VANCOUVER, BRITISH COLUMBIA--(Marketwired - Sept. 5, 2013) -
NOT FOR DISSEMINATION IN THE UNITED STATES OR OVER UNITED STATES NEWSWIRE SERVICES.
Channel Resources Ltd. ("Channel") (TSX VENTURE:CHU) announces the completion of the previously announced private placement (the "Private Placement") of 29,650,936 common shares (the "Common Shares") in the capital of Channel. The Common Shares were issued to West African Resources Limited ("West African") at a price of $0.05 per Common Share for gross proceeds of $1,482,546.80. As a result of the Private Placement, West African now own 19.9% of the Common Shares of Channel.
Gross proceeds of the Private Placement will be used for working capital purposes and to fund transaction costs in connection with West African's intended acquisition of Channel by way of a plan of arrangement, as previously disclosed in a joint news release dated August 14, 2013.
The Private Placement remains subject only to satisfactory customary regulatory review of the Company's post-completion filings with the TSX Venture Exchange.
The securities will be subject to a resale restriction for a period of four months plus one day, expiring on January 6, 2014.
About Channel Resources Ltd.
Channel is a mineral exploration company with a portfolio of properties that includes the Tanlouka gold project in Burkina Faso, West Africa and a mineral-bearing brine property in Alberta, Canada. Channel's Tanlouka Project has been its primary focus and the company has advanced it rapidly from initial discovery in 2010 to the publication in 2012 of a maiden resource estimate for the Mankarga 5 target. Channel has set the stage for the continued expansion of Mankarga 5 as well as for potential new discoveries on mineralized targets in the north and central regions of the Tanlouka permit, allowing for significant exploration upside. Existing infrastructure in the area together with that introduced by Channel during its exploration programs will allow for work to proceed quickly to both expand the project as well as to assess the potential for its development.
Further information on Channel is available on the company's website at http://www.channelresources.ca.
Some of the statements contained herein are forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the price of minerals, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise. Further disclosure on risk factors is available in the Company's various corporate filings at www.sedar.com.
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.