VANCOUVER, British Columbia, Dec. 28, 2006 (PRIME NEWSWIRE) -- Gold Canyon Resources Inc. (TSX-V:GCU) ("Gold Canyon" or "the Company") is pleased to announce that it is undertaking a non-brokered private placement of 1,740,000 common share units (the "Units") at a price per Unit of US$0.26 (Cdn$0.30) pursuant to registration and prospectus exemptions from applicable U.S. and Canadian securities laws and has received subscriptions for gross proceeds to the Company of US$452,400 (Cdn$522,000). Each Unit is comprised of one common share in the capital of the Company and one non-transferable share purchase warrant of the Company exercisable at any time up to 4:30 p.m. (Vancouver time) on the date which is twenty-four months from the date of issue of the Units for one common share at a price of US$0.39 (Cdn$0.45) per share. Completion is subject to the receipt of subscription proceeds and TSX Venture Exchange acceptance.
In connection with the non-brokered private placement, Gold Canyon has negotiated finders' fees equal to up to eight percent (8%) on gross proceeds obtained from eligible subscribers introduced to the Company.
Any securities to be issued with will be subject to a hold period of four months from the closing date in accordance with the rules and policies of the TSX Venture Exchange and applicable Canadian securities laws and such other further restrictions as may apply under foreign securities laws.
The net proceeds of the offering will be used for additional work on Gold Canyon's Cordero Gallium Project, the Springpole Gold Project and for general corporate purposes.
About Gold Canyon Resources Inc.:
Gold Canyon is engaged in the acquisition and exploration of mineral and precious metals properties. The Company controls a 100% interest in the Springpole Gold Project, the Favourable Lake Poly-metallic Project and Bear Head Uranium Project in the Red Lake Mining District of Ontario, Canada. Through its wholly owned U.S. subsidiary, Gold Canyon Resources USA Inc., the Company controls a 100% interest in the Cordero Gallium Project situated in Humboldt County, Nevada, U.S.A.
Additional information can be found on the Company's website: http://www.goldcanyon.ca.
The Gold Canyon Resources Inc. logo is available at http://www.primezone.com/newsroom/prs/?pkgid=3047
Akiko Levinson, President & Director
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities of the Company have not been registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available.
This news release includes certain forward looking statements in respect to various issues including upcoming events. These forward looking statements are based upon current expectations which involve risks and uncertainties that could cause actual outcomes and results to differ materially. Mineral exploration is subject to a high degree of risk, which even a combination of experience, knowledge, and careful evaluation may fail to overcome. Exploration activities seldom result in the discovery of a commercially viable mineral resource. Exploration activities are also expensive. The Company will therefore require additional financing to carry on its business, and such financing may not be available when it is needed. The Company disclaims any obligation to revise any forward looking statements as a result of information received after the fact or regarding future events.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.