Canasil Resources Inc.

Canasil Resources Inc.

December 05, 2006 19:55 ET

Canasil Resources Inc.: $375,000 Non-brokered Private Placement

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Dec. 5, 2006) - Canasil Resources Inc. (Canasil) (TSX VENTURE:CLZ) is pleased to announce that the Company has negotiated a non-brokered private placement of 1,500,000 units at an exercise price of $0.25 per unit for total proceeds of $375,000. There are no commissions or finders' fees associated with this placement. The terms of the placement are subject to acceptance by the TSX Venture Exchange ("the Exchange").

Each unit will consist of one common share of the Company and one share purchase warrant (a "Warrant"); each Warrant will entitle the holder to purchase one common share of the Company at $0.35 within one year from closing. If, beginning six months following the closing of the private placement, the closing price of the Company's shares equals or exceeds $0.75 per share for a period of ten consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants by giving the Warrant-holders at least 30 days' written notice.

The proceeds of the private placement will be used for continuing exploration programs on the Company's mineral exploration projects, and for working capital.

About Canasil:

Canasil is a Canadian mineral exploration company with interests in base and precious metal properties in British Columbia, Canada, and in Durango, Sinaloa and Zacatecas States, Mexico. The Company's directors and management include industry professionals with a consistent track record of identifying and advancing successful mineral exploration projects. The Company is actively engaged in the exploration of mineral properties and evaluating additional acquisition opportunities.

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

Contact Information

  • Canasil Resources Inc.
    Bahman Yamini
    President and C.E.O.
    (604) 709-0109
    Canasil Resources Inc.
    Doug Kerr
    Corporate Communications
    (604) 718-5454