Canyon Resources Corporation (Amex: CAU) has been busy in the financing department of late with its closing of a private placement with a group of accredited investors in the aggregate principal amount of $4.95 million with net proceeds to the company of approximately $4.7 million.
The private placement consisted of the sale of approximately 8.82 million shares of common stock, 2.21 million Series A Warrants with an exercise price of $0.640 and a term of one year from registration effectiveness, and 6.62 million Series B Warrants with an exercise price of $0.704 and a term of four years from closing.
The Series A Warrant has a redemption feature whereby the Series A Warrants can be redeemed by Canyon Resources beginning six months from the closing date, if the stock price exceeds 80 cents for a period of 10 consecutive trading days. The transaction was priced at $0.561 per share. In connection with the financing, Canyon Resources will pay a cash placement agent fee of approximately $200,000 and 1.32 million warrants. The broker warrants are at the same terms as the investor warrants.
Canyon Resources must file a registration statement with the Securities and Exchange Commission (SEC) within 45 days of the closing date covering these securities.
“The use of proceeds from this transaction are targeted for development and exploration work at our Briggs Mine in California, ongoing permitting and feasibility work at our Reward Project near Beatty, Nevada and for general corporate purposes,” stated James Hesketh – president and CEO of Canyon Resources – in a press release.
Canyon Resources engages in the exploration, acquisition, development and mining of precious metals, uranium, and other mineral properties. It has gold production operations in the western United States, as well as conducts exploration activities for mineral properties in the western United States.