Deal Financing and $10,800,000 to Secondary Bought Deal Financing
cnw
/NOT FOR DISTRIBUTION TO UNITED STATES NEWS WIRE SERVICES OR FOR
RELEASE, PUBLICATION, DISTRIBUTION OR DISSEMINATION, DIRECTLY OR
INDIRECTLY, IN WHOLE OR IN PART, IN OR INTO THE UNITED STATES/
VANCOUVER, Feb. 24 /CNW/ - Canaco Resources Inc. (TSXV:CAN) ("Canaco" or the "Company") is pleased to announce that, in connection with its previously announced
bought deal offering (the "Offering") co-led by Canaccord Genuity Corp.
and TD Securities Inc. (the "Underwriters"), it has increased the size
of the treasury offering ("Treasury Offering") to 22,200,000 common
shares to raise gross proceeds of $119,880,000. In addition, the
secondary offering of common shares ("Secondary Offering"), which the
Underwriters have agreed to purchase on a bought deal basis from
SinoTech (Hong Kong) Corporation Limited, has been increased to
8,000,000 common shares to raise gross proceeds of $43,200,000.
Net proceeds from the Treasury Offering are expected to be used by
Canaco to fund ongoing development and exploration activities on the
Company's African mineral properties and for general corporate and
working capital purposes.
The Common Shares to be issued pursuant to the Treasury Offering, and
the Common Shares to be sold pursuant to the Secondary Offering, are
expected to be offered by way of a short form prospectus in the
provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario
and New Brunswick.
Closing of the Treasury Offering and the Secondary Offering is scheduled
to occur on or about March 22, 2011 and is subject to certain
conditions including, but not limited to, the receipt of all necessary
regulatory and other approvals including the approval of the TSX
Venture Exchange and the securities regulatory authorities.
The securities offered have not been, and will not be, registered under
the U.S. Securities Act of 1933, as amended (the "U.S. Securities Act")
or any U.S. state securities laws, and may not be offered or sold in
the United States or to, or for the account or benefit of, United
States persons absent registration or any applicable exemption from the
registration requirements of the U.S. Securities Act and applicable
U.S. state securities laws. This news release shall not constitute an
offer to sell or the solicitation of an offer to buy securities in the
United States, nor shall there be any sale of these securities in any
jurisdiction in which such offer, solicitation or sale would be
unlawful.
About Canaco
Canaco is a Vancouver-based mineral exploration company focused on
advanced exploration in Africa. Built on a foundation of experienced
management and focused on rapidly advancing exploration projects in
Tanzania and throughout Africa, Canaco believes it is well positioned
to build shareholder value through discovery and resource development.
Canaco's shares trade on the TSX Venture Exchange under the symbol CAN.
On behalf of the Board of Directors,
Andrew Lee Smith, P.Geo
President, CEO and Director
