Canaco Resources Inc.

Canaco Resources Inc.

December 07, 2009 16:40 ET

Canaco Closes on 1st Tranche of $5,367,320 Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 7, 2009) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce that the Company has closed on its first tranche of non-brokered private placement previously announced on November 11 and 18, 2009. The Company raised $2,919,000 and issued a total of 8,339,999 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 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. These warrants will expire on December 7, 2011.

The 8,339,999 shares issued and any shares issued upon exercise of the 4,170,001 warrants are subject to a four-month hold period expiring on April 8, 2010.

The Company paid $145,740 in cash and issued 416,400 warrants (having the same terms as the subscriber warrants) as finders fees to Peninsula Merchant Syndications Corp., Research Capital and C3 Energy Inc., arm's length parties to the Company. Any shares issued upon exercise of the 416,400 warrants are subject to a four-month hold period expiring on April 8, 2010.

Three directors and an officer of the Company subscribed for a total of 843,600.00 units under the private placement. The Company expects to close the remainder of the private placement shortly. 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