GlobeinvestorGOLD.com Company News Alert for Channel Resources
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Channel Resources Announces $5 Million Bought Deal Private Placement
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 8, 2011) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES.
ChannelResources Ltd. ("Channel" or the "Company") (TSX VENTURE:CHU) ispleased to announce that it has entered into an agreement withWellington West Capital Markets Inc. (the "Underwriter") to sell14,710,000 units (the "Units") at a price of
.34 per Unit to raiseaggregate gross proceeds of up to $5,001,400 on a "bought deal", privateplacement basis (the "Offering"). Each Unit will consist of one commonshare of Channel and one-half of one common share purchase warrant (eachwhole warrant, a "Warrant"). Each Warrant will entitle the holderthereof to purchase one common share of Channel (a "Warrant Share") at aprice of
.50 per Warrant Share for 24 months following the closing ofthe Offering.
Channel will also grant tothe Underwriter an option, exercisable at any time up to 48 hours priorto the closing of the Offering, to purchase up to 7,355,000 additionalUnits of Channel at a price of
.34 per Unit for additional grossproceeds to the Company of up to $2,500,700.
Channelplans to use the net proceeds from the Offering to advance theCompany's Tanlouka Gold Project in Burkina Faso, and for generalcorporate purposes.
The Offering is scheduledto close on or about May 6, 2011 and is subject to certain conditionstypical for a transaction of this nature and the receipt of allnecessary regulatory approvals, including the approval of the TSXVenture Exchange.
The common shares andwarrants comprising the Units to be issued pursuant to the Offering willbe subject to a four-month restricted resale period, such period tocommence upon the closing of the Offering.
Thisnews release is not an offer of Units for sale in the United States.The Common Shares and Warrants have not been and will not be registeredunder the U.S. Securities Act of 1933, as amended, and may not beoffered or sold in the United States absent registration or anapplicable exemption from registration.
About Channel Resources Ltd.
ChannelResources Ltd. is a Canadian TSX.V listed mineral exploration Companywhich has an option to earn a 90% interest in the Tanlouka Gold Projectin Burkina Faso, West Africa, the terms of which the Company has alreadysatisfied, and an option to earn 100% in the Fox Creek Lithium / PotashBrine Project in Alberta. At Tanlouka, Channel has recently discoveredmultiple mineralized zones that are now being explored and expandedthrough a 10,000 metre reverse circulation drilling program. At FoxCreek, a bulk sample of brine sourced from producing natural gas wellsis undergoing process testing to determine the most efficient method ofproducing various industrial minerals from the brine, including lithiumcarbonate, potash, bromine and borates. The Company is financed toadvance both projects through their current programs, and is activelysearching for additional opportunities to expand its project portfolio.
Some of the statements contained herein areforward-looking statements which involve known and unknown risks anduncertainties. Without limitation, statements regarding potentialmineralization and resources, exploration results, and future plans andobjectives of the Company are forward looking statements that involvevarious degrees of risk. The following are important factors that couldcause the Company's actual results to differ materially from thoseexpressed or implied by such forward looking statements: changes in theprice of minerals, general market conditions, risks inherent in mineralexploration, risks associated with development, construction and miningoperations, the uncertainty of future profitability and the uncertaintyof access to additional capital. The Company undertakes no obligation toupdate publicly or otherwise revise any forward-looking statements orthe foregoing list of factors, whether as a result of new information orfuture events or otherwise. Further disclosure on risk factors isavailable in the Company's various corporate filings at
www.sedar.com.
FOR FURTHER INFORMATION PLEASE CONTACT: Colin McAleenan
Channel Resources Ltd.
President & CEO
604.684.7098
ORCyrus Ameli
Channel Resources Ltd.
CFO & VP Corporate Affairs
604.684.7098
info@channelresources.ca
www.channelresources.ca