VANCOUVER, BRITISH COLUMBIA--(Marketwired - May 31, 2013) - Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana"), has applied to the Alberta Securities Commission to approve a management cease trade order ("MCTO"). If approved, it is anticipated that the MCTO will be issued effective June 3, 2013. The Company anticipates it may be unable to file its annual financial statements, management discussion and analysis and related Chief Executive Officer and Chief Financial Officer certificates for its fiscal year-ended January 31, 2013 (the "Required Filings") before the May 31, 2013 filing deadline (the "Filing Deadline").
Through the process of completing the Cancana's financial statements, the Company's auditors have raised an issue with respect to the consolidation of an investment currently held by the Company and the applicable accounting treatment in respect of this holding. The Company has been working diligently with its auditors to remedy the situation in advance of the deadline, however Cancana has concluded that its auditor will not be able to complete the audit within the allotted timeframe and as such the Required Filings cannot be made by the Filing Deadline.
The Company anticipates that it will be in a position to remedy the default within the two-month time allotted that the Company has applied for under the MCTO and file the Required Filings on or before July 30, 2013. The MCTO restricts all trading in securities of the Company, whether direct or indirect, by management of the Company. The MCTO will be in effect until the Required Filings are filed.
The Company intends to satisfy the provisions of the alternative information guidelines set out in sections 4.3 and 4.5 of National Policy 12-203 Cease Trade Orders for Continuous Disclosure Defaults so long as the Required Filings are outstanding.
The Company has not taken any steps towards any insolvency proceeding and the Company has no material information to release to the public.
About Cancana Resources Corp.
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.