TORONTO, ONTARIO--(Marketwired - Sept. 27, 2013) - Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") is pleased to announce that it has agreed to a provisional extension to the Share Purchase Agreement, ("SPA"), with the shareholders of Rio Madeira Comercio Importacao E Exportacao De Minerios, ("Rio Madeira").
Cancana and Rio Madeira have agreed to extend the Closing and Completion Date of the SPA to October 4, 2013. The reason for the extension to October 4, 2013 is to allow both Cancana and Rio Madeira to consider financing options, structures and proposals. Cancana has been marketing financing for the development of its own green-field project, Valdirão, as well as the acquisition financing needed to conclude the purchase of Rio Madeira.
At this time it is contemplated that Cancana will be making an alternate or modified proposal to Rio Madeira, for the acquisition of Rio Madeira, on or before October 4, 2013 that will consider some of the conditions and requirements that financing proposals already presented to Cancana may and will require. Rio Madeira has expressed their willingness to consider all aspects have provisionally agreed to modifications of terms as needed to facilitate financing.
Andrew Male, President & CEO of Cancana, commented; "I would like to start by thanking the Partners of Rio Madeira for their ongoing cooperation and positive involvement in this process. It has and is a pleasure working with them. We are keen to conclude this acquisition as soon as possible however the complexity of the transaction is taking time. In the interim we have continued to make good progress with our green-field project, Valdirão and will be providing an update on this in the coming weeks. Cancana will be in discussions with Rio Madeira over the next week in order to attempt a conclusion of terms and conditions needed for successful financing. We are encouraged that this will be a positive exchange of thoughts after having spent considerable time with Rio Madeira discussing all of these issues on the 26th of September."
Cancana Resources Corp. 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 website.
Issued on behalf of the Board of Directors of Cancana Resources Corp.
Mr. Andrew Male, CEO & Director
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