Canada Gold Closes Private Placement
Vancouver, British Columbia, Canada – January 30, 2012 - Canada Gold Corporation (TSX-V: CI, Frankfurt: T9NB, OTC-BB: CNGZF) ("Canada Gold" or the "Company") announces that it has closed its non-brokered private placement previously announced in the Company’s news release dated November 23, 2011.
The Company issued 460,000 units (the "Units") at $0.20 per Unit for gross proceeds of $92,000. Each Unit consisting of one common share and one half share purchase warrant (the "Warrants"), each full Warrant entitling the holder to purchase one additional common share of Canada Gold at a price of $0.35, for a period of two years from the date of closing. Finder's fees (8% cash plus 10% 'B' warrants) have been paid in connection with the private placement including cash of $5,080, and 31,750 'B' warrants to qualified parties, exercisable at a price of $0.20 per warrant for a period of two years from the date of closing.
The TSX-Venture Exchange has approved the closing on January 27, 2012.
The proceeds of the private placement will be used to complete the requisite due diligence on the Handeni/Sindeni Project #2 and Project #3, and for general working capital. The Company is continuing to evaluate the Tanzanian projects, and will provide an update as appropriate.
The securities issued under the private placement are subject to a four month hold period from the date of closing. Unless permitted under securities legislation, the holder of the securities cannot trade the securities before April 29, 2012.
For more information, please contact our office.
On behalf of the Board,
President & CEO
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.
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