December 2, 2009
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
CHANNEL RESOURCES ANNOUNCES NON-BROKERED PRIVATE PLACEMENT FINANCING
Vancouver, BC - Channel Resources Ltd. ("Channel" or the "Company", TSX.V:CHU) announces a private placement of up to 3,750,000 units (a "Unit") at a price of CDN$0.08 per Unit. Each Unit will be comprised of one common share of the Company ("Common Shares") and one share purchase warrant (a "Warrant"), with each Warrant being exercisable for one Common Share ("Warrant Share") at an exercise price of CDN$0.11 for a period of 24 months.
The proceeds of the private placement will be used to fund exploration and pre-development work on its properties, primarily the Fox Creek Lithium / Potash Brine Project located in Alberta, as well as for corporate development and working capital purposes.
Completion of the private placement is subject to execution and delivery of standard documentation and receipt of all required regulatory approvals and consents, including the approval of the TSX Venture Exchange.
"A real advantage that Fox Creek offers the Company is the ability to advance the project through major milestones, like process testing and resource estimation, on a much lower budget than a comparable hard rock project," commented Colin McAleenan, President and CEO of Channel Resources. "This unit placement, for gross proceeds of up to $300,000, will enable the Company to take some major steps in advancing the project while minimizing share dilution."
For further information, contact: Colin McAleenan, President and CEO Cyrus Ameli, CFO & VP Corporate Affairs Telephone 604.684.7098 info@channelresources.ca
Some of the statements contained herein are forward-looking statements which involve known and unknown risks and uncertainties. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the price of minerals, general market conditions, risks inherent in mineral exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The Company undertakes no obligation to update publicly or otherwise revise any forward-looking statements or the foregoing list of factors, whether as a result of new information or future events or otherwise. Further disclosure on risk factors is available in the Company's various corporate filings at www.sedar.com.
Neither the 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.
- Associated File: http://www.channelresources.ca/i/pd f/CHU2009NR120209.pdf
Copyright � 2009 CHANNEL RESOURCES LTD. (CHU) All rights reserved. For more information visit our website at http://www.channelresources.ca/ or send email to info@channelresources.ca .. Message sent on Wed Dec 2, 2009 at 6:12:09 AM Pacific Time
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