$10 Million Bought Deal with Cormark!!!and best thing is NO WARRANTS!!!!!!!!!!!!! YA bababay yayaya
April 20, 2011 08:10 ET
Gold Canyon Announces $10 Million Bought Deal Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 20, 2011) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN
Gold Canyon Resources Inc. (TSX VENTURE:GCU) ("Gold Canyon" or "the Company") is pleased to announce that it has entered into an agreement with a syndicate of underwriters led by Cormark Securities Inc. and Fraser Mackenzie Limited (the "Underwriters") pursuant to which the Underwriters have agreed to purchase, on a bought deal private placement basis, 1,370,000 flow-through shares of Gold Canyon ("FT Shares") at a price of $3.65 per FT Share and 1,640,000 common shares of Gold Canyon ("Common Shares") at $3.05 per Common Share for aggregate gross proceeds in the amount of approximately $10 million (the "Offering").
The offering is scheduled to close on or about May 11, 2011 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals including the approval of the TSX Venture Exchange.
The proceeds from the sale of the Common Shares will be used for further exploration and development of the Company's Springpole Gold Project in Ontario and for general corporate purposes.
The proceeds from the sale of the FT Shares will be used to incur Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada), which will qualify as "flow-through mining expenditures" for purposes of the Income Tax Act (Canada), related to the exploration of the Company's Canadian exploration projects. The Corporation will renounce such Canadian Exploration Expenses with an effective date of no later than December 31, 2011 for federal tax purposes.
The securities described herein have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States unless registered under the Act or unless an exemption from registration is available.