Canaco Resources Inc.

Canaco Resources Inc.

May 25, 2006 15:40 ET

Canaco Closes on $1,100,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - May 25, 2006) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce that the Company has closed on its non-brokered private placement of $1,100,000 previously announced on April 7, 2006. The Company issued a total of 2,000,000 units at $0.55 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. One full warrant entitles the holder to acquire one common share at $0.70 per share. These warrants will expire on May 24, 2007. The expiry date will be accelerated if, after September 26, 2006, the Company's closing price is greater than $1.25 for a period of 20 consecutive trading days, and the warrants will expire 30 days after the Company gives notice to the warrantholders.

The 2,000,000 shares issued and any shares issued upon exercise of the warrants are subject to a four-month hold period expiring on September 26, 2006.

The Company paid $6,930 cash finder's fee to a corporate entity who is at arm's length to the Company.

The funds received will be applied toward the Company's operations, exploration, acquisition and development of mineral prospects as well as general and administrative purposes.

The Company plans to close on the $2 million brokered financing in 2 weeks time, upon its receipt of the appropriate documentation.

The Company relies on litigation protection for "forward-looking" statements.

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

Contact Information

  • Canaco Resources Inc.
    Andrew Lee Smith
    Chairman & CEO
    (604) 488-0822 or 1-866-488-0822
    Canaco Resources Inc.
    Nick Watters
    Investor Relations
    (604) 488-0822 or 1-866-488-0822