Gold Canyon Completes $4,000,000 Private Placement

First Mining Gold

First Mining is a mineral property holding company whose principal business activity is to acquire high quality mineral assets with a focus in the Americas. The Company currently holds a portfolio of 21 mineral assets in Canada, Mexico and the U.S.A.

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Gold Canyon Completes $4,000,000 Private Placement

posted on Sep 23, 2010 06:49PM

Gold Canyon Completes $4,000,000 Private Placement

VANCOUVER, BRITISH COLUMBIA, Sep 23, 2010 (MARKETWIRE via COMTEX News Network) --

Gold Canyon Resources Inc. (TSX VENTURE: GCU)(PINK SHEETS: GDCRF) ("Gold Canyon" or "the Company") announces that it has completed its private placement offering of 8,888,889 units (the "Units") at a subscription price of (Cdn)$0.45 per Unit for gross proceeds of (Cdn)$4,000,000. Each Unit is comprised of one common share in the capital of the Company and one-half of one non-transferable share purchase warrant of the Company, each whole warrant exercisable at any time up to 4:30 p.m. (Vancouver time) on September 23, 2012 for one common share at a price of $0.65 per share.

In connection with the offering, the Company has paid a finder fees in cash of $139,125 (5% of the proceeds) and 371,000 (6%) non-transferable share purchase warrants exercisable at a price of $0.45 at any time up to 4:30 p.m. (Vancouver time) on September 23, 2012.

Any securities to be issued will be subject to a hold period of four months and one day, expiring on January 24, 2011 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 proceeds of this offering will be used for additional work on Gold Canyon's Springpole Gold Project in the Red Lake Mining District of Ontario, Canada 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 - Horseshoe Island Gold, Platinum, Palladium Project and Favourable Lake Poly-metallic property currently under option to Shoreham Resources Inc. pursuant to an option and joint venture agreement entered into in December 2005 - all 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.

Gold Canyon entered into a Joint Exploration Agreement with the Japan Oil, Gas and Metals National Corporation (JOGMEC) in January 2009.