SOURCE: Gold Canyon Resources Inc.

February 13, 2006 09:54 ET

Gold Canyon Proposes Private Placement of US$500,000

2006 Winter Drill Program to Commence

VANCOUVER, BC -- (MARKET WIRE) -- February 13, 2006 --Gold Canyon Resources Inc. (TSX-V: GCU) ("Gold Canyon" or "the Company") is pleased to announce that it has arranged a non-brokered private placement of up to 2,000,000 common share units (the "Units") at a subscription price of (US)$0.25 per Unit for gross proceeds of (US)$500,000. Each Unit consists of one common share in the capital of the Company and one non-transferable common share purchase warrant, each whole warrant entitling the holder to acquire one additional common share at a price of (US)$0.40 per share for a period of two years from the date of the closing of the Offering. In connection with the non-brokered private placement, Gold Canyon has negotiated finders' fees equal to up to eight percent (8%) on gross proceeds obtained from eligible subscribers introduced to the Company. For the purposes of conversion to Canadian funds, the Company has used an exchange rate of 1.1542 (US$0.25 = CDN$0.29), being the nominal noon rate of the Bank of Canada on February 10, 2006.

All securities issued are subject to a four-month hold period in accordance with applicable Canadian securities law and the policies of the TSX Venture Exchange. Completion of the proposed private placement is subject to TSX Venture Exchange acceptance and the execution of definitive subscription agreements.

2006 Winter Drill Program Status

The Company has had a crew in camp for roughly two weeks making preparations for the winter drilling campaign. The planned program will consist of approximately 10,000 feet of diamond drilling at a budgeted "all in" cost to the Company of CDN$1,000,000.

This winter's drill program will address two specific objectives at Springpole. The first being additional drilling in specific areas identified during recent GEMCOM modeling of the project to increase areas of known or suspected mineralization where gaps in the existing drilling limit projections of mineralization. This will include projections of the East Extension Bonanza along trend, down rake, and down dip as well as drill testing other areas where gaps in the drill pattern limit the projection of mineralization. The second objective will be to explore promising new targets identified by the Company as a result of its ongoing exploration modeling and fieldwork completed during the Summer 2005 Field Season. The area to be drilled included significant targets situated both within and external to the Core Area.

About Gold Canyon Resources Inc.:

Gold Canyon is engaging 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,
Director & CEO
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THIS RELEASE

Contact Information

  • For further information, please contact:
    Elaine Einarson
    Investor Relations
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