Oct 30 2010
Gold Canyon Resources Inc. (TSX VENTURE:GCU) has announced that it has closed its previously announced brokered private placement.
The Company closed a brokered private placement through a syndicate of agents led by Fraser Mackenzie Limited which included Industrial Alliance Securities Inc. and Stonecap Securities Inc. (collectively, the "Agents") to sell 6,000,000 flow through units (the "FT Units") at a price of $1.00 per FT Unit for gross proceeds of $6,000,000.
The FT Units consist of one flow-through common share of the Company and one-half of one common share purchase warrant. Each full warrant entitles the holder to acquire a further common share of the Company at a price of $1.25 per common share for a period of 24 months following the closing date.
The Agents received a cash fee equal to 7% of the gross proceeds from the brokered private placement and 180,000 broker warrants entitling the Agents to acquire a further common share of the Company at a price of $1.25 per common share for a period of 24 months following the closing date.
All securities issued pursuant to the financing will be subject to a four month and one day hold period expiring on March 2, 2011.
The funds raised from the issuance of the FT Units will be used for expenditures on the Company's Springpole Gold Project which will qualify as Canadian exploration expenses and flow-through mining expenditures (as defined in the Income Tax Act) and will be renounced in favour of purchasers for 2010.
Source: Gold Canyon Resources Inc.