Canaco Resources plans to raise $2.27-million
2009-03-30 14:21 ET - News Release
Mr. Andrew Smith reports
CANACO ANNOUNCES $2,270,000 FINANCING
Canaco Resources Inc. intends to proceed with a non-brokered privateplacement for $2.27-million through the sale of units at five cents perunit. It plans to sell up to 45.4 million units and each unit willconsist of one common share and one-half of one common share purchasewarrant. One full warrant will entitle the holder to acquire one commonshare at seven cents per share in the first year and 10 cents per sharein the second year. The warrants will expire two years from closing.
The lead subscriber to the private placement is SinoTech (HongKong) Corporation Ltd., which has agreed to subscribe for 32 millionunits of the offering conditional on TSX Venture Exchange andshareholder approval. The parent company of SinoTech is SinoTex MineralExploration Co. Ltd., a major Chinese exploration and mine developmentcompany, with operations in mainland China and international operationsin more than 10 countries worldwide. This subscription is also subjectto approval by Canaco's directors. Directors are meeting on Wednesday,April 1, 2009, and Canaco will issue a news release after the directorsmeeting.
Two directors of the company may subscribe for 400,000 units. Canaco may pay a finders' fee in cash and/or units.
The proceeds of the private placement will be used toward general working capital project generation and exploration costs.
The private placement is subject to certain conditions,including, but not limited to, satisfactory due diligence and thereceipt of all necessary approvals, including the approval of the TSXVenture Exchange.
We seek Safe Harbor.