VICTORIA, BRITISH COLUMBIA--(Marketwire - Feb 15, 2013) - 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 classes.
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 to 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 future endeavours."
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 markets.
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 website.
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.