Canaco Resources Inc.

Canaco Resources Inc.

June 17, 2005 14:39 ET

Canaco Completes $486,000 Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 17, 2005) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce the completion a $486,000 brokered private placement previously announced in Stockwatch on March 21 and May 24, 2005. On closing, the company issued a total of 1,215,000 units at a price of $0.40 cents per unit. Each unit consists of one common share and one-half non-transferable share purchase warrant. Each share purchase warrant will entitle the bearer to purchase an additional common share at $0.50 cents per share for a term expiring June 13, 2006.

The funds raised through the completion of this private placement will be used to support advanced exploration on the Company's Hajdukovich and Macomb properties located in the Fairbanks region of Alaska, and for general working capital.

The Hajdukovich property is one of only a few truly new mineral discoveries to be made in Alaska in the last 20 years. The property is drill-ready and contains a minimum of four prospects with significant potential for hosting economically attractive mineralization. A multi-phase reconnaissance and diamond core drilling program are recommended for 2005.

The principal target, the Sneaker zone, is defined by several occurrences of visible gold in sheeted, northeast-trending, low-sulphide gold-bismuth quartz veins over a minimum 600-metre-by-900-metre area within a five km alteration trend. A total of 1,293 mineralized grab samples have been assayed from the zone with 145 samples returning values in excess of one gram gold per tonne. These samples range up to 184.46 grams per tonne (gAu/t) gold and average 10.97 (gAu/t) gold.

The Gert zone comprises stockwork quartz veining within granodiorite and monzonite up to 12.62 gAu/t gold from a target area that may exceed 300 meters across slope.

The Macomb property claims cover an area of 61 square kilometres where stream sediment sampling geochemical program has identified two intrusion-related gold targets. The West Berry Creek Zone is up to 700m wide and a 2.2km long corridor of elevated gold levels in soils (20 to 850 ppb). The East Berry Creek zone covers elevated gold (up to 0.5 gAu/t), lead, zinc, arsenic and bismuth levels in soils over an area up to 400m wide and up to 1,700m long.

Shares, warrants and any shares issued upon exercise of the warrants are subject to a four month hold period expiring on October 15, 2005.

Under the private placement, the Company paid Leede Financial Markets Inc. and administration fee of $10,000 plus GST which Leede has elected to receive 25,000 units plus cash of $700 GST, a 7% cash fee of 34,020,000 and 97,200 Agents Options that are exercisable at $0.50 per share for a one year period. Leede is at arm's length to the Company.

Canaco Resources is an emerging junior gold exploration company newly listed on the TSX Venture Exchange. The company is actively engaged in the exploration of advanced gold prospects in Alaska.

Andrew Lee Smith, President and CEO

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.
    Craig Engelsman
    (604) 488-0822 or Toll Free: 1-866-488-0822
    Canaco Resources Inc.
    Nick Watters
    (604) 488-0822 or Toll Free: 1-866-488-0822