Welcome!

News Feed Item

Cancana Shareholders Approve Rio Madeira Joint Venture and Cancana Closes US$5.7 Million Private Placement and Appoints a New Director

TORONTO, ONTARIO -- (Marketwired) -- 04/23/14 -- Cancana Resources Corp. (TSX VENTURE: CNY) (the "Company" or "Cancana") is pleased to announce that on April 17, 2014 the shareholders of Cancana (the "Shareholders") approved the Rio Madeira Transactions (as defined below), and that on April 23, 2014 Cancana closed non-brokered private placement offerings of Units and Debentures (each as defined below) with Ferrometals BV ("Ferrometals") for aggregate gross proceeds of CDN$1.7 million and US$4.15 million, respectively, and, effective immediately upon closing of the Offerings (as defined below), Anthony Julien, Chief Executive Officer of Ferrometals, was appointed to the board of directors of Cancana.

Shareholder Approval of Rio Madeira Transactions

At Cancana's special meeting of Shareholders held on April 17, 2014 (the "Meeting"), the Shareholders voted overwhelmingly in favour of the ordinary resolution (the "Resolution") approving the Rio Madeira Transactions (as defined in Cancana's management information circular dated March 18, 2014 (the "Circular")) and the creation of Ferrometals, a subsidiary of The Sentient Group, as a "control person" of the Company as such term is defined in the policies of the TSX Venture Exchange (the "TSXV"). Of the 15,750,203 Common Shares voted at the Meeting, approximately 99.9% voted in favour of the foregoing resolution. As further disclosed in the Company's press release dated April 15, 2014, the vote on the special resolution with respect to the transfer of the Company's interest in the mining claims owned by M L B de Nogueira EPP was withdrawn from the business of the Meeting and has been deferred until the Company's annual general meeting scheduled to be held on or about July 17, 2014.

Private Placement Financings

At the Meeting, the Shareholders voted in favour of the Joint Venture Financings (as defined in the Circular) as part of the Rio Madeira Transactions. These financings were previously disclosed by the Company in its December 20, 2013 and February 24, 2014 press releases. Accordingly, on April 23, 2014 the Company completed the Offerings and issued to Ferrometals the following:

1. An aggregate of 8,500,000 units (the "Units") at a price of CDN$0.20 per Unit. Each Unit consists of one (1) common share in the capital of the Company (a "Common Share") and one (1) Common Share purchase warrant (a "Warrant"), for aggregate gross proceeds of CDN$1.7 million (the "Equity Offering"). Each Warrant is exercisable into one (1) Common Share at a price of CDN$0.25 per Common Share and is exercisable for a period of two (2) years from the date hereof; and

2. A secured convertible debenture, (the "Debenture") for a purchase price of US$4.15 million (approximately CDN$4.58 million) (the "Debt Offering" and, collectively with the Equity Offering, the "Offerings"). The Debenture has a term of three (3) years and bears interest at a rate of 8% per annum. The principal of the Debenture is convertible, in whole or in part, into Common Shares at a price of CDN$0.20 per Common Share at the option of Ferrometals.

Upon closing of the Offerings, Ferrometals owns an aggregate of 13,857,656 Common Shares and an aggregate of 13,857,656 common share purchase warrants, including the Warrants issued under the Offerings and the common share purchase warrants issued to Ferrometals in the private placements of the Company previously disclosed in the Company's press releases of February 24, 2014 and March 6, 2014. Accordingly, Ferrometals currently holds approximately 24% of the issued and outstanding Common Shares on a non-diluted basis (or approximately 53.5% of the Company's then issued and outstanding Common Shares on a partially-diluted basis, assuming the exercise by Ferrometals of all of the warrants of the Company held by it and the conversion in full of the principal amount of the Debenture). As Ferrometals currently owns more than 20% of the Company's issued and outstanding Common Shares, Ferrometals is a "control person" of Cancana pursuant to the policies of the TSXV.

In connection with the Offerings, an aggregate amount of CDN$102,000 and US$166,000 in cash finder's fees are payable to certain eligible arm's length persons and an aggregate of 510,000 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 CDN$0.20 per Unit and is exercisable for a period of two (2) years from the date hereof.

All securities issued pursuant to the Offerings, including the Common Shares and Warrants comprising the Units and the Finder's Warrants and the Common Shares underlying the Warrants, the Debenture and any Common Shares issuable upon conversion of the Debenture, are subject to a four (4) month and one (1) day statutory hold commencing from the date of issuance. The Offerings are subject to TSXV final acceptance of requisite regulatory filings.

As further described in the Circular, US$5.5 million of the gross proceeds raised from the Offerings will be used by Cancana to purchase shares (quotas) of Rio Madeira Comercio Importacao e Exportacao de Minerios Ltda. ("Rio Madeira") to enable Cancana's participation in the Rio Madeira joint venture as previously disclosed. The balance of the gross proceeds raised from the Offerings will be used by the Company for general working capital.

Andrew Male, President and CEO of Cancana, commented: "We are happy to conclude this next step of the acquisition of Rio Madeira and Joint Venture with Ferrometals. This will conclude a total of in excess of $11.0 million in debt and equity financings since January 2013. The culmination of all these corporate activities allows the next stages of activity to occur. The exploration, research and production of the operations of the joint venture will begin to add corporate value in the near future."

Appointment of Director

As described in the Company's news releases of December 20, 2013 and February 24, 2014, pursuant to the terms of the Company's Revised Binding Term Sheet with Ferrometals and The Sentient Group, as its Rio Madeira future joint venture partner Cancana has granted Ferrometals certain board nomination rights, with such rights to take effect after closing of the Offerings. Cancana is pleased to announce that, effective today, Anthony Julien has been appointed to the Company's board of directors.

Mr. Julien, the CEO of Ferrometals, is developing industrial minerals projects in Brazil and the United States, to provide products to both the agricultural and steel industries. His business career is underpinned by energy and an entrepreneurial spirit refined by the experience of developing and selling various companies in IT, wholesale/distribution and media. He strengthened these capabilities with a move to enterprise level organizations when he sold his mobility software company to Epicor in 2009 and took on the global mobility sales responsibilities. Building on his global sales experience with Epicor, he joined SAP in 2011, focused on providing SAP mobility solutions to major accounts in retail, mining and energy. This experience fostered his interest in resource-based industries and created an opportunity to reconnect with The Sentient Group who funded his early entrepreneurial business success. Ferrometals' first major investment is the formation of Rio Madeira as a joint venture with Cancana to expand existing production and further develop Cancana's manganese-mining claims in Brazil. In addition to being CEO of Ferrometals, Mr. Julien will hold the position of chairman of Rio Madeira and holds the positions of CEO of Oregon Resource Corporation and CEO of Ferrometals Holdings.

About Cancana

Cancana is an exploration stage company that has transitioned 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: www.cancanacorp.com

For further information about Cancana, please visit the Company's website.

Issued on behalf of the Board of Directors of Cancana Resources Corp.

Andrew Male, President, CEO and Director

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release. 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 Financings, 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.

More Stories By Marketwired .

Copyright © 2009 Marketwired. All rights reserved. All the news releases provided by Marketwired are copyrighted. Any forms of copying other than an individual user's personal reference without express written permission is prohibited. Further distribution of these materials is strictly forbidden, including but not limited to, posting, emailing, faxing, archiving in a public database, redistributing via a computer network or in a printed form.

Latest Stories
@DevOpsSummit at Cloud taking place June 6-8, 2017, at Javits Center, New York City, is co-located with the 20th International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is no time to wait for long developm...
20th Cloud Expo, taking place June 6-8, 2017, at the Javits Center in New York City, NY, will feature technical sessions from a rock star conference faculty and the leading industry players in the world. Cloud computing is now being embraced by a majority of enterprises of all sizes. Yesterday's debate about public vs. private has transformed into the reality of hybrid cloud: a recent survey shows that 74% of enterprises have a hybrid cloud strategy.
"This is specifically designed to accommodate some of the needs for high availability and failover in a network managed system for the major Korean corporations," stated Thomas Masters, Managing Director at InfranicsUSA, in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
Infrastructure is widely available, but who’s managing inbound/outbound traffic? Data is created, stored, and managed online – who is protecting it and how? In his session at 19th Cloud Expo, Jaeson Yoo, SVP of Business Development at Penta Security Systems Inc., discussed how to keep any and all infrastructure clean, safe, and efficient by monitoring and filtering all malicious HTTP/HTTPS traffic at the OSI Layer 7. Stop attacks and web intruders before they can enter your network.
More and more brands have jumped on the IoT bandwagon. We have an excess of wearables – activity trackers, smartwatches, smart glasses and sneakers, and more that track seemingly endless datapoints. However, most consumers have no idea what “IoT” means. Creating more wearables that track data shouldn't be the aim of brands; delivering meaningful, tangible relevance to their users should be. We're in a period in which the IoT pendulum is still swinging. Initially, it swung toward "smart for smar...
Regulatory requirements exist to promote the controlled sharing of information, while protecting the privacy and/or security of the information. Regulations for each type of information have their own set of rules, policies, and guidelines. Cloud Service Providers (CSP) are faced with increasing demand for services at decreasing prices. Demonstrating and maintaining compliance with regulations is a nontrivial task and doing so against numerous sets of regulatory requirements can be daunting task...
Get deep visibility into the performance of your databases and expert advice for performance optimization and tuning. You can't get application performance without database performance. Give everyone on the team a comprehensive view of how every aspect of the system affects performance across SQL database operations, host server and OS, virtualization resources and storage I/O. Quickly find bottlenecks and troubleshoot complex problems.
Without a clear strategy for cost control and an architecture designed with cloud services in mind, costs and operational performance can quickly get out of control. To avoid multiple architectural redesigns requires extensive thought and planning. Boundary (now part of BMC) launched a new public-facing multi-tenant high resolution monitoring service on Amazon AWS two years ago, facing challenges and learning best practices in the early days of the new service. In his session at 19th Cloud Exp...
"We build IoT infrastructure products - when you have to integrate different devices, different systems and cloud you have to build an application to do that but we eliminate the need to build an application. Our products can integrate any device, any system, any cloud regardless of protocol," explained Peter Jung, Chief Product Officer at Pulzze Systems, in this SYS-CON.tv interview at @ThingsExpo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The cloud promises new levels of agility and cost-savings for Big Data, data warehousing and analytics. But it’s challenging to understand all the options – from IaaS and PaaS to newer services like HaaS (Hadoop as a Service) and BDaaS (Big Data as a Service). In her session at @BigDataExpo at @ThingsExpo, Hannah Smalltree, a director at Cazena, provided an educational overview of emerging “as-a-service” options for Big Data in the cloud. This is critical background for IT and data professionals...
Internet of @ThingsExpo has announced today that Chris Matthieu has been named tech chair of Internet of @ThingsExpo 2017 New York The 7th Internet of @ThingsExpo will take place on June 6-8, 2017, at the Javits Center in New York City, New York. Chris Matthieu is the co-founder and CTO of Octoblu, a revolutionary real-time IoT platform recently acquired by Citrix. Octoblu connects things, systems, people and clouds to a global mesh network allowing users to automate and control design flo...
You are moving to the Cloud. The question is not if, it’s when. Now that your competitors are in the cloud and lapping you, your “when” better hurry up and get here. But saying and doing are two different things. In his session at @DevOpsSummit at 18th Cloud Expo, Robert Reeves, CTO of Datical, explained how DevOps can be your onramp to the cloud. By adopting simple, platform independent DevOps strategies, you can accelerate your move to the cloud. Spoiler Alert: He also makes sure you don’t...
President Obama recently announced the launch of a new national awareness campaign to "encourage more Americans to move beyond passwords – adding an extra layer of security like a fingerprint or codes sent to your cellphone." The shift from single passwords to multi-factor authentication couldn’t be timelier or more strategic. This session will focus on why passwords alone are no longer effective, and why the time to act is now. In his session at 19th Cloud Expo, Chris Webber, security strateg...
"We are an all-flash array storage provider but our focus has been on VM-aware storage specifically for virtualized applications," stated Dhiraj Sehgal of Tintri in this SYS-CON.tv interview at 19th Cloud Expo, held November 1-3, 2016, at the Santa Clara Convention Center in Santa Clara, CA.
The WebRTC Summit New York, to be held June 6-8, 2017, at the Javits Center in New York City, NY, announces that its Call for Papers is now open. Topics include all aspects of improving IT delivery by eliminating waste through automated business models leveraging cloud technologies. WebRTC Summit is co-located with 20th International Cloud Expo and @ThingsExpo. WebRTC is the future of browser-to-browser communications, and continues to make inroads into the traditional, difficult, plug-in web co...