Caza Gold Retires $300,000 Debt Financing; Options Los Angeles Gold Properties in Chihuahua, Mexico; Raises $1,155,000 Equity Financing; Drills Los Arrastres Properties in Guanajuato, Mexico;
September 29, 2008
Vancouver, Canada – Caza Gold Corp. announces that the $300,000 debt financing raised late last year for working capital has been retired. The financing was in the form of a demand loan bearing simple interest at 9% per annum. Nine of the 16 lenders were either management or directors of either Caza or Canarc Resource Corp.
The demand loan was retired earlier this year by the re-payment of $20,000 and the issuance of 2.8 million units of Caza Gold Corp. priced at $0.10 per unit. Each unit consisted of one common share and a half warrant, each full warrant entitling the holder to purchase one additional common share at $0.12 within an 18 month period.
Caza is also pleased to announce that it has acquired an option to purchase a 100% interest in the Los Angeles mineral properties (160 hectares) located in the Ocampo gold district of Chihuahua State, Mexico. The purchase price is US$1 million, to be made in a schedule of escalating cash payments over a 4 year period, subject to a 3% NSR production royalty.
The Los Angeles properties are strategically located between the 3.5 million oz (gold equivalent) Pinos Altos gold mine now under development by Agnico-Eagle to the north, and the 6.2 million oz (gold equivalent) producing Ocampo gold mine owned by Gammon Gold to the south.
The properties cover a strong, north-west trending, gold-bearing quartz vein-stockwork zone that can be traced for over 2 km but has never been drilled. Caza plans to commence a Phase 1 surface exploration program of geological mapping, geochemical sampling and backhole trenching in the 4th Quarter, 2008.
Caza Gold successfully closed a $1,155,000 equity financing in the 3rd Quarter 2008, in the form of a private placement of 4.62 million units at $0.25 per unit, each unit consisting of one common share and one half share purchase warrant. Each full warrant can be exercised to purchase an additional common share for $0.35 within an 18 month period.
A Phase 1 drilling program was undertaken this summer on the Los Arrastres properties in Guanajuato, Mexico. Preliminary results confirm the presence of anomalous gold in each of the three mineralized zones drilled but not in economic quantities. Final results are still being interpreted and will be reported in the 4th Quarter 2008.
Caza Gold Corp. is an unlisted gold exploration company that was spun out of Canarc Resource Corp. to Canarc shareholders in order to facilitate the financing, acquisition and exploration of strategic gold properties in Mexico.
CAZA GOLD CORP.
Per:
/s/ "Bradford J. Cooke"
Bradford Cooke
Chairman and CEO
For more information, please contact Gregg Wilson Toll free: 877-684-9700, tel: (604) 685-9700, fax: (604) 685-9744, email gwilson@canarc.net .
CAUTIONARY DISCLAIMER – FORWARD LOOKING STATEMENTS
Certain statements contained herein regarding the Company and its operations constitute “forward-looking statements” within the meaning of the United States Private Securities Litigation Reform Act of 1995. All statements that are not historical facts, including without limitation statements regarding future estimates, plans, objectives, assumptions or expectations of future performance, are “forward-looking statements”. We caution you that such “forward looking statements” involve known and unknown risks and uncertainties that could cause actual results and future events to differ materially from those anticipated in such statements. Such risks and uncertainties include fluctuations in precious metal prices, unpredictable results of exploration activities, uncertainties inherent in the estimation of mineral reserves and resources, fluctuations in the costs of goods and services, problems associated with exploration and mining operations, changes in legal, social or political conditions in the jurisdictions where the Company operates, lack of appropriate funding and other risk factors, as discussed in the Company’s filings with Canadian and American Securities regulatory agencies. Resource and production goals and forecasts may be based on data insufficient to support them. The Company expressly disclaims any obligation to update any forward-looking statements. We seek safe harbour.