Gold Canyon Announces $10 Million Bought Deal Private
Placement
Gold Canyon Resources Inc. (GCU: TSX-V) ("Gold Canyon" or "the
Company") is pleased to announce that it has entered into an agreement
with a syndicate of underwriters led by Cormark
Securities Inc. and
Frazer Mackenzie Limited (the "Underwriters") pursuant to which the
Underwriters have agreed to purchase, on a bought deal private
placement basis, 1,370,000 flow-through shares of Gold Canyon ("FT
Shares") at a price of $3.65 per FT Share and 1,640,000 common shares
of Gold Canyon ("Common Shares") at $3.05 per Common Share for
aggregate gross proceeds in the amount of approximately $10 million
(the "Offering").
The offering is scheduled to close on or about May 11, 2011 and is
subject to certain conditions including, but not limited to, the
receipt of all necessary approvals including the approval of the TSX
Venture Exchange.
The proceeds from the sale of the Common Shares will be used for
further exploration and development of the Company's Springpole
Gold
Project in Ontario and for general corporate purposes.
The proceeds from the sale of the FT Shares will be used to incur
Canadian Exploration Expenses (within the meaning of the Income Tax Act
(Canada), which will qualify as "flow-through mining expenditures"
for
purposes of the Income Tax Act (Canada), related to the exploration of
the Company's Canadian exploration projects. The Corporation will
renounce such Canadian Exploration Expenses with an effective date of
no later than December 31, 2011 for federal tax purposes.
The securities described herein have not been registered under the U.S.
Securities Act of 1933, as amended, and may not be offered or sold in
the United States unless registered under the Act or unless an
exemption from registration is available.
About Gold Canyon Resources Inc.:
Gold Canyon is engaged in the acquisition and exploration of mineral
and precious metals properties. The Company controls a 100% interest in
the Springpole Gold - Horseshoe Island Gold,
Platinum, Palladium
Project and Favourable Lake Poly-metallic property
currently under
option to Guyana Frontier Mining Corp. pursuant to an option and joint
venture agreement entered into in December 2005 - all in the Red Lake
Mining District of Ontario, Canada.
Through its wholly owned U.S. subsidiary, Gold Canyon Resources USA
Inc., the Company controls a 100% interest in the Cordero Gallium
Project situated in Humboldt County, Nevada, U.S.A.
Gold Canyon entered into a Joint Exploration Agreement with the Japan
Oil, Gas and Metals National Corporation (JOGMEC) in January 2009.
Additional information can be found on the Company's website:
www.goldcanyon.ca
Akiko Levinson,
President & Director
For further information, please contact:
Tel: (604) 682-3234
Toll free: 1 (888) 242-3234
Fax: (604) 682-0537
info@goldcanyon.ca
Investor Relations:
Leo Karabelas,
Tel: (416) 543-3120
Email: leo@frontlineir.com
Certain statements contained in this news release using the terms
"may", "expects to", "projects",
"estimates", "plans", "will", and
other terms denoting future possibilities, are forward-looking
statements in respect to various issues including closing of the
offering, use of proceeds and other upcoming events based upon current
expectations which involve risks and uncertainties that could cause
actual outcomes and results to differ materially. The future conduct of
the Company's business and the feasibility of its mineral exploration
properties are dependent upon a number of factors and there can be no
assurance that the Company will be able to conduct its operations as
contemplate and the accuracy of these statements cannot be guaranteed
as they are subject to a variety of risks that are beyond our ability
to predict or control and which may cause actual results to differ
materially from the projections or estimates contained herein. The
risks include, but are not limited to, the risks described in the above
press release; those risks set out in the company's disclosure
documents and its annual, quarterly and current reports; the fact that
exploration activities seldom result in the discovery of a commercially
viable mineral resource and are also significant amounts of capital to
undertake and the other risks associated with start-up mineral
exploration operations with insufficient liquidity, and no historical
profitability. The Company disclaims any obligation to revise any
forward looking statements as a result of information received after
the fact or regarding future events.
This news release includes certain "forward looking statements"
within
the meaning of the United States Private Securities Litigation Reform
Act of 1995. Without limitation, statements regarding potential
mineralization and resources and reserves, 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 world wide price of mineral
commodities, 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.
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.
Associated File:
http://www.goldcanyon.ca/i/pdf/2011-04-20_NR.pdf
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