EarthShell settles $4.5 million convertible debenture offering; Colombia Goldfields raises $1.87 million

By Sheri Kasprzak

New York, Jan. 11 - EarthShell Corp. led PIPE action on Wednesday with word that it closed a $4.5 million private placement of 12% convertible debentures.

The three-year debentures were sold to Cornell Capital Partners, LP and are convertible into common shares at the lesser of $3.00 or 88% of the average of the two lowest volume-weighted average prices for the 10 trading days before conversion. Cornell received warrants for 350,000 shares, exercisable at $4.00 each for two years.

EarthShell received the proceeds from the deal on Jan. 6, when the company's stock closed at $2.04. On Wednesday, when the deal was first announced, the company's stock remained unchanged at $1.85 (OTCBB: ERTH).

In March 2005 EarthShell raised $2.5 million from a private placement of a promissory note with Cornell. The 12% note matures in March 2006.

Looking to its earnings, EarthShell reported net income of $1,893,882 for the quarter ended Sept. 30, 2005, compared with net income of $1,645,931 for the same quarter of 2004.

Based in Santa Barbara, Calif., EarthShell licenses technologies used in the manufacture of foodservice packaging.

Elsewhere in light private placement activity Wednesday, Colombia Goldfields Ltd. wrapped a $1,875,650 stock offering.

The company sold 3,126,083 shares at $0.60 apiece to 20 foreign investors.

Colombia previously headed to the PIPE market for funding in October 2004, raising $1,055,250 from the sale of 4,221,000 units at $0.25 each. Those units were comprised of one share and one warrant. The warrants were exercisable for one year at $0.50 each.

The closing of the deal was announced Wednesday afternoon, and the company's stock gained 6.9%, or 10 cents, to end at $1.55 (OTC BB: CGDF).

Based in Vancouver, B.C., Columbia is a gold exploration company.

In the gold sector, gold prices climbed $4.40 to end at $550.10 per ounce Wednesday after slipping slightly earlier in the week.

"Gold [deals] kind of dropped off for a little while there," said one market source familiar with natural resources. "We're seeing one here, a couple there. There does seem to be some interest. Now that [prices] are back up, we'll probably see a few more."

Elsewhere in natural resources, oil prices made gains Wednesday, advancing $0.57 to end at $63.94 per barrel.

In the broader PIPE market, volume remained very light.

One market source said he couldn't point to a particular reason.

"Stocks were of [Tuesday]," he said. "That might have something to do with it. Other than that, I don't really see anything."

He did note that some issuers may just be pulling together new offerings.

Beaufield plans C$3.4 million deal

Moving back to the gold sector, Beaufield Consolidated Resources Inc. has received an agreement for a private placement with Goldcorp Inc.

Goldcorp agreed to buy 6.8 million units at C$0.50 each. The units consist of one share and one half-share warrant. The full warrants are exercisable at C$0.55 each for two years.

The deal announced in the early afternoon helped lift Beaufield's stock Wednesday by 23.08%, or 12 cents, to settle at C$0.64 (TSX Venture: BFD).

After the placement, Goldcorp will own 9.9% of Beaufield's common shares.

Proceeds from the private placement will be used for exploration on the Opinaca property.

Based in Ottawa, Beaufield is a gold exploration company.

Sahara increases conversion price on deal

Sahara Energy Ltd. has increased the conversion price on its recently upsized C$1,035,000 private placement of convertible debentures.

The debentures are now convertible into units at C$0.57 each. The units include one share and one warrant, and the warrants are exercisable at C$0.57 each for two years.

The warrants had originally been exercisable at C$0.55 each.

The debentures are now due on Dec. 31, 2007, moved back from Dec. 31, 2008.

The offering was first announced Jan. 4 as a C$900,000 deal but was upsized to the present size on Jan. 9.

Proceeds will be used for the development of the company's oil and gas properties.

On Wednesday, the company's stock gained 20%, or C$0.17, to close at C$1.07 (TSX Venture: SAH) after gains of 13.33% and 41.5% in the two prior trading sessions.

Based in Calgary, Alta., Sahara is an oil and natural gas exploration company.

Westside stock closes up

Westside Energy Corp.'s stock gained 2.74% on Wednesday after completing a $10,325,700 private placement on Tuesday.

The company's stock closed up 10 cents to settle at $3.75 Wednesday (AMEX: WHT) after falling 2.93% a day earlier.

In the private placement, the company sold shares at $3.15 apiece to 27 investors.

Based in Houston, Westside is an oil and natural gas exploration, development, production and acquisition company.

Maverick Oil stock gains 9.7%

Maverick Oil and Gas, Inc.'s stock gained 9.68% on Wednesday after concluding a $20 million PIPE late last week.

The company's stock gained 9 cents to end at $1.02 (OTCBB: MVOG). On Friday, when the deal was closed, the company's stock gained 10.31%.

Maverick sold convertible debentures. The debentures are convertible into common shares at $0.94 each.

Based in Fort Lauderdale, Fla., Maverick Oil and Gas is an oil and natural gas exploration, exploitation, development and production company.

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