Cangold Announces Non-Brokered Financing
February 24 2014 - 7:00AM
Marketwired
Cangold Announces Non-Brokered Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Feb 24, 2014) -
CANGOLD LIMITED (TSX-VENTURE:CLD) (the "Company") announces a
non-brokered private placement of up to 5,000,000 units with each
unit comprising one common share and one half warrant at a price of
$0.15 per unit, for gross proceeds of up to $750,000. Each full
warrant will be exercisable for one common share of the Company at
a price of $0.25 for a period of one year from the date of issue
provided, however, that should the closing price of the common
shares on the TSX Venture Exchange be at least $0.33 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.
As previously announced, the Company has signed a Letter of
Intent whereby Cangold will be granted an option to acquire from
Vista Gold Corp. ("Vista"), up to a 100% interest (subject to
certain underlying royalties) in the mining rights to the Guadalupe
de los Reyes Project in Sinaloa, Mexico. Subject to the signing of
a definitive option agreement between the Company and Vista and
receipt of TSX Venture Exchange approval therefor, the net proceeds
of the placement will be used to make option payments, for initial
work on the project, and for general working capital.
The Guadalupe de los Reyes Project comprises 6,302 hectares,
covering a past-producing district dating back to 1772. A
Preliminary Economic Assessment ("PEA") carried out on the project
by Tetra Tech for Vista on March 4, 2013 estimated an Indicated
resource of 6.8 million tonnes at a grade of 1.73g/t gold and
28.71g/t silver (380,100 oz gold and 6,315,300 oz silver) as well
as an Inferred resource of 3.2 million tonnes at a grade of 1.49g/t
gold and 34.87g/t silver (155,200 oz gold and 3,639,000 oz silver)
at a cut-off grade of 0.50 g Au per tonne.
Cangold is considering the resource in the PEA to be an
historical estimate as Cangold's qualified person has not done
sufficient work to classify the estimate as a current mineral
resource for Cangold, as per National Instrument 43-101
requirements.
Robert Brown, P. Eng., Director and VP Exploration for Cangold
is the Qualified Person for the Company. He has reviewed the
technical information referenced above and has approved this news
release.
Cangold Limited is a junior exploration company engaged in the
exploration and development of gold projects in Mexico and Canada.
The Company owns a 100% interest in the past-producing Argosy Gold
Mine in northwestern Ontario and the prospective Plomo Gold Project
in Sonora State, Mexico.
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.
Cangold LimitedErick Bertsch604 638 8967604 608
1768info@cangold.cawww.cangold.ca
(TSXV:CLD)
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