Gold Canyon Resources wraps C$15.01 million placement of stock

Deal conducted on bought-deal basis by lead underwriters CIBC, Fraser

By Devika Patel

Knoxville, Tenn., Nov. 3 - Gold Canyon Resources Inc. said it completed a C$15.01 million private placement of stock. The deal priced for C$10.06 million with a C$5 million greenshoe on Oct. 18.

Gold Canyon sold 1,797,000 common shares at C$2.35 apiece, a 5.62% discount to the Oct. 17 closing share price of C$2.49. It also sold 3,851,700 flow-through common shares at C$2.80 apiece, a 12.45% premium to the Oct. 17 closing share price.

The deal was conducted on a bought-deal basis through a syndicate of underwriters led by CIBC World Markets Inc. and Frazer Mackenzie Ltd., and including Cormark Securities Inc., GMP Securities LP, and Dahlman Rose & Co.

Proceeds will be used for exploration and development of the Springpole Gold Project and for general corporate purposes.

Gold Canyon is a mineral and precious metals exploration company based in Vancouver, B.C.

Issuer:	Gold Canyon Resources Inc.
Issue:	Common shares, flow-through common shares
Amount:	C$15,007,710 (including C$5 million greenshoe)
Warrants:	No
Underwriters:	CIBC World Markets Inc. and Fraser Mackenzie Ltd. (leads), Cormark Securities Inc., GMP Securities LP, and Dahlman Rose & Co.
Pricing date:	Oct. 18
Settlement date:	Nov. 3
Stock symbol:	TSX Venture: GCU
Stock price:	C$2.49 at close Oct. 17
Market capitalization:	C$230.18 million
Common stock
Amount:	C$4,222,950
Shares:	1,797,000
Price:	C$2.35
Flow-through stock
Amount:	C$10,784,760
Shares:	3,851,700
Price:	C$2.80

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