Canasil Closes $150,000 Private Placement by MAG Silver Corp.
August 31, 2010
Vancouver, August 31, 2010 - Canasil Resources Inc. (Canasil, TSX-V: CLZ) announces that the Company has closed the previously announced private placement by MAG Silver Corp. of 1,500,000 units at an exercise price of $0.10 per unit for gross proceeds of $150,000. MAG Silver has entered into this private placement in connection with its option to earn a 60% interest in Canasil’s La Esperanza Silver project in Zacatecas and Durango States, Mexico. The Company has completed all formalities for the issuance of the shares and warrants for this placement and the placement has closed effective August 27, 2010.
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 $0.15 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 $0.30 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 December 28, 2010. The deadline for exercise of the warrants will be August 27, 2011.
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
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.