Cancana Closes C$1.7 Million Private Placement
07 März 2014 - 1:46AM
Marketwired
Cancana Closes C$1.7 Million Private Placement
TORONTO, ONTARIO--(Marketwired - Mar 6, 2014) - Cancana
Resources Corp. (TSX-VENTURE:CNY) (the "Company" or "Cancana") has
closed a non‐brokered private placement of Units.
Cancana is pleased
to announce that it has closed today the non‐brokered private
placement offering (the "Offering") previously announced in the
Company's press release of February 25, 2014 (the "February 2014
Release"), for aggregate gross proceeds of C$1,726,138.35. The
Company issued an aggregate of 6,393,105 units (each a "Unit") at a
price of C$0.27 per Unit. Each Unit consists of one common share in
the capital of the Company (a "Common Share") and one common share
purchase warrant (a "Warrant"). Each Warrant entitles the holder
thereof to acquire one Common Share of the Company at a price of
C$0.34 until March 6, 2016.
In connection with
the Offering, an aggregate amount of C$77,494.12 in cash finder's
fees are payable to certain eligible arm's length persons and an
aggregate of 174,831 non‐transferable finder's warrants (the
"Finder Warrants") are issuable to certain eligible arm's length
persons. Each Finder Warrant is exercisable into a Unit at an
exercise price of C$0.27 per Unit for a period of twenty‐four (24)
months from the closing of the Offering.
All securities
issued and issuable pursuant to the Offering, including the Common
Shares and Warrants comprising the Units and the Common Shares
underlying the Warrants, the Finder Warrants, and the securities
underlying the Finder Warrants, are subject to a four (4) month and
one (1) day statutory hold commencing from closing of the Offering.
The Offering is subject to TSX Venture Exchange ("TSXV") final
acceptance of the requisite regulatory filings. The proceeds raised
from the Offering will be used for general working capital
purposes.
As disclosed in the
February 2014 Release, Ferrometals BV ("Ferrometals") purchased an
aggregate of 4,167,180 Units in the Offering, for gross proceeds to
Cancana in the amount of C$1,125,138.60. Upon closing of the
Offering, Ferrometals owns an aggregate of 5,357,656 Common Shares
and an aggregate of 5,357,656 common share purchase warrants,
including the Warrants issued under the Offering and the common
share purchase warrants issued to Ferrometals in the private
placement of the Company previously disclosed in the February
Release. Accordingly, Ferrometals currently holds approximately 11%
of the issued and outstanding Common Shares (or approximately 19.8%
of the Company's then issued and outstanding Common Shares in the
event that Ferrometals exercises all of the warrants of the Company
held by it).
Andrew Male,
President and CEO of Cancana, commented: "The closing of this
tranche of the private placement continues to validate the market's
view of our business strategy and the future prospects of our
operations in Brazil. Cancana has continued to develop Valdirâo,
the Company's green‐field project, since early November 2013 and
the progress being made and knowledge we are gaining from this
activity continues to be exciting."
In connection with
the Offering, certain directors and officers of the Company
acquired an aggregate of 240,000 Units. The participation of such
directors and officers in the Offering constitutes a related party
transaction pursuant to Multilateral Instrument 61‐101 - Protection
of Minority Security Holders in Special Transactions ("MI 61‐101").
The Company is exempt from the formal valuation and minority
approval requirements of MI 61‐101 in reliance on Sections 5.5(b)
and Sections 5.7(b), respectively, of MI 61‐101.
About Cancana
Cancana is an
exploration stage company that has transitioned into production in
Brazil 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,
President, CEO and Director
This press
release contains forward‐looking information under Canadian
securities legislation. forward‐looking information includes, but
is not limited to, statements with respect to completion of the
Offering, the development potential and timetable of the Rio
Madeira project and Cancana's other assets in Brazil and
Canada; Cancana's ability to raise additional funds necessary; the
future price of manganese, the estimation of mineral reserves and
mineral resources; conclusions of economic evaluation; the
realization of mineral reserve estimates; the timing and amount of
estimated future production, development and exploration; costs of
future activities; capital and operating expenditures; success of
exploration activities; mining or processing issues; currency
exchange rates; government regulation of mining operations; and
environmental risks. Generally, forward‐looking statements can be
identified by the use of forward‐looking terminology such as
"plans", "expects" or "does not expect", "is expected", "budget",
"scheduled", "estimates", "forecasts", "intends", "anticipates" or
"does not anticipate", or "believes", or variations of such words
and phrases or statements that certain actions, events or results
"may", "could", "would", "might" or "will be taken", "occur" or "be
achieved". Forward‐looking statements are based on the opinions and
estimates of management as of the date such statements are made.
Forward‐looking statements are subject to known and unknown risks,
uncertainties and other factors that may cause the actual results,
level of activity, performance or achievements of Cancana to be
materially different from those expressed or implied by such
forward‐ looking statements, including but not limited to those
risks described in the annual information form of Cancana and in
its public documents filed on SEDAR from time to time. Although
management of Cancana has attempted to identify important factors
that could cause actual results to differ materially from those
contained in forward‐looking statements, there may be other factors
that cause results not to be as anticipated, estimated or intended.
There can be no assurance that such statements will prove to be
accurate, as actual results and future events could differ
materially from those anticipated in such statements. Accordingly,
readers should not place undue reliance on forward‐looking
statements. Cancana does not undertake to update any
forward‐looking statements, except in accordance with applicable
securities laws.
Canana Resources Corp.Andrew MalePresident, CEO and Director+1
403 269 2065cancana.ir@cancanacorp.comwww.cancanacorp.com
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