Mr. Akiko Levinson reports
GOLD CANYON ANNOUNCES $10 MILLION BOUGHT DEAL PRIVATE PLACEMENT
Gold Canyon Resources Inc. has entered into an agreement with a syndicate of underwriters led by CIBC and Frazer Mackenzie Ltd. pursuant to which the underwriters have agreed to purchase 1.3 million common shares of Gold Canyon at $2.35 per common share and 2.5 million flow-through shares of Gold Canyon at a price of $2.80 per FT share on a bought deal private placement basis, for gross proceeds in the amount of approximately $10-million. The underwriters have been granted the option to purchase up to an additional $5-million of either common shares or FT shares at any point up until 48 hours prior to closing of the offering.
The offering is scheduled to close on or about Nov. 3, 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 Dec. 31, 2011, for federal tax purposes.
We seek Safe Harbor.