Canasil Resources Inc. Closes Private Placement for $825,750
June 21, 2006
Vancouver, June 21, 2006 – Canasil Resources Inc. (the Company or “Canasil”, TSX-V: CLZ) announces closing of the Company’s non-brokered private placement for a total of 3,303,000 units (the “Units”) at $0.25 per unit for total proceeds of $825,750 effective June 21, 2006. The proceeds will be used to fund the Company’s continued exploration programs and for working capital.
Due to the high demand for subscriptions in this placement, the Company requested and received approval from the Exchange for an additional 300,000 units over and above the 3,000,000 units already reserved. Following the approval, two placees for a total of 45,000 units declined to participate, and other subscribers took these units. As a result there was no change in the total number of units.
Each unit will consist of one common share of the Company and one share purchase warrant (a “Warrant”); each Warrant will entitle the holder to purchase one common share of the Company at $0.35 within one year from closing. If, beginning six months following the closing of the private placement, the closing price of the Company’s shares equals or exceeds $0.75 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 October 15, 2006.
About Canasil:
Canasil is a Canadian mineral exploration company with interests in base and precious metal properties in British Columbia, Canada, and in Durango, Sinaloa and Zacatecas States, Mexico. The Company’s directors and management include industry professionals with a consistent track record of identifying and advancing successful mineral exploration projects. The Company is actively engaged in the exploration of its mineral properties and evaluating additional acquisition opportunities.
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of the content of this news release.
For further information please contact:
Bahman Yamini
President and C.E.O.
Canasil Resources Inc.
604-709-0109