Gold Canyon Resources Inc.
TSX VENTURE : GCU

Gold Canyon Resources Inc.

July 19, 2005 07:30 ET

Gold Canyon Announces Private Placement of $815,000 U.S.

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 19, 2005) - Gold Canyon Resources Inc. (TSX VENTURE:GCU) ("Gold Canyon" or "the Company") is pleased to announce that it has arranged a private placement of up to 1,630,000 common share units (the "Units") at a subscription price of (US)$0.50 per Unit for gross proceeds of (US)$815,000.00. Each Unit consists of one common share in the capital of the Company and one-half of one non-transferable common share purchase warrant, each whole warrant entitling the holder to acquire one additional common share at a price of (US)$0.60 per share for a period of 18 months from the date of the closing of the Offering. A finders' fee equal to 8% of the gross proceeds of the private placement is payable in cash to Shields & Co. of New York, New York.

All securities will be subject to a four month hold period in accordance with applicable Canadian securities law and the policies of the TSX Venture Exchange. The securities have not been registered under the United States Securities Act of 1933, as amended or the securities laws of any state of the United States and may not be sold, transferred or assigned in the absence of an effective registration statement for the securities under applicable securities laws, or an available exemption from the registration requirements of those laws. Completion of the private placement is subject to final acceptance of the Company's filing documentation by the TSX Venture Exchange.

The net proceeds of the offering will be used for general corporate purposes and for additional work on Gold Canyon's Springpole Gold Project and Cordero Gallium Project.

The Company will not be proceeding with the non-brokered private placement originally announced on May 13, 2005 in lieu of the proposed private placement described above.

Gold Canyon is engaged in the acquisition and exploration of mineral and precious metals properties and currently owns and operates the Springpole Gold Project in the Red Lake Mining District of Ontario, Canada and its Cordero Gallium Project in Humboldt County, Nevada, U.S.A. Additional information can be found on the Company's website: www.goldcanyon.ca.

Robert Carrington, Chief Executive Officer & Director

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Gold Canyon Resources Inc.
    Ron Schmitz
    Director
    (604) 682-3234
    (604) 682-0537 (FAX)
    or
    Gold Canyon Resources Inc.
    Ken Faulkner
    Investor Communications, Corporate Development
    (250) 862-0724
    www.goldcanyon.ca