Canary Gold closes $1.68-million private placement

Executive Summary

• Canary Gold Corp. has closed an oversubscribed non-brokered private placement, raising gross proceeds of $1,687,500.
• The company issued 6.75 million units at $0.25 per unit, with each unit comprising one common share and one transferable warrant.
• Net proceeds will be utilized for exploration at the Madeira River project in Brazil and for general working capital.

Key Details

• Gross Proceeds: $1,687,500.
• Offering Size Increase: The offering size was increased due to increased demand.
• Units Issued: 6,750,000 units.
• Price Per Unit: $0.25.
• Warrant Terms (Subscribers): Each unit includes one transferable common share purchase warrant. Each warrant allows the purchase of one additional common share at $0.35 per share for a period of three years from issuance.
• Acceleration Provision: Warrants are subject to acceleration if the common shares on the Canadian Securities Exchange close at a minimum of $0.55 for 10 consecutive trading days. If triggered, the company may accelerate the expiry date to 20 days following a news release announcing such acceleration. This provision becomes effective four months and one day after warrant issuance.
• Finder’s Fees: Paid to certain finders, consisting of:
  • Cash fee: $82,250.
  • Warrants: 329,000 common share purchase warrants.
• Finder’s Warrant Terms: Each finder's warrant entitles the holder to acquire one common share at $0.35 per share for three years, subject to the same acceleration provision as subscriber warrants.
• Use of Proceeds: Advancing exploration at the Madeira River project in Brazil and for general working capital purposes.
• Hold Period: All securities issued are subject to a statutory hold period of four months and one day from the date of issuance.
• Regulatory Status: The offering remains subject to CSE (Canadian Securities Exchange) approval.

Notable Quotes

• None provided in the text.