May 7, 2010
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Channel Resources Closes Private Placement Financing
Vancouver, BC - Channel Resources Ltd. ("Channel" or the "Company", TSX.V:CHU) announces that it has closed its non-brokered private placement of units (the "Units") announced on April 9, 2010. Pursuant to this closing the Company has issued 5,000,000 Units at a price of CDN$0.07 per Unit for gross proceeds of $350,000. Each unit is comprised of one common share of the Company ("Common Share") and one share purchase warrant (a "Warrant"), with each Warrant being exercisable for one Common Share at an exercise price of CDN$0.11 for a period of 24 months. If, during the first six months following the closing date of the financing, the shares of the Company close at a price of $0.20 or higher for a minimum of 10 consecutive trading sessions, then the Warrants must be exercised within 15 business days after notice by the Company of that event, failing which they will expire.
An additional 500,000 Units having the same terms as the Units issued to the subscribers and 500,000 finders' warrants with an exercise price of $0.10 for 24 months were issued to PI Financial Corp., as finder in connection with the financing. Following the completion of this closing of the private placement, Channel has 74,379,744 Common Shares issued and outstanding.
The securities issued pursuant the private placement are subject to a statutory resale restriction period of four months, which expires on September 8, 2010.
The proceeds of the private placement will be used primarily to fund exploration work on the Tanlouka Gold Project in Burkina Faso, as well as for corporate development and working capital purposes. Channel plans to commence a drilling program at Tanlouka in the near future that will follow up on an IP program completed in 2008 that outlined compelling geophysical structures that correlate well with soil geochemistry anomalies, channel sampling and RAB drilling in the southern portion of the 105 square kilometre property.
For further information, contact: Colin McAleenan, President and CEO Cyrus Ameli, CFO & VP Corporate Affairs Telephone 604.684.7098 info@channelresources.ca www.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/pdf/CHU2010NR050710.pdf
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Copyright � 2010 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 Fri May 7, 2010 at 11:47:25 AM Pacific Time
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