Vancouver, February 21, 2012 - Canasil Resources Inc. (Canasil, TSX-V: CLZ) announces that the previously announced non-brokered private placement of 3,000,000 units at $0.225 for gross proceeds of $675,000 was closed effective February 20, 2012. All shares and warrants have been issued and the Company will pay commissions and finder’s fees for a total of $29,193.75 in connection with this placement.
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 $0.35 within one year of closing. If the closing price of the Company’s shares equals or exceeds $0.60 per share for a period of ten consecutive trading days following the closing of the private placement, 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 June 21, 2012. The deadline for the exercise of warrants will be February 20, 2013.
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 projects in Durango, Sinaloa and Zacatecas States, Mexico, and in British Columbia, Canada. The Company’s directors and management include industry professionals with a track record of identifying and advancing successful mineral exploration projects. The Company is actively engaged in the exploration of its mineral properties.
For further information please contact:
President and C.E.O.
Canasil Resources Inc.
Tel: (604) 709-0109
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