Continental Minerals secures $11.5 million from note deal; Jinshan Gold prices C$9.6 million PIPE

By Sheri Kasprzak

New York, Aug. 25 - As gold prices lifted slightly, powered by higher oil prices, two mineral exploration companies focused on gold led PIPE activity to round out the week.

The first offering came from Continental Minerals Corp., which announced it plans to settle an $11.5 million private placement of secured convertible promissory notes with Taseko Mines Ltd.

The notes bear interest at 16% annually, mature in one year and are convertible at $2.05 each for the first six months and at $2.25 each for the second six months, plus a 5% premium.

For the investment, Taseko may buy up to 50% of any equity or convertible securities offering for up to five years following the closing of the deal.

Proceeds will be used for exploration on the Xietongmen property in Tibet and for working capital.

The company's stock edged up on Friday after the deal was announced in the afternoon, gaining 3.27%, or 5 cents, to close at C$1.58 (TSX Venture: KMK).

Vancouver, B.C.-based Continental is a mineral exploration and development company focused on copper and gold projects in Tibet.

The deal was announced as gold prices crept back up on Friday, thanks to a boost from oil prices. Gold gained $1.20 on the day to close at $621.50 per ounce.

Gold, one sellsider in Vancouver, B.C., said Friday afternoon, was helped along by a slight rise in oil prices.

Oil gained 15 cents to close at $72.51 per barrel.

"For a long time, there was all this speculation that gold was going to $700 [per ounce]," he said. "But I think it's okay here. This is a good enough level to still draw interest and so we are seeing some more offerings."

Jinshan plans unit offering

In other gold news, Jinshan Gold Mines Inc. announced plans Friday to raise up to C$9.6 million in a private placement of units.

The non-brokered placement includes up to 8 million units at C$1.20 each.

The units include one share and one half-share warrant with each whole warrant is exercisable at C$1.45 for 18 months.

Proceeds will be used for the development and construction of the company's Chang Shan Hao open-pit gold mine in China and for general corporate purposes.

On Friday, the company's stock remained unchanged at C$1.23 (TSX Venture: JIN).

Jinshan conducted a similar offering in December 2005, selling 30 million units for proceeds of C$15 million. In that deal, the units included one share and one half-share warrant with each warrant exercisable at C$0.70 for 18 months. Dundee Securities Corp. led a syndicate of agents placing the deal.

When the offering closed Dec. 19, the stock closed at C$0.56.

Jinshan, based in Vancouver, is a gold exploration and development company.

Applied Digital raises $13.5 million

Looking to the tech sector, Applied Digital Solutions, Inc. closed a $13.5 million private placement of term notes with warrants Friday.

Laurus Master Fund, Ltd. bought the 12% notes. The notes mature due Aug. 24, 2009 and included warrants for 1,719,745 shares, exercisable at $1.88 each through Aug. 24, 2013.

The note may be redeemed at 102% of principal plus interest.

Proceeds from the deal will be used to repay all the outstanding obligations under a $12 million note issued to Satellite Senior Income Fund, LLC on Dec. 28, 2005.

On Friday, the stock gained 1.23%, or 2 cents, to close at $1.65, gaining another 6 cents in after-hours trading (Nasdaq: ADSX).

Applied Digital Solutions, based in Delray Beach, Fla., develops a chip that, when inserted under the skin, can check patient vital signs.

ADF to raise C$3.22 million

Moving back to Canadian offerings, ADF Group Inc. said it will close a private placement of stock with two investment funds for C$3,225,001.

The company intends to sell 2,480,770 shares at C$1.30 each in the deal, which is slated to close by Aug. 31.

"The proceeds of this proposed offering will increase the company's working capital and will be used for general corporate purposes," said Jean Paschini, the company's chief executive officer, in a statement release Friday morning.

The company's stock closed out the session Friday up 1.64%, or 2 cents, to end at C$1.24 (Toronto: DRX).

Once the offering closes, the company will have 16,500,583 outstanding common shares.

ADF, based in Terrebonne, Quebec, ADF designs and installs steel superstructures.

Worldbid's stock edges up

A day after posting a 16.98% increase in its stock, Worldbid Corp.'s stock continued to climb, albeit not by quite as much, Friday.

The stock gained 1.67% Friday, or 5 cents, to end at $3.15 (OTCBB: WBDC) after announcing the pricing terms of a $22.5 million private placement and its plans to acquire Royalite Petroleum Corp.

On Thursday, the stock gained 45 cents to close at $3.10.

Under the merger terms, Royalite's shareholders will receive one share of Worldbid for every Royalite share.

In the connected private placement, the company plans to sell units of one share and one half-share warrant at $1.50 each.

The whole warrants are exercisable for one year at $1.75 each.

The proceeds will be used to fund the operations of Royalite, including drilling and land lease costs.

The company closed a separate private placement for $2,610,150 on Thursday. In that offering, the company issued units of one share and one half-share warrant at $0.75 each.

Based in Blaine, Wash., Worldbid operates an online auction site used for business-to-business product trades.

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