CALGARY, ALBERTA--(Marketwire - July 2, 2010) - Canoro Resources Ltd. ("Canoro" or the "Company") (TSX VENTURE:CNS) is pleased to announce the closing of its previously announced prospectus rights offering (the "Offering"). Under the fully subscribed Offering, the Company raised total gross proceeds of approximately CDN$13.9 million and issued 138,771,162 common shares of the Company ("Common Shares") to shareholders who exercised their Rights. Under the Offering, each eligible shareholder of the Company received one right ("Right") for each Common Share held and each Right was exercisable for one Common Share at a price of $0.10 per Common Share.
Under the Offering, Mass Financial Corp. (the "Investor") acquired 121,940,431 Common Shares pursuant to its exercise of its basic and additional subscription privilege under the Rights. In addition and in connection with its standby commitment, the Investor was granted warrants ("Standby Warrants") to purchase up to 34,692,791 Common Shares. The Standby Warrants are exercisable at a price of $0.10 per Common Share for a period of six months. Following completion of the Offering, the Investor now owns approximately 53% of the 277,542,324 issued and outstanding Common Shares of the Company. Upon exercise of the Standby Warrants and assuming no other Common Shares are issued prior to such exercise, the Investor will own approximately 58% of the issued and outstanding Common Shares of the Company.
In connection with the investment by the Investor under the Offering, as well as under the previously announced private placement offering, Messrs. Harley Winger and James Smith have resigned from the Canoro Board and Messrs. Ravin Prakash and Nowroz Jal Cama have been appointed to the Canoro Board, subject to regulatory approval. Both Mr. Prakash and Mr. Cama are Indian resident nationals having considerable experience doing business in that country, the appointment of whom reflects the Company's increased commitment to India. The Board presently consists of five members, three of whom are nominees of the Investor.
Ravin Prakash has been a director of the Investor since 2005. He has over 35 years of corporate banking and financial management experience, specialized in recovery and restructuring of doubtful assets, the raising of project and trade finance and risk assessment.
Between 1965 and 1984, Nowroz Jal Cama held positions in operations, corporate banking, human resource development and regional management with National and Grindlays Bank in London and India and other international banks in Hong Kong, Saudi Arabia and India until 1998. Between 1998 and 2004 he held senior executive positions with Tata Administrative Service and Tata Financial Services, a division of Tata Sons Limited.The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of the contents of this press release.
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