Central Announces $750,000 Financing
May 25 2011 - 10:30AM
Marketwired
Central Resources Corp. (TSX VENTURE: CBC) ("Central" or the
"Company") is pleased to announce that it has negotiated a
non-brokered private placement of $750,000 through the sale of
3,750,000 flow-through units at a price of $0.20 per unit.
Each flow through unit will consist of one flow-through common
share and one half of one non flow-through share purchase warrant.
Each whole warrant will entitle the holder to purchase one
additional non flow-through common share of the Company for a
period of 12 months from closing at an exercise price of $0.40. The
Company may accelerate the expiry of the warrants (following the
expiry of the 4 month hold period) if the twenty-day
volume-weighted average trading price of the shares on the TSX
Venture Exchange (or such other exchange on which the shares may be
listed) exceeds $0.60 in which event the warrant will expire 30
calendar days after the date that the Company provides notice to
the holders.
The Company will pay a cash finder's fee equal to 6% of the
gross proceeds raised in the private placement. The Company will
also issue that number of finder's warrants equal to 10% of the
number of units sold under the private placement. Each finder's
warrant will entitle the holder to purchase one non flow-through
common share of the Company for a period of 12 months from closing
at an exercise price of $0.40. The finder's warrant will be subject
to the same acceleration provisions as the flow-through units sold
in the private placement.
The proceeds from the private placement will be used for
exploration work on the Company's Yukon mineral properties. The
2011 exploration program is planned to consist of soil sampling and
trenching to follow up gold soil anomalies identified last year. A
follow up diamond drill program is planned for fall.
Closing is subject to a due diligence condition and the
acceptance of the TSX Venture Exchange. All securities issued under
the private placement will be subject to a four month hold
period.
About Central Resources
Central Resources Corp. is a junior exploration company created
to leverage the extensive knowledge and experience of a dedicated
group of financial and resource industry professionals. The Company
has acquired options on several highly prospective mineral
properties in the Yukon and British Columbia and continues to
pursue additional opportunities to build shareholder value.
This news release contains forward-looking information, which
involves known and unknown risks, uncertainties and other factors
that may cause actual events to differ materially from current
expectation. Important factors - including the availability of
funds, the results of financing efforts, the results of exploration
activities - that could cause actual results to differ materially
from the Company's expectations are disclosed in the Company's
documents filed from time to time on SEDAR (see www.sedar.com).
Readers are cautioned not to place undue reliance on these
forward-looking statements, which speak only as of the date of this
press release. The company disclaims any intention or obligation,
except to the extent required by law, to update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise.
Neither TSX Venture Exchange nor its Regulation Services
Provider (as that term is defined in the policies of the TSX
Venture Exchange) accepts responsibility for the adequacy or
accuracy of this release.
Contacts: Central Resources Corp. Paul Reynolds President and
CEO 604-630-3730 info@centralres.ca www.centralres.ca Strike
Communications Inc. James Berard 604-687-2768 or Toll Free:
1-877-459-5507 james@strike-ir.com
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