Monday, October 3, 2011 - VICTORIA, BC, CANADA - Cancana Resources Corp. (TSXV: CNY) (the "Company" or "Cancana") announces the completion for the acquisition of 85.55% Amazon Resources Limited, (“Amazon”), a privately held UK based company.
Cancana is pleased to announce that a total of 77,368,082 ordinary shares in the capital of Amazon, (“the Amazon Shares”), from participating shareholders of Amazon, representing 85.55% of the issued and outstanding Amazon Shares, were exchanged for a total of 4,444,798 common shares of Cancana at a deemed value of $0.41 per common share, (“the Common Shares”).
All of the Common Shares issued to Amazon shareholders are held in escrow pursuant the TSX Venture Exchange, (“TSXV”), Policy for Surplus Security Escrow Agreement for Tier 2 Issuers and are releasable over a 36 month period.
Mr. Christopher Morgan, Managing Director of Amazon commented: “The Directors and Shareholders of Amazon are very pleased to note that the merger with Cancana has been approved by the TSXV after a lengthy period of discussion and due diligence. We believe that there is considerable synergy between the assets and management of the two companies that can be developed going forward. We look forward to working with the Cancana Board and staff to achieve these goals.”
Mr. William Pfaffenberger, Chairman and CEO of Cancana stated: “The conclusion of this transaction is an exciting time for Cancana as we envision being able to bring Parauna, Amazon’s primary asset, back into commission and potentially realize immediate cash flow. The hard work that Amazon has put into this project to date is demonstrated by the infrastructure already in place at Parauna. The Board and Management of Cancana also look forward to working with the team at Amazon.
Through this transaction, Cancana has acquired 2 alluvial diamond and gold properties and two Options Amazon held on further diamond and gold claims. The primary property for Amazon is Paruana. This consists of 5 contiguous claims along the Parauna River, with a processing facility located adjacent to the claims. Parauna will require further exploration work as well as further investment in order to fine tune the processing facility and operations as well as beginning an exploration program. The Parauna mine and processing plant are located 21 km from the town of Gouveia, approximately 250 km north of Belo Horizonte, Minas Gerais State, Brazil. The property lies within the Diamantina region, which has produced most of Brazil’s diamonds since large-scale mining commenced in 1729, and between the late 18th and early 19th centuries was the world’s foremost diamond producer. The second property named Pitomba is located near Espigao, in the state of Rondonia.
Cancana Resources Corp., is an exploration stage company with assets in Brazil and Canada, has primarily focused on diamond, manganese and gold resource properties. Recently 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.
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For further information about Cancana Resources Corp., please visit the Company’s website or contact the Company at +1 403 269 2065 or preferably email: email@example.com
Issued on behalf of the Board of Directors of Cancana Resources Corp.
Dr. William (Bill) Pfaffenberger CEO and Director