Cangold Re-Prices Non-Brokered Financing
April 22 2014 - 5:44PM
Marketwired
Cangold Re-Prices Non-Brokered Financing
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Apr 22, 2014) -
CANGOLD LIMITED (TSX-VENTURE:CLD) (the "Company") announces that it
is amending the pricing of the non-brokered private placement
announced on February 24, 2014. Due to softening market conditions,
the financing will now consist of up to 7,500,000 units at a price
of $0.10 per unit with each unit comprising one common share and
one half warrant, 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 $0.18 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 $0.25 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 formal option
agreement 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 receipt of
TSX Venture Exchange approval, 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's primary focus is advancing the Guadalupe de los Reyes
Gold-Silver Project in Sinaloa, Mexico towards the pre-feasibility
stage. The Company also 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
Cangold LimitedErick Bertsch604 638 8967604 608
1768info@cangold.cawww.cangold.ca
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