Press release from TheNewswire.ca
CANADA GAS ANNOUNCES COMPLETION OF PRIVATE PLACEMENT AND PROPOSED NAME CHANGE TO CANADA RARE EARTHS INC.
Monday, February 07, 2011
CANADA GAS ANNOUNCES COMPLETION OF PRIVATE PLACEMENT AND PROPOSED NAME CHANGE TO CANADA RARE EARTHS INC.18:33 EST Monday, February 07, 2011(via Thenewswire.ca) Vancouver, British Columbia, Canada - February 7th, 2011 - Canada Gas Corp. (TSX.V: CJC; FSE: YXEN; OTC-BB: CJCFF) ("Canada Gas" or the "Company") is pleased to announce that it has completed the private placement of 1,833,330 units of the Company at a price of $0.15 per unit for total gross proceeds of $275,000. Each unit consisted of one common share and one non-transferable share purchase warrant. Each warrant entitles the holder to purchase one common share of the Company for a period of 2 years from the closing date at a price of $0.25 per share. All of the securities are subject to a hold period expiring June 3, 2011. The company's main focus in 2011 will be the recently acquired Goeland Rare Earth Element ("REE") Property. The Goeland Property consists of 47 mining claims within and adjacent to the Montviel Carbonatite Complex. Historic exploration at Montviel has revealed strong potential for rare earth element, niobium and phosphate mineralization. The Montviel Carbonatite Complex encompasses six main geological units: Pmtv 1 through 6. To date, almost all of the anomalous REE, niobium and phosphate values have been encountered within Pmtv 5, which is composed of Ferrocarbonatite, Apatite-bearing Ferrocarbonatite, Silicocarbonatite, and Pyrrhotite-bearing Calciocarbonatite. The Goeland Property consists of two claim groups; one on the west side of the complex and one on the east side. The western group consists of 23 claims (1,265 hectares) and covers one of the two main areas within the complex underlain by unit Pmtv 5. The eastern claim group consists of 22 claims (1,210 hectares) and is covered with thick overburden. Geomega Resources Inc. (TSX-V: GMA) recently announced that it has completed 5 holes of a 10,000 metre drill program to test mineralization associated with Pmtv 5 within the central part of the complex along with other satellite targets. Lab analysis for the first 2 of these holes is expected shortly. The Goeland Property is easily accessible via a network of logging roads. The principal exploration target for the property is Carbonatite hosted REE mineralization, similar to Commerce Resources' (TSX-V: CCE) Ashram REE Zone at the Eldor Property, northern Quebec or the ST1 REE Zone at Hudson Resources' (TSX-V: HUD) Sarfartoq Property in Greenland. Carbonatite-related deposits are a major host for REEs worldwide and have been proven to produce saleable rare earth concentrates and oxides. Three of the most advanced rare earth projects currently under development: Molycorp's (NYSE: MCP) Mountain Pass Deposit, Lynas's (ASX: LYC) Mt. Weld Deposit and Rare Earth Element Resources' (TSX-V: RES) (AMEX: REE) Bear Lodge Deposit; all are hosted by Carbonatites. The Company also announces that it proposes to change its name to "Canada Rare Earths Inc." and expects to be able to complete the name change process and have its shares trading under the new name within the next few weeks. The name change is subject to TSX Venture Exchange approval and completion of related regulatory filings. For more information on Canada Gas, please visit www.canadagas.ca or call 604.685.5851. 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. On Behalf of the Board, CANADA GAS CORP. "Chad McMillan" President & CEO This communication to shareholders and the public contains certain forward-looking statements. Actual results may differ materially from those indicated by such statements. All statements, other than statements of historical fact, included herein, including, without limitations statements regarding future production, are forward looking statements that involve various risks and uncertainties. There can be no assurance that such statements will prove to be accurate and actual results and future events could differ materially from those anticipated in such statements. Neither the 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. Copyright (c) 2011 Thenewswire.ca - All rights reserved.