Toreador secures $45 million from stock sale; gold offerings dominate PIPE market

By Sheri Kasprzak

New York, March 22 - Toreador Resources Corp. headed up an active day for private placements a day after the stock market crept higher. Elsewhere in the market, gold companies grabbed headlines with several offerings in the pipeline.

The gold offerings, according to one sellside market source, are coming in thanks to a surge in gold prices sparked by higher oil prices.

"Oil prices are kind of triggering the whole thing, which means probably more deals coming from energy companies as well, but we're seeing loads of gold coming in this week," the source said.

Oil prices jumped $2.08 Thursday to settle at $61.69 per barrel, and gold prices put on $4.40 to end the session at $663.40 per ounce.

Moving to oil offerings, Toreador said it has agreed to sell 2,710,843 shares at $16.60 each to six institutional investors for proceeds of $45 million.

The share price is a 17.5% discount to the volume weighted average share price from Wednesday.

The company's stock gave up 21 cents to end the day at $20.29 (Nasdaq: TRGL) and another 6 cents in after-hours trading.

The investors in the placement also will receive warrants for 489,155 shares, exercisable at $16.60 each for 30 days beginning on the closing date.

The offering is set to close Friday.

Proceeds will be used for exploration and development.

Merrill Lynch & Co., Inc. is the placement agent.

Dallas-based Toreador is an oil and natural gas exploration, acquisition, development and production company.

Ridgeway prices units

In other oil offerings, Ridgeway Petroleum Corp. negotiated the terms of a C$5 million private placement.

News of the deal sent the company's stock down 9.62%, or 25 cents, to settle at C$2.35 (TSX Venture: RGW).

The non-brokered deals includes up to 2.5 million units of one share and one half-share warrant. Each whole warrant is exercisable at C$3.00 for one year.

Proceeds will be used for ongoing drilling at the company's St. Johns Helium/CO2 project, potential oilfield acquisitions and working capital.

Houston-based Ridgeway is an oil and natural gas exploration company focused on properties in Arizona and New Mexico.

Gold offerings abound

Looking back to those gold deals, Colombia Goldfields, Inc. announced the completion of a $9.02 million stock deal at $1.00 per share.

The investors also received warrants for 541,200 shares, exercisable at $1.00 each for three years.

Colombia's stock fell 3.2%, or 4 cents, to settle at $1.21 (OTCBB: CGDF).

"This financing will allow us to advance the Marmato project, including purchase of the remaining concessions and preparation for a revised resource estimate," said J. Randy Martin, the company's chief executive officer, in a news release.

"It will also provide working capital for the company as we evaluate our future financing options and work toward obtaining a listing on a major North American stock exchange."

Colombia, based in Toronto, is a gold exploration company.

Elsewhere in the sector, Tara Gold Resources Corp. wrapped an offering of shares for $2,519,600 for subsidiary Tara Minerals Corp.

Tara's stock jumped 17.35%, or 17 cents, to end the day at $1.15 (Pink Sheets: TRGD).

The company issued 5,039,200 shares at $0.50 apiece.

Proceeds will be used to advance the company's projects.

Based in Chicago, Tara is a gold and precious metals exploration company.

Another gold company, Jaguar Mining Inc., settled a private placement of units for C$86.25 million, including the greenshoe.

The company issued a total of 86,250 units of C$1,000 in principal of 10.5% secured notes and warrants for 25 common shares.

A syndicate of underwriters led by TD Securities Inc. exercised the over-allotment option for another 16,500 units.

The company's stock gained 14 cents to close at C$6.10 (Toronto: JAG).

Jaguar is based in Concord, N.H.

Earlier this week, Golden Goose Resources Inc. priced a C$3.1 million offering of units and flow-through shares.

The deal includes up to C$2 million in units of one share and one half-share warrant at C$0.70 each and up to C$1.1 million in flow-through shares at C$0.75 each.

Proceeds will be used for drilling on the company's Magino property.

On Thursday, the company's stock gained 5 cents to end at C$0.80 (TSX Venture: GGR).

Golden Goose is based in Montreal.

Bullion River stock climbs

A day after announcing the completion of two private placements, Bullion River Gold Corp.'s stock edged its way upward.

The stock gained 3 cents Thursday to settle at $0.68, a 4.62% increase (OTCBB: BLRV). On Wednesday, the company's stock also gained 3 cents to end at $0.65.

In one offering, Bullion River sold units of one share and one warrant at $0.75 each.

In the debentures deal, the company sold 10% debentures to Elton Participation Corp. The notes, due Sept. 12, 2007, are convertible at $0.75 each. The investor also received warrants for 1,333,334 shares, exercisable at $1.00 each for two years.

The company also announced that is has purchased two new crushers that are expected to increase mill capacity to 250 tons per day.

Bullion River, based in Reno, Nev., is a gold and silver mining company.

Electroglas to close deal

In other PIPE news, Electroglas, Inc. said it intends to settle a convertible notes offering for $25.75 million.

The 6.25% notes due 2027 are convertible into common shares at $2.295 each, a 12.5% premium to the company's closing stock price on Wednesday of $2.04.

The deal is set to close Monday.

Proceeds will be used to repay $8.5 million in bonds outstanding due June 15, 2007. The rest will be used for working capital and general corporate purposes.

Piper Jaffray & Co. was the placement agent.

The company's stock climbed 8 cents to close at $2.12 and gained another 3.4 cents in after-hours trading (Nasdaq: EGLS).

Located in San Jose, Calif., Electroglas develops semiconductor wafer probers, develops test floor management software and provides services to the semiconductor-manufacturing sector.

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