenum Participation Corporation's proposed initial public offering and receipt of all required regulatory approvals and consents, including the approval of the Toronto Stock Exchange," Blue Pearl said. Sprott Molybdenum Participation Corporation (SMPC) is planning to raise cash from investors and to use the proceeds to invest in shares of public and private companies involved in the molybdenum business, either exploring, mining or processing the commodity. Part of the proceeds will be used to invest in, or hold and sell "all commercial forms of molybdenum." The issuer is planning to sell units with each unit consisting of a common share plus one a share purchase warrant. The issuer is a clone of Uranium Participation Corp., which has given investors a healthy return in the two years that it has been public. Initially, investors purchased units -- one common share plus one-quarter of a share purchase warrant -- at $5 a time. The shares closed yesterday at $17.36. SMPC priced its IPO yesterday. It will sell 36 million units at $5 each. The sale by Blue Pearl is unusual but not unknown. For instance, some flow through share funds sell shares directly to money managers as part of an offering. On some of those deals, the issuer sells common shares and flow-through shares and, because of the tax breaks, can command a higher price for the flow through. In the summer of 2003, Canadian Oil Sands Trust closed a $228.5-million financing via the sale of 6.5 million units at $35.15 per unit. Of the number sold, 5.5 million were placed in the public markets and the rest via a private placement. While it is not directly comparable, a few years back a $900-million lead order from Capital Group underpinned a $2.1-billion equity financing by BCE.