Cancana & Rio Madeira Agree to Extension of MOU
VANCOUVER, BRITISH COLUMBIA--(Marketwired - April 30, 2013) - Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") and Rio Madeira Comercio Importacao E Exportacao De Minerios, ("Rio Madeira") have provisionally agreed in principal to an extension (the "Extension") of the previously announced exclusive Memorandum of Understanding (the "MOU"), announced on February 8, 2013, to purchase Rio Madeira in the State of Rondonia, Brazil.
The exclusive MOU announced on February 8th, 2013 between Cancana and Rio Madeira is for the 100% acquisition of the Rio Madeira share capital and all of its associated assets, mineral claims and operations. Pursuant to the terms of the MOU, this acquisition is subject to the successful completion of due diligence, financing and receipt of all applicable regulatory approvals, and was to expire on April 30, 2013. However, as of April 29th 2013, both Cancana and Rio Madeira have provisionally agreed, in principal, to an extension for the completion of the acquisition by no later than June 24, 2013, which shall be subject to the achievement of certain specific milestones to be met within this time frame, including the negotiation and finalization of the terms of the definitive purchase agreement in respect of the acquisition by June 17, 2013.
As announced on March 21, 2013 Canacana has signed an engagement letter with Euro Pacific Canada Inc. and Jennings Capital Inc. as co-bookrunners and co-lead agents (the "Agents"), for the financing of the Rio Madeira acquisition and in this respect the Agents recently completed an independent analyst trip to Brazil with a review and site visits of the Rio Madeira operations and facilities and Cancana's Valdirão greenfield project.
As a result of this due diligence visit by the analysts, Cancana is now working diligently with its Agents to affect the next stage of this financing which will be seeking direct commitments from potential investors. Cancana believes that the Extension provides for sufficient time for certain investors to make their own site visits as well as completion of the financing of this acquisition.
The Company anticipates a review of financing offers in the month of May, 2013 and then moving to closing the financing on or about June 24 2013.
Andrew Male, President & CEO of Cancana, commented; "I am happy that after lengthy and on-going discussion with the partners of Rio Madeira they have agreed to the Extension. The partners were understanding of the challenges of the market conditions and the associated timing of trying to consummate a transaction of this nature. We continue to share a genuine relationship that will help close a transformational acquisition for Cancana and I would like to personally thank them for their efforts and support. "
Cancana Resources Corp. is an exploration stage company 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 website: www.cancanacorp.com
Issued on behalf of the Board of Directors of Cancana Resources Corp.
Andrew Male, CEO and Director
The information in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and applicable Canadian securities laws. When used in this release, words such as "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.
