Canaco Resources Inc.

Canaco Resources Inc.

December 15, 2009 16:46 ET

Canaco Closes on Final Tranche of $5,367,320 Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 15, 2009) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce that the Company has closed on its final tranche of private placement previously announced on November 18, 2009. The Company today closed on an additional $2,448,320 and issued an additional 6,995,200 units at $0.35 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 $0.45 per share in the first year and $0.75 per share in the second year. These warrants will expire on December 15, 2011. The 6,995,200 shares issued and any shares issued upon exercise of the 3,497,600 warrants are subject to a four-month hold period expiring on April 16, 2010.

In this private placement, the Company raised a total of $5,367,320 and issued a total of 15,335,200 shares and 7,667,601 share purchase warrants.

Part of the private placement is brokered by Canaccord Financial Ltd. Canaccord was paid a commission, a portion of which was taken in cash and a portion in units ($28,700 in cash and 210,000 units) and 7% in agent's warrants (280,000 agent's warrants). In addition, Canaccord received a corporate finance fee of 60,000 shares and 240,000 warrants. The warrants issued to Canaccord have the same terms as the subscriber warrants. The 270,000 shares and any shares issued upon exercise of the 625,000 warrants are subject to a four-month hold period expiring on April 16, 2010.

The proceeds of the private placement will be used toward general working capital project generation and exploration costs.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

Contact Information

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