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Home > Oil Gas News > Canary Resources Raises $7,250,000 of Equity
Canary Resources Raises $7,250,000 of Equity
Toronto, Canada (PRWEB via PR Web Direct) August 2, 2005 -- (OTCPK: CYRR), Canary Resources Inc. ("Canary"), a coalbed methane (CBM) company, announces that it has closed a private placement for gross proceeds of US$7,250,000. Investors in this placement include a leading European institution. Funds raised from the placement will be used for drilling and development of CBM in the Eastern Forest City Basin in Kansas and Missouri, and for general working capital purposes.
The placement comprises 18,125,000 new Class A zero-dividend convertible preferred shares which are convertible into 18,125,000 common shares of Canary, and 9,062,500 warrants, each of which permit the holder to purchase a common share of Canary for $1.00 for four years, and carry mandatory exercise provisions if Canary common shares trade above $2.00.
Canary has 30,892,700 common shares presently issued and outstanding. After giving effect to conversion of all of the Class A convertible preferred shares, Canary would have 49,017,700 common shares outstanding.
William Chandler, President and Chief Executive Officer of Canary, commented, "We are excited to have the financial resources to begin exploiting our enormous potential in Kansas and Missouri. Detailed preparation work has put us in position to begin drilling immediately, and we anticipate having gas production and sales by the end of this year."
This news release does not constitute any offer of any securities for sale.
About Canary Resources Inc.
Canary Resources Inc. is a coalbed methane (CBM) company which is developing over 75,000 acres in the Eastern Forest City Basin in Kansas and Missouri. Coalbed methane is natural gas or methane that occurs in coal beds and has been generated during the conversion of plant material to coal. Although minor differences in geologic conditions alter production methods, coalbed methane is transported, sold, and used in a similar way to natural gas produced from conventional gas and petroleum fields.
This Press Release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. We have tried, whenever possible, to identify these forward-looking statements using words such as "anticipates," "believes," "estimates," "expects," "plans," "intends," "potential" and similar expressions. These statements reflect our current belief and are based upon currently available information. Accordingly, such forward-looking statements involve known and unknown risks, uncertainties and other factors which could cause the Company's actual results, performance or achievements to differ materially from those expressed in or implied by such statements. We undertake no obligation to update or advise in the event of any change, addition or alteration.
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