Cangold Closes First Tranche of Private Placement
July 18 2011 - 6:06PM
Marketwired
CANGOLD LIMITED (TSX VENTURE: CLD) (the "Company") reports that it
has closed the first tranche of its non-brokered private placement
financing announced on April 26, 2011. On closing, the Company
issued 5,192,000 units at $0.50 per unit for gross proceeds of
$2,596,000. Each unit comprises one common share and one-half of
one non-transferable Series Q share purchase warrant.
Each full Series Q share purchase warrant entitles the holder to
acquire, upon exercise, one additional common share of the Company
until July 13, 2012 at a price of $0.75, provided, however, that
should the closing price of the common shares on the TSX Venture
Exchange be at least $1.00 per share for 10 consecutive trading
days (at any time at or following the expiry of the four month
resale restriction period), the Company may, by notice to the
holder (supplemented by a news release of general dissemination)
reduce the remaining exercise period applicable to the warrants to
not less than 30 days from the date of such notice.
The Company paid cash finders' fees totaling $24,053 and issued
37,400 finders' warrants. The finders' warrants have the same
attributes as the warrants above described. All securities issued
and issuable under the first tranche of this private placement are
subject to a hold period expiring November 14, 2011.
$1,450,000 of the proceeds from this first tranche will be used
for general corporate purposes and working capital. The balance of
the proceeds from this tranche and subsequent tranches will be
applied toward property acquisition investigations, provided that
if the option to acquire an indirect 75% interest in the Ixhuatan
Project as described in the Company's news release dated April 26,
2011 closes, such amount shall be used to make the initial payment
and fund an exploration program.
Cangold has completed an updated NI 43-101 report on the project
that has been approved by the TSX Venture Exchange. A draft
Information Circular in accordance with Form 3D1 of the TSX Venture
Exchange Corporate Finance Manual has been prepared and submitted
to the TSX Venture Exchange for approval. Once approved, it will be
sent to shareholders to vote on the proposed transaction. The
shareholders' meeting has been set for August 29, 2011. Due to the
time required for this process, Cangold and Brigus have agreed to a
60 day extension, to August 30, 2011, within which to sign the
formal option agreement, and have signed a letter to that
effect.
Cangold Limited is a junior exploration company engaged in the
exploration and development of gold projects in Mexico and
Canada.
ON BEHALF OF THE BOARD
Robert A. Archer, P. Geo., President & CEO
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: B&D Capital 604 685 6465 604 899 4303 (FAX)
info@cangold.ca www.cangold.ca