(via Thenewswire.ca)
Vancouver, British Columbia, Canada - January 5, 2012 - Canada Gold Corporation (TSX-V: CI, Frankfurt: T9N, OTC-BB: CNGZF) ("Canada Gold" or the "Company") announces that it has completed the first tranche of its non-brokered private placement previously announced in the Company's news release dated November 23, 2011.
The Company issued 460,000 units (the "Units") at $0.20 per Unit for gross proceeds of $92,000 in the first tranche. Each Unit consisting of one common share and one half share purchase warrant (the "Warrants"), each full Warrant entitling the holder to purchase one additional common share of Canada Gold at a price of $0.35, for a period of two years from the date of closing. Finder's fees payable in connection with the private placement include 8% cash plus 10% B Warrants to qualified parties, exercisable at a price of $0.20 per warrant for a period of two years from the date of closing.
The balance of the private placement is expected to be completed shortly, with final closing subject to TSX-V approval.
The proceeds of the private placement will be used to conduct exploration activities on the Company's Sindeni Project #1, to complete the requisite due diligence on the Handeni/Sindeni Project #2 and Project #3, and for general working capital.
The securities issued under the private placement are subject to a four month hold period from the date of closing. Unless permitted under securities legislation, the holder of the securities cannot trade the securities before April 29, 2012.
For more information, please contact the office or visit www.canadagold.com.
On behalf of the Board,
"Dave McMillan"
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 completion of a second tranche of a private placement of common shares of the Company (the "Offering"), and the use of proceeds from Offering, constitutes "forward-looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995 and "forward-looking information" within the meaning of 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 regulatory approval of the Offering and is otherwise able to complete the second tranche of the Offering and that actual results of the Company's exploration activities will be consistent with those expected by management. However, the forward-looking statements in this release are subject to numerous risks, uncertainties and other factors relating to the Offering and 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 include, among others, financing risks, regulatory risk, actual results of the Company's exploration activities being different than those expected by management, delays in obtaining or inability to obtain required government or other regulatory or shareholder approvals and inability to complete the Offering. 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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