Vancouver, February 12, 2007 - Canasil Resources Inc. (Canasil, TSX-V: CLZ) announces that the Company has negotiated a non-brokered private placement of 3,750,000 units at an exercise price of $0.40 per unit for total proceeds of $1,500,000. A commission or finders’ fee may be paid with respect to part of this placement. The terms of the placement are subject to acceptance by the TSX Venture Exchange (“the Exchange”).
Each unit will consist 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.
The proceeds of the private placement will be used for continuing exploration programs on the Company’s mineral exploration projects, including 6,000 metres of diamond drilling on the Company’s drill ready projects, and for working capital. A Phase 1 drill program on the Colibri silver-zinc-copper-lead project in Durango, Mexico, is currently funded and in progress, and the 2007 exploration program includes plans for the following diamond drill programs:
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:
|Bahman Yamini||Doug Kerr|
|President and C.E.O.||Corporate Communications|
|Canasil Resources Inc.||604-718 5454|