Cancana Announces Strategic Plan to Spin Off of Its Gold and Diamond Assets and
Sets Date for the Annual Meeting of Its Shareholders
VICTORIA, BRITISH COLUMBIA -- (Marketwire) -- 02/15/13 -- Cancana
Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") is
pleased to announce that its annual meeting of its shareholders will
be held on April 12, 2013 in Victoria, BC. The Company is also
pleased to announce its plan to spin off its gold and diamond assets.
The Board of Directors of the Company has determined that would it be
in the best interest of the Company to segregate its minerals classes
into new and distinct companies by way of a spin-off strategy. The
objective of this plan is to separate the gold and diamond
opportunities from the Company's manganese opportunities. In turn, it
is the intent of the Company that each of the spun-off entities will
then become a "pure play" in nature and not have co-mingled mineral
As part of this strategic plan Cancana intends to create a number of
spin-off companies. Cancana shareholders will be issued common shares
in the subsidiary entities that will be based on a share exchange
ratio yet to be determined. Shareholders will be defined as those
holders of common shares of Cancana as of the record date, which has
yet to be set by the Company. The Board of Directors of the Company
will determine the date for the distribution of shares from the
spin-off companies and a news release announcing the record date will
be issued at that time. This strategic plan remains subject to
shareholder and regulatory approval.
The Company regretfully accepts the resignation of David Tam from the
Board of Directors and as Secretary of Cancana effective immediately.
Mr. Tam joined the Company in May of 2009, and contributed to the
successful development of the Company in its transition from
exploration to pre-production. Management and the Board of Directors
extend its thanks to Mr. Tam for his substantial efforts and
dedicated service to Cancana over the past years.
Mr. Tam comments "I have enjoyed working with the management team at
Cancana and serving with the Board of Directors and as an officer of
the Company. Over the past few years the Company has made significant
progress in its efforts to provide value t
o its shareholders. As the
Company focuses on taking its manganese properties to production, I
am confident that the management together with the Board of Directors
will continue to move Cancana forward to completing its transition
into a full production company."
CEO, President and Director Mr. Andrew Male added; "On behalf of the
Board of Directors, I would like to thank Mr. Tam for his commitment,
dedication and assistance to the Company and wish him well in his
The Company is also pleased to announce that it has retained Rajeev
Dewan of WeirFoulds LLP in Toronto to act as its Canadian capital
markets legal advisor.
Mr. Dewan is a corporate finance lawyer with WeirFoulds LLP in
Toronto. Mr. Dewan previously worked in both the UK and the Middle
East with the Financial Services Authority and at a top-tier
international law firm and has significant transactional and
regulatory experience in the Canadian and international capital
markets. Mr. Dewan has been advising the company in connection with
securities law matters and has an active practice in advising high
growth Canadian companies on cross-border transactions in emerging
Further to the news release announcing the closing of a private
placement (the "Private Placement") on January 31, 2013 the TSX
Venture Exchange, upon review, has requested that the Company
re-price the 5,480,900 warrants (the "Warrants") issued pursuant to
the Private Placement from an exercise price of $0.25 per Warrant to
an exercise price of $0.27 per Warrant. In addition, further to the
Company's news release dated January 31, 2012, the Company announces
an update to the fees paid to certain eligible finders in connection
with Private Placement.
The company issued an aggregate of 263,400 finder's warrants (the
"Finder Warrants") and paid an aggregate amount of $55,240 in cash
fees to certain eligible arm's length finders. Additionally, the
263,400 Finder Warrants issued pursuant to the private placement have
also been revised from an exercise price of $0.25 to an exercise
price of $0.27. Each Finder Warrant remains exercisable for a unit on
the same terms as the units issued in the Private Placement (with the
warrants issuance upon exercise of the finder's warrants having an
exercise price of $0.27). All other terms of conditions of the
Warrants and Finder Warrants remain the same.
Cancana is an exploration stage company that is transitioning into
production with assets in Brazil and Canada. The Company has been
seeking projects that expand its resource base and provide for near
term production and revenue. All available resource reports and
information on the Company's properties are located on the Company
Issued on behalf of the Board of Directors of Cancana Resources Corp.
Mr. Andrew Male, CEO & Director
Forward Looking Statements
The information in this news release may contain forward-looking
statements within the meaning of applicable Canadian securities laws,
Section 27A of the Securities Act of 1933 and Section 21E of the
Securities Exchange Act of 1934. When used in this release, words
such as "plan", "intends", "estimate", "expect", "anticipate" and
"believe" as well as similar expressions are intended to identify
forward-looking statements. Such statements are used to describe
management's future plans, objects, and goals for the Company and
therefore involve inherent risks and uncertainties. The reader is
cautioned that actual results, performance or achievements may be
materially different from those implied or expressed in such
statements, which speak only as of the date, the statements were
made. The Company does not update forward-looking statements
continually as conditions change. We seek safe harbour.
Neither the TSX Venture Exchange nor its Regulation Service Provider
(as that term is defined in the policies of the TSX Venture Exchange)
accepts responsibility for the adequacy or accuracy of this release.
Cancana Resources Corp.
+1 403 269 2065
CHF Investor Relations
Press spacebar to pause and continue. Press esc to stop.