By Sheri Kasprzak
New York, Nov. 29 - Canyon Resources Corp. said it plans to raise up to $4 million in a private placement.
The company intends to sell up to 5.25 million shares at $0.76 each, a 15% discount to the company's 20-day volume weighted average price. The shares will be sold to a group of institutional investors.
The investors will receive series A warrants for half of the shares purchased in the offering and series B warrants for a quarter of the shares purchased in the offering. The series A warrants are exercisable at $1.30 each for three years, and the series B warrants are exercisable at $1.08 each for one year.
Proceeds will be used for working capital and general corporate purposes.
Golden, Colo.-based Canyon is a mineral exploration company.
| Issuer: | Canyon Resources Corp.
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| Issue: | Stock
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| Amount: | $4 million (maximum)
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| Shares: | 5.25 million (maximum)
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| Price: | $0.76
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| Warrants: | Series A warrants for half of the shares purchased; series B warrants for a quarter of the shares purchased
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| Warrant expiration: | Three years for series A warrants; one year for series B warrants
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| Warrant strike price: | $1.30 for series A; $1.08 for series B
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| Pricing date: | Nov. 29
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| Stock price: | $1.08 at close Nov. 28
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