VANCOUVER,
BRITISH COLUMBIA--(Marketwire - Dec. 7, 2009) - Canaco Resources Inc. (TSX VENTURE:CAN) is
pleased to announce that the Company has closed on its first tranche of
non-brokered private placement previously announced on November 11 and 18,
2009. The Company raised $2,919,000 and issued a total of 8,339,999 units at
$0.35 per unit. Each unit consists of one common share and one-half of one
common share purchase warrant. One full warrant will entitle the holder to
acquire one common share at $0.45 per share in the first year and $0.75 per
share in the second year. These warrants will expire on December 7, 2011.
The 8,339,999
shares issued and any shares issued upon exercise of the 4,170,001 warrants are
subject to a four-month hold period expiring on April 8, 2010.
The Company paid
$145,740 in cash and issued 416,400 warrants (having the same terms as the
subscriber warrants) as finders fees to Peninsula Merchant Syndications Corp.,
Research Capital and C3 Energy Inc., arm's length parties to the Company. Any
shares issued upon exercise of the 416,400 warrants are subject to a four-month
hold period expiring on April 8, 2010.
Three directors
and an officer of the Company subscribed for a total of 843,600.00 units under
the private placement. The Company expects to close the remainder of the
private placement shortly. The proceeds of the private placement will be used
toward general working capital project generation and exploration costs.