Vancouver, January 3, 2008 - Canasil Resources Inc. (Canasil, TSX-V: CLZ) announces that the Company has closed a non-brokered private placement of 1,588,000 units at an exercise price of $0.30 per unit for total proceeds of $476,400. The Company has completed all formalities for the issuance of the shares and warrants for this placement and the placement has closed effective December 31, 2007. A commission or finders’ fee will be paid with respect to part of this placement within the guidelines approved by the TSX Venture Exchange (“the Exchange”).
Each unit will consist of one common share of the Company and one-half of one share purchase warrant (a “Warrant”); each full Warrant will entitle the holder to purchase one common share of the Company at a price of $0.45 within one year of closing. If, beginning six months following the closing of the private placement, the closing price of the Company’s shares equals or exceeds $0.75 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 May 1, 2008. The deadline for exercise of the warrants will be December 31, 2008.
The proceeds of the private placement will be used for continuing exploration programs on the Company’s mineral exploration projects and for 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.
For further information please contact:
Calgary: Garth McTavish
The TSX Venture Exchange has not reviewed and does not accept responsibilityfor the adequacy or accuracy of the content of this news release.