Canaco Resources Inc.

Canaco Resources Inc.

November 10, 2009 16:15 ET

Canaco Announces $4,025,000 Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 10, 2009) - Canaco Resources Inc. (TSX VENTURE:CAN) is announcing that it intends to proceed with a brokered and non-brokered private placement of $4,025,000 through the sale of units at $0.35 per unit. It plans to sell up to 11,500,000 units, each unit will consist of one common share and one-half of one common share purchase warrant. One full warrant will entitle 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. The warrants will expire two years from closing.

Directors and officers of the Company will be subscribing for a portion of the financing. Canaco may pay a finders fee in cash and/or warrants.

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

The private placement is subject to certain conditions, including, but not limited to, satisfactory due diligence and the receipt of all necessary approvals, including the approval of the TSX Venture Exchange.

The Company relies on litigation protection for "forward-looking" statements. This press release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the Company's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due o the inherent uncertainty therein. No independent consultant has rendered an expert opinion on the property.

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
    604-488-0822 or 1-866-488-0822
    Canaco Resources Inc.
    Nick Watters
    Investor Relations
    604-488-0822 or 1-866-488-0822