Canacol Completes Initial Closing of Private Placement Equity Financing
Canacol has completed the first closing of its $1,500,000 private placement financing. Canacol issued a total of 2,219,048 units ("Units") at a price of $0.17 per Unit for gross proceeds of $377,238 in this initial closing. Each Unit issued pursuant to the private placement, consisted of one common share of the Corporation ("Common Share") and one-half of one common share purchase warrant ("Warrant"), with each whole Warrant entitling the holder to acquire one Common Share at a price of $0.30 until July 24, 2011. The securities issued pursuant to the private placement are subject to a four-month hold period. A finder's fee of 8% of the gross proceeds raised was paid to certain finders in connection with the private placement. A second closing is scheduled to occur at a later date.
The proceeds from this financing, along with the recently announced sale of the US $1,000,000 receivable for US $910,000, will be used to fund the Corporation's planned development drilling and workover activities in Colombia and exploration activities in Guyana.