VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 4, 2010) -
NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Canaco Resources Inc. (TSX VENTURE:CAN) (the "Company" or "Canaco") is pleased to announce that it closed the private placement previously announced on July 19, 2010. The Company today issued 17,900,000 common shares at $1.40 per share for total gross proceeds of $25,060,000. The private placement was conducted by a syndicate led by TD Securities Inc. and including Canaccord Genuity Corp., Haywood Securities Inc. and Dundee Securities Corporation (the "Underwriters"). The common shares issued with respect to the Offering will be subject to a four month hold period expiring on December 5, 2010.
The Underwriters were paid a 6% cash commission of $1,503,600. In addition the Underwriters received 1,074,000 warrants, each warrant entitles the holder to acquire one common share at $1.40 per share on or before August 4, 2012. Any shares issued upon exercise of the 1,074,000 warrants are subject to a four-month hold period expiring on December 5, 2010.
The net proceeds from the Offering will be used by Canaco to fund further exploration and development of the Company's mineral properties and for general corporate purposes.
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless an exemption from such registration is available.
Canaco Resources Inc. is listed on the TSX Venture Exchange and is engaged in the exploration and development of Tanzanian gold prospects.