Canyon Resources Announces $4.95 Million Private Placement
25 Mai 2007 - 9:27PM
PR Newswire (US)
GOLDEN, Colo., May 25 /PRNewswire-FirstCall/ -- Canyon Resources
Corporation (AMEX:CAU), a Colorado-based mining company, today
announced that it has closed a private placement with a group of
accredited investors in the aggregate principal amount of $4.95
million with net proceeds to the Company of approximately $4.7
million. The private placement consisted of the sale of
approximately 8.82 million shares of the Company's common stock,
2.21 million Series A Warrants with an exercise price of $0.640 and
a term of one year from registration effectiveness, and 6.62
million Series B Warrants with an exercise price of $0.704 and a
term of four years from closing. The Series A warrant has a
redemption feature whereby the Series A Warrants can be redeemed by
the Company beginning six months from the closing date, if the
price of the Company's common stock exceeds $0.80 for a period of
10 consecutive trading days. The transaction was priced at $0.561
per share, representing a 10 percent discount to the 10 day volume
weighted average of the closing price prior to pricing. In
connection with the financing, the Company will pay a cash
placement agent fee of approximately $0.2 million and 1.32 million
warrants. The broker warrants are at the same terms as the
investors warrants. The Company must file a registration statement
with the SEC within 45 days of the closing date to register for
resale the securities related to this transaction. "The use of
proceeds from this transaction are targeted for development and
exploration work at our Briggs Mine in California, ongoing
permitting and feasibility work at our Reward Project near Beatty,
Nevada and for general corporate purposes. We plan to supplement
this financing with the sale of certain property and equipment
assets as the market allows. Other mineral property assets may be
offered for joint venture to offset holding costs and to add value
to those assets. This funding will allow us to focus on the
development of our key growth and cash flow opportunities.
Offsetting the impacts of this financing on our capital structure
will be the expiration of 2.2 million existing warrants on June 1,
2007," states James Hesketh, President & CEO The securities
offered in the private placement have not been registered under the
Securities Act of 1933 or any state securities laws, and unless so
registered may not be offered or sold in the United States, except
pursuant to an exemption from, or in a transaction subject to, the
registration requirements of the Securities Act of 1933 and
applicable state securities laws. This press release is issued
pursuant to Rule 135c of the Securities Act of 1933, this press
release does not constitute an offer to sell, or the solicitation
of an offer to buy, nor shall there be any sale of the shares of
common stock or warrants in any jurisdiction in which such offer,
solicitation or sale would be unlawful prior to registration or
qualification under the securities laws of any such jurisdiction.
This press release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended
and Section 21E of the Securities Exchange Act of 1934 as amended.
Such forward looking statements include, among others, feasibility
studies for the Briggs and Reward Projects, mineralized material
estimates, drilling capability and the potential reopening or
expansion of the Briggs Mine. Factors that could cause actual
results to differ materially from these forward-looking statements
include, among others: the volatility of gold prices; potential
operating risks of mining, development and expansion; the
uncertainty of estimates of mineralized material and gold deposits;
and environmental and governmental regulations; availability of
financing; the outcome of litigation, as well as judicial
proceedings and force majeure events and other risk factors as
described from time to time in the Company's filings with the
Securities and Exchange Commission. Most of these factors are
beyond the Company's ability to control or predict. FOR FURTHER
INFORMATION, CONTACT: James Hesketh, President & CEO or Valerie
Kimball, Investor Relations (303) 278-8464 (303) 278-8464
DATASOURCE: Canyon Resources Corporation CONTACT: James Hesketh,
President & CEO, +1-303-278-8464, or Valerie Kimball, Investor
Relations, +1-303-278-8464, both of Canyon Resources Corporation
Web site: http://www.canyonresources.com/
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