Vancouver, March 19, 2007 - Canasil Resources Inc. (Canasil, TSX-V: CLZ) announces that the TSX Venture Exchange (The Exchange) has confirmed on March 12, 2007, final acceptance of the non-brokered private placement of 4,000,000 units at an exercise price of $0.40 per unit for total proceeds of $1,600,000, announced on February 12 and February 21, 2007. The Company has now completed all formalities for the issuance of the shares and warrants for this placement and the placement has closed effective March 19, 2007. A finders’ fee will be paid with respect to part of this placement within the guidelines approved by The Exchange.
Each unit consists of one common share of the Company and one half share purchase warrant (a “Warrant”); each Warrant will entitle the holder to purchase one common share of the Company at $0.55 within one year from closing. If, beginning six months following the closing of the private placement, the closing price of the Company’s shares equals or exceeds $1.00 per share for a period of ten consecutive trading days, the Company will have the right to accelerate the expiry date of the Warrants by giving the Warrant-holders at least 30 days’ written notice.
In accordance with securities legislation currently in effect, the Shares, the Warrants and the Warrant Shares will be subject to a “hold period” of four months plus one day, expiring on July 14, 2007. The deadline for exercise of the warrants will be March 13, 2008.
The Company has also received $260,400 from the exercise of warrants from a previous placement for issue of 744,000 common shares at $0.35 per share. The total proceeds amounting to $1,860,400 will be used to fund drill programs on the Company’s silver, gold, zinc and copper projects in Mexico and in British Columbia, Canada, and for general working capital.
Canasil is a Canadian mineral exploration company with interests in precious and base metal properties in British Columbia, Canada, and in Durango, Sinaloa and Zacatecas States, Mexico. The Company’s directors and management include industry professionals with a consistent track record of identifying and advancing successful mineral exploration projects. The Company is actively engaged in the exploration of mineral properties and evaluating additional acquisition opportunities.
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of the content of this news release.
For further information please contact:
President and C.E.O.
Canasil Resources Inc.