Tectonic Metals gets funding for gold exploration in Alaska
The company's Flat gold project is located 40 km north of the giant Donlin gold project.
Canaco Resources Inc. (TSX VENTURE:CAN) (“Canaco” or the “Company”) is pleased to announce it has completed its previously announced bought deal financing for aggregate gross proceeds to Canaco of $119,880,000 and aggregate gross proceeds to SinoTech (Hong Kong) Corporation Limited (“SinoTech”) of $43,200,000. A syndicate of underwriters including Canaccord Genuity Corp. and TD Securities Inc. (the “Underwriters”) purchased an aggregate of 30,200,000 common shares (the “Common Shares”) of the Company, of which 8,000,000 Common Shares were purchased on a secondary basis from SinoTech, at a price of $5.40 per share. The Company has also granted the Underwriters an over-allotment option, exercisable for a period of up to 30 days following the closing, to purchase from the Company up to an additional 3,330,000 Common Shares at a price of $5.40 per share for additional gross proceeds to Canaco of up to $17,982,000.
Following the completion of the financing, SinoTech currently holds 40,000,000 Common Shares, representing approximately 20% of the Company on an undiluted basis.
The securities offered have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the “U.S. Securities Act”) or any U.S. state securities laws, and may not be offered or sold in the United States or to, or for the account or benefit of, United States persons absent registration or any applicable exemption from the registration requirements of the U.S. Securities Act and applicable U.S. state securities laws. This news release shall not constitute an offer to sell or the solicitation of an offer to buy securities in the United States, nor shall there be any sale of these securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.
Canaco also announces a correction to the price of 7,225,000 options granted on December 3, 2010 to certain directors, officers and consultants. The exercise price will be $4.88 per share, rather than $4.56 per share, and the expiry date of December 3, 2015 will remain the same.
About Canaco
Canaco is a Vancouver-based mineral exploration company focused on advanced exploration in Africa. Built on a foundation of experienced management and focused on rapidly advancing exploration projects in Tanzania and Ethiopia, Canaco believes it is well positioned to build shareholder value through discovery and resource development.
