Cangold Closes Private Placement Oversubscribed
June 13 2014 - 1:19PM
Marketwired
Cangold Closes Private Placement Oversubscribed
VANCOUVER, BRITISH COLUMBIA--(Marketwired - Jun 13, 2014) -
CANGOLD LIMITED (TSX-VENTURE:CLD) (the "Company") reports that it
has closed its previously announced non-brokered private placement
financing (the "Private Placement"). On closing, the Company issued
8,500,000 units at $0.10 per unit for gross proceeds of $850,000.
Each unit comprises one common share and one-half of one
non-transferable share purchase warrant.
Each full warrant entitles the holder to acquire, upon exercise,
one additional common share of the Company at a price of $0.18
until June 12, 2015, provided, however, that should the closing
price of the common shares on the TSX Venture Exchange (the
"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.
The Company paid cash finders' fees totaling $26,984 and issued
269,842 finders' warrants. The finders' warrants have the same
attributes as the warrants above described. All securities issued
and issuable under the Private Placement are subject to a hold
period expiring on October 13, 2014.
The Private Placement is subject to the final approval of the
Exchange and, as such, all securities issued and funds received are
being held in trust pending final receipt of Exchange approval.
As previously announced, the Company has signed a formal
agreement whereby Cangold has been 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. Upon final 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 has submitted a report to the Exchange in order to
classify the estimate as a current mineral resource for Cangold, as
per National Instrument 43-101 requirements, but until the report
receives final Exchange approval, Cangold is considering the
resource in the PEA to be an historical estimate.
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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