🕐10.11.09 - 01:42 Uhr

Canada Gold Finalizes $1,155,000 Private Placement



PRESS RELEASE
tsx.v: CI, Frankfurt: T9N, otc-bb: CNGZF November 9, 2009


CANADA GOLD Finalizes $1,155,000 Private Placement

 

Vancouver, British Columbia - November 9, 2009: Vancouver, British Columbia - Canada Gold Corporation (TSXV: CI, Frankfurt: T9N, OTC-BB: CNGZF) (the "Company") announces it has finalized the non-brokered private placement announced September 3, 2009 for a total of CAD $1,155,000 through the sale of 3,500,000 units of the Company at $0.33 per unit.

Each unit is comprised of one common share and one-half of one non-transferable share purchase warrant of the Company.

Each warrant entitles the holder to acquire one additional common share of the Company for a period of two years from the closing of this tranche, at an exercise price of $0.50 during the first year and at an exercise price of $0.65 during the second year.

The Company may accelerate the expiry date of the warrants if the daily volume weighted average trading price of the common shares of the Company on the TSX Venture Exchange equals or exceeds $0.80 for 30 consecutive trading days, in which event the warrants will expire on the date that is 30 days after the date that the Company provides notice to the holders.

The common shares underlying the units and the common shares underlying the warrants, if the warrants are exercised, will be subject to a four month hold period.

In connection with the private placement, the Company paid a cash finder"s fee.

The proceeds from the private placement will be used for ongoing development work related to establishing an initial ore processing plant in Peru and for general working capital.

The above placement is expected to close shortly and both the placement and the applicable finders fees are subject to final TSX Venture Exchange approval.

About Canada Gold

Canada Gold has been formed for the express purpose of developing toll ore processing facilities in small-scale (artisanal) mining communities.

By providing local miners with access to advanced ore processing techniques, the Company"s toll processing model seeks to assist these mining communities establish sustainable socio-economic standards by encouraging entrepreneurship, curtailing health and safety risks, improving access to education and equipment, reducing environmental degradation, and minimizing the pressures contributing to child labor.

Local communities are showing strong support for the project as they understand the local social and economic benefits of having a modern processing facility located within their existing mining areas.

Regional and Federal regulators have also voiced strong support for the project.

The Canada Gold facility will provide an alternative processing option to the numerous small unregulated mercury amalgamation plants in the area and the associated health and environmental impacts accruing from these small scale processing activities.

The start-up and commissioning of Canada Gold"s first processing plant in northern Peru is scheduled for late 2010.

About Artisanal Small Scale Mining

Much of the developing world possesses significant informal artisanal small scale mining communities, often characterized by low health, safety and environmental standards, but also significant social and economic influence.

The organization of Communities and Small Scale Mining ("CASM") suggests between 13 and 20 million men, women, and children from over 50 developing countries are active in small scale activities, with 100 million more dependent on this sector for their livelihood.

For more information, please contact the office or visit www.canadagold.com.



On Behalf of the Board,

"Dave McMillan"

Dave McMillan
Executive Chairman
Canada Gold Corporation

Chad McMillan
Vice President, Communications
(604) 685-5851 or Toll Free: (888) 685-5851
Fax: (604) 685-7349

 




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