Canadian Gold Resources plans $100,000 private placement with directors

Canadian Gold Resources Ltd. (TSXV: CAN) announced plans to complete a non-brokered private placement of up to 1,666,667 common shares at $0.06 per share, raising gross proceeds of approximately $100,000.

The shares will be issued to two directors of the company, each of whom is an accredited investor. The company said it intends to use the proceeds for general working capital purposes.

The director subscriptions constitute a "related party transaction" as defined under Multilateral Instrument 61-101. The company expects the transaction to qualify for an exemption from formal valuation and minority shareholder approval requirements, as the fair market value of the securities does not exceed 25% of the company's market capitalization.

All securities issued under the placement are subject to a statutory hold period of four months and one day from the date of issuance. The placement remains subject to customary closing conditions, including acceptance by the TSX Venture Exchange.

Canadian Gold Resources has 54,868,876 common shares outstanding and is a junior exploration company with three gold properties totaling approximately 18,000 hectares on Quebec's Gaspé Peninsula.

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