🕐27.05.10 - 20:46 Uhr
Gold Canyon to Undertake $2,000,000 Private Placement Offering of Flow-Through Units
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Re: News Release - Thursday, May 27, 2010
Gold Canyon to Undertake $2,000,000 Private Placement Offering of
Flow-Through Units
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Gold Canyon Resources Inc.
(GCU: TSX-V) ("Gold Canyon" or "the
Company") announces that it is undertaking a private placement offering
of up to 6,250,000 flow-through share units (the "Units") at a
subscription price of (Cdn)$0.32 per Unit for gross proceeds of up to
(Cdn)$2,000,000.
Each Unit consists of one "flow-through" common share
in the capital of the Company and one-half of one transferable common
share purchase warrant, each whole warrant entitling the holder to
acquire one additional common share at a price of (Cdn)$0.42 per share
for twenty-four (24) months from the date of issuance.
In connection
with the flow-through offering the Company has agreed to pay a finders
fee in cash of 8% of the proceeds raised from participating subscribers
introduced to the Company by such registrants.
The anticipated proceeds of the flow-through offering will be used for
eligible Canadian Exploration Expenses ("CEE") as defined in subsection
66.1(6) of the Income Tax Act (Canada) on Gold Canyons Springpole Gold
Project in the Red Lake Mining District of Ontario, Canada.
Completion of this proposed private placement will be subject to the
negotiation, execution and delivery of definitive subscription
agreements, TSX Venture Exchange acceptance of the proposed subscribers
and documentation related to the offering.
Any securities to be issued
with will be subject to a hold period of four months from the closing
date in accordance with the rules and policies of the TSX Venture
Exchange and applicable Canadian securities laws.
About Gold Canyon Resources Inc.:
Gold Canyon is engaged in the acquisition and exploration of mineral
and precious metals properties.
The Company controls a 100% interest in
the Springpole Gold - Horseshoe Island Gold, Platinum, Palladium
Project and Favourable Lake Poly-metallic property currently under
option to Shoreham Resources Inc.
pursuant to an option and joint
venture agreement entered into in December 2005 - all in the Red Lake
Mining District of Ontario, Canada.
Through its wholly owned U.S.
subsidiary, Gold Canyon Resources USA
Inc., the Company controls a 100% interest in the Cordero Gallium
Project situated in Humboldt County, Nevada, U.S.A.
Gold Canyon entered into a Joint Exploration Agreement with the Japan
Oil, Gas and Metals National Corporation (JOGMEC) in January 2009.
Additional information can be found on the Companys website:
www.goldcanyon.ca
Akiko Levinson,
President & Director
For further information, please contact:
Tel: (604) 682-3234 Toll free: 1 (888) 242-3234 Fax: (604) 682-0537
Investor Relations: Leo Karabelas, Tel: (416) 543-3120 Email:
Certain statements contained in this news release using the terms
"may", "expects to", "project", "estimate", "plans", and other terms
denoting future possibilities, are forward-looking statements in
respect to various issues including upcoming events based upon current
expectations which involve risks and uncertainties that could cause
actual outcomes and results to differ materially.
The future conduct of
the Companys business and the feasibility of its mineral exploration
properties are dependent upon a number of factors and there can be no
assurance that the Company will be able to conduct its operations as
contemplated and the accuracy of these statements cannot be guaranteed
as they are subject to a variety of risks that are beyond our ability
to predict or control and which may cause actual results to differ
materially from the projections or estimates contained herein.
The
risks include, but are not limited to, the risks described in the above
press release; those risks set out in the companys disclosure
documents and its annual, quarterly and current reports; the fact that
exploration activities seldom result in the discovery of a commercially
viable mineral resource and are also significant amounts of capital to
undertake and the other risks associated with start-up mineral
exploration operations with insufficient liquidity, and no historical
profitability.
The Company disclaims any obligation to revise any
forward looking statements as a result of information received after
the fact or regarding future events.
This news release does not constitute an offer to sell or a
solicitation of an offer to buy any of the securities in the United
States.
The securities of the Company have not been registered under
the United States Securities Act of 1933, as amended (the "U.S.
Securities Act") or any state securities laws and may not be offered or
sold within the United States or to U.S.
Persons unless registered
under the U.S.
Securities Act and applicable state securities laws or
an exemption from such registration is available.
Neither the 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 news
release.
Associated File:
http://www.goldcanyon.ca/i/pdf/gcu-news-2010-0527-1.pdf
20 KB in size, approx.
5 seconds to download at 56.6Kbps
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Copyright (c) 2010 GOLD CANYON RESOURCES INC.
(GCU) All rights
reserved.
For more information visit our website at
http://www.goldcanyon.ca/ or send mailto:
Message sent on Thu May 27, 2010 at 11:35:02 AM Pacific Time
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