Monthly Archives: November 2010

Asia Now Resources Corp. closed Private Placement transaction with BVI company

Asia Now Resources Corp., a mineral exploration company focused on developing ore deposits in China, announced the closing of a non-brokered private placement whereby the Chinese company issued 42,400,000 new common shares to China Gold Pte. Ltd., an indirect wholly-owned subsidiary of Hong Kong-listed Lippo China Resources Limited, and 2,842,000 new common shares to Prime Orient Investments Limited, the company incorporated in the British Virgin Islands and engaged in investment holding. 

By terms of the transaction, the price will be US$0.30 per common share for gross proceeds of approximately US$13,572,600. The net proceeds from the private placement will be used primarily for exploration activities in Yunnan Province, PRC.

As a result of the private placement, China Gold becomes the holder of approximately 49.9% of all issued and outstanding common shares of Asia Now on an undiluted basis and approximately 47.7% on a fully diluted basis. Immediately after closing of the transaction, BVI-registered Prime Orient holds approximately 2.6% of all issued and outstanding common shares of Asia Now on an undiluted basis, and approximately 2.4% on a fully diluted basis.

The shares issued to China Gold as well as the shares issued to Prime Orient are subject to a “hold period” expiring on March 13, 2011, established in accordance with applicable securities legislation and the TSX Venture Exchange Corporate Finance Manual.

BVI company’s subsidiary announced its forecasts for 2010 and 2011

Barents Re Reinsurance Company, which is a Panama-based subsidiary of British Virgin Islands-registered holding company Standard Capital, announced that it expects 14% premium growth in 2010. This may be compared to the extraordinary high growth of 40% in 2009, when written premiums reached US$182mln. By words of company’s general director Gerardo Garcia, last year the company benefited from the global financial crisis. 

The executive also noted that the company is likely to receive similar premium growth in 2011 and in 2010. In the next few years, the company expects significant growth in Mexico, Colombia, Peru, Brazil and Argentina.

Barents Re is one of the largest reinsurance companies in Latin America, mainly focused on facultative reinsurance for mass market insurance products, surety bonds and financial risks. The company has representative office in Venezuela, an office in Miami and a subsidiary in Belize. It is now in the process of entering Puerto Rico, to start operations there in 2011. Last year Barents Re had approximately US$11 million in net profits, ROE of 16.9% and net loss ratio of 56%.

BVI-registered Chaarat Gold Holdings Ltd announced more than £2 million share placement

British Virgin Islands-registered Chaarat Gold Holdings Limited announced the issue of 5,700,000 new ordinary shares of US$0.01, at a placing price of 46 pence per share, to ASVI Inc. ASVI is a company based in Malaysia, providing high end technical support to mining projects.

Following the issue of the Placing Shares there will be 147,033,900 ordinary shares of US$0.01 in issue. The Placing, which is being conducted under the existing power granted to the Directors to allot shares, is expected to be completed on 15 November 2010, on admission of the Placing Shares to trading on AIM.

The anticipated investment of approximately £2 million by China Nonferrous Metals International Mining Co Ltd has been canceled due to the regulatory delays in obtaining approval for the investment. ASVI indicated its interest in purchasing the shares from the canceled subscription, thus generating approximately 15% more cash for the company than through the CNMIM investment.

CEO of Chaarat Dekel Golan in his comments on the transaction said that ASVI’s substantial expertise will assist Chaarat, by providing high level consulting advice including on the exploration and project development of the Chaarat projects.

BVI-registered company Mail.ru announced Initial Public Offering price

British Virgin Islands-incorporated Mail.ru Group Limited, which is the largest Internet company in Russian-speaking Internet markets, last week announced the price for its initial public offering of ordinary shares in the form of global depositary receipts (GDRs), to be admitted to the Standard Listing on the London Stock Exchange. The price of the public offering, which comprises 32.93 million ordinary shares, offered in the form of GDR, has been set at US$27.70 per GDR. This is equivalent to US$912.04 million at the offer price. One GDR will represent an interest in one ordinary share of the company.

The BVI company and the Selling Shareholders have granted to the joint bookrunners the option to acquire up to 3.29 million additional ordinary shares in the form of GDR as the over-allotment option. 3.03 million ordinary shares in the form of GDRs will be sold by the company, and 29.89 mln shares will be sold by selling shareholders, not including the shares to be sold pursuant to the exercise of the over-allotment option.

Following the offering, the total number of shares in issue will be 196.30 million. The offer price implies an equity value for the company of US$5.63 billion prior to new share issue and US$ 5.71 billion post new share issue. The gross proceeds from the primary portion of the offering are expected to be approximately US$84.01 mln (assuming no exercise of the over-allotment option). These proceeds will be used to fund, in part, the agreed acquisition of the additional equity stake in online social networking site vKontakte.

Delivery and payment for the GDRs is expected on 10 November 2010. Admission of the GDRs to the Official List and to trading on the London Stock Exchange plc’s regulated market is expected to occur on 11 November 2010. Mail.ru Group Limited expects that conditional trading through the International Order Book will commence on or about 5 November 2010, and unconditional trading is expected to occur on 10 November 2010.