TORONTO, June 1 /CNW/ - Coniagas Resources Limited (the "Company") (TSX-V: CNY) is pleased to announce that it has closed a majority of its previously announced private placement financing through the issuance of 3,076,922 flow-through units at a price of $0.65 per flow-through unit and 2,160,000 non flow-through units of the Company at a price of $0.50 per non flow-through unit for gross proceeds of $3.08 million (the "Offering"). Each flow-through unit is comprised of one flow-through common share and one-half of one warrant, with each whole warrant exercisable into a non flow-through common share for a period of one year at an exercise price of $0.85. Each non flow-through unit is comprised of one non flow-through common share and one warrant, with each warrant exercisable into a non flow-through common share for a period of one year at an exercise price of $0.75. The Company expects to close the balance of the $1.045 million, consisting of 2,090,000 non-flow through units, on June 2, 2009.
In connection with the Offering, the Company paid a finder's fee of $174,000 and issued an aggregate of 341,385 warrants, each of which is exercisable to purchase one common share of the Company at a price of $0.75 per share for a period of one year.
The proceeds raised from the sale of the flow-though units will be used for Canadian Exploration Expenses (within the meaning of the Income Tax Act (Canada)) related to the exploration programs of the Company. The remaining proceeds of the Offering will be used for exploration work on the Company's mineral properties and for general working capital.
The securities issued pursuant to the Offering are subject to a hold period that will expire on September 30, 2009. The Offering remains subject to the final approval of the TSX Venture Exchange.
Neither the 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.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore, involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements.