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Canada Gold Announces Revised Terms Non-Brokered Private Placement
Vancouver, British Columbia, Canada – May 17, 2012 - Canada Gold Corporation (TSX-V: CI, Frankfurt: T9NB, OTC-BB: CNGZF) ("Canada Gold" or the "Company") has revised the terms of the non-brokered private placement (the "Private Placement") previously announced on April 25, 2012, due to current market conditions. The Private Placement will now consist of up to 15 million units (the "Units") at a price of $0.12 per Unit, for gross proceeds of up to $1.8 million. Each Unit consists of one common share and one-half non-transferable share purchase warrant; each full warrant entitling the holder to purchase one additional common share of the Company at a price of $0.25 for a period of 24 months from the date of closing.
The Private Placement will be subject to regulatory and TSX Venture Exchange approval. Finder's fees may be payable on this transaction. Proceeds from the Private Placement will be used to complete the acquisitions of Projects #1, #2 and #3 in Tanzania; to initiate and execute exploration programs; to investigate and conduct due diligence on other possible acquisitions; and for general working capital.
On Behalf of the Board,
Dave McMillan
President & CEO
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.
Cautionary Note Regarding Forward-Looking Statements: Certain disclosure in this release, including statements regarding the Company's plans for and intentions with respect to the acquisition and exploration of the Tanzanian Projects, the possible completion of a private placement, and the intended use of proceeds constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and Canadian securities legislation. In making the forward-looking statements in this release, the Company has applied certain factors and assumptions that the Company believes are reasonable, including that the Company is able to obtain any required government or other regulatory approvals and any required financing to complete the Company's planned exploration activities, that the Company is able to procure equipment and supplies in sufficient quantities and on a timely basis, that actual results of exploration activities are consistent with management's expectations, and general risks associated with business and the timing and success in the completion of private placements. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to Canada Gold's operation as a mineral exploration company that may cause future results to differ materially from those expressed or implied in such forward-looking statements. Such uncertainties and risks may include, among others, actual results of the Company's exploration activities being different than those expected by management, uncertainties involved in the interpretation of drilling results and geological tests, delays in obtaining required government or other regulatory approvals or financing, inability to procure equipment and supplies in sufficient quantities and on a timely basis, equipment breakdowns and bad weather. There can be no assurance that such statements will prove to be accurate, and actual results and future events could differ materially from those anticipated in such statements. Readers are cautioned not to place undue reliance on forward-looking statements. Canada Gold does not intend, and expressly disclaims any intention or obligation to, update or revise any forward-looking statements whether as a result of new information, future events or otherwise, except as required by law.
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