Calico Announces Non-Brokered Private Placement Financing

VANCOUVER, May 24, 2011 /CNW/ - Calico Resources Corp. (TSX-V: CKB) (the "Company" or "Calico") is pleased to announce a non-brokered private placement of 2,500,000 units at a price of $0.50 per unit, with an overallotment option of an additional 15%.  Each unit (a "Unit") will consist of one common share and one-half of one share purchase warrant.  Each full warrant ("Warrant") will be exercisable into one additional common share at a price of $0.60 per share for a period of two years from the closing date ("Closing Date") of the financing.

The Company may pay a finder's fee in connection with the private placement to certain parties who are instrumental in introducing investors to the Company.  The finder's fee shall be equal to 5% of the amount of gross proceeds raised, payable in cash.

The private placement and finder's fees are subject to acceptance by the TSX Venture Exchange.

The net proceeds will be used to explore and drill the Company's Grassy Mountain Project which it optioned from Seabridge Gold Inc. and is located in Malheur County, Oregon, approximately 70 miles west of Boise, Idaho and 22 miles south of Vale, Oregon and for general working capital.

On behalf of the Board,

William S. Wagener
President and CEO

Cautionary Statement This document contains "forward-looking statements" within the meaning of applicable Canadian securities regulations.  All statements other than statements of historical fact herein, including, without limitation, statements regarding exploration plans and other future plans and objectives, are forward-looking statements that involve various risks and uncertainties.  There can be no assurance that such statements will prove to be accurate and future events and actual results could differ materially from those anticipated in such statements.  Important factors that could cause actual results to differ materially from our expectations are disclosed in the Company's documents filed from time to time via SEDAR with the Canadian regulatory agencies to whose policies we are bound.

"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."

SOURCE CALICO RESOURCES CORPORATION

For further information:

Terri Anne Welyki - Vice-President of Corporate Development - 604-681-6855

Organization Profile

CALICO RESOURCES CORPORATION

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890