Arcan Resources Ltd.
TSX VENTURE : ARN

Arcan Resources Ltd.

September 27, 2007 11:15 ET

Arcan Announces Closing of CDN$10.4 Million Private Placement

CALGARY, ALBERTA--(Marketwire - Sept. 27, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

Arcan Resources Ltd. ("Arcan") (TSX VENTURE:ARN) reports that the private placement offering of common shares announced on September 11, 2007 has closed. An aggregate of 2,700,000 common shares were sold in the offering, including 1,500,000 common shares at a price of $3.45 per share, and 1,200,000 common shares of Arcan issued on a "flow-through" basis under the Income Tax Act (Canada) (the "Tax Act") at a price of $4.35 per share, for aggregate gross proceeds of $10,395,000. The shares were sold on an underwritten private placement basis by a syndicate of underwriters led by FirstEnergy Capital Corp. and including Cormark Securities Inc., Paradigm Capital Inc., Blackmont Capital Inc. and Wellington West Capital Markets Inc. Upon the closing of the offering, there are 36,470,995 common shares of Arcan issued and outstanding.

Arcan plans to use the net proceeds from the private placement to fund Arcan's ongoing capital expenditure program and for general corporate purposes. Arcan has agreed to make expenditures qualifying as "Canadian exploration expenses" under the Tax Act on or before December 31, 2008 in an amount equal to the aggregate subscription proceeds of the flow-through common shares, and to renounce the Canadian exploration expenses to the purchasers of the flow-through shares effective December 31, 2007.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy any of the common shares in the United States. The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended, or any state securities laws, and may not be offered or sold in the United States without registration under the united States Securities Act of 1933, as amended, and all applicable state securities laws, or an exemption therefrom.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Arcan Resources Ltd.
    Ed Gilmet
    President and Chief Executive Officer
    (403) 262-0321
    Email: egilmet@arcanres.com
    or
    Arcan Resources Ltd.
    Douglas Penner
    Vice President, Finance and Chief Financial Officer
    (403) 262-0321
    Email: dpenner@arcanres.com
    or
    Arcan Resources Ltd.
    Suite 3200, 450 - 1st Street S.W.
    Calgary, AB T2P 5H1
    (403) 262-0321
    (403) 262-4636 (FAX)