Cancana Resources Corp (C:CNY)
Shares Issued 16,409,953
Last Close 3/19/2012 $0.49
Tuesday March 20 2012 - News Release
Dr. William Pfaffenberger
CANCANA ANNOUNCES PLAN OF ARRANGEMENT FOR ASSET SPIN-OFF
Cancana Resources Corp.'s board of directors has approved a resolution to undertake a plan of arrangement (POA), which will involve the divestiture or spinoff of certain assets into various subsidiary companies.
The Cancana Board have decided to act upon this POA in an effort to differentiate its mineral assets into specific entities. By undertaking this POA, Cancana the parent company, will remain a Manganese centric exploration and production entity with assets in Brazil. The POA process enables Cancana to create multiple spin-off companies that will have the same shareholder ratio composition as that of the parent company, Cancana. This strategy will enable Cancana to spin-off and divest its gold and diamond assets into an entity that will be primarily focused on this mineral mix. 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 as of the Record Date, which is yet to be set by Cancana.
The Board and Management believes the POA, when consummated, will provide a platform for growth for the shareholders of Cancana as it will provide an immediate interest in several different companies, and afford a secure and expedient development path for the development of Cancana's various mineral properties. Management also intends to implement an expanded exploration program on the various mineral properties.
Cancana cautions that no binding agreement has yet been reached and the execution of any such agreement is conditional upon, among other things, completion of satisfactory due diligence and the receipt of all necessary approvals. There is no assurance any agreement will be concluded with respect to the transaction described above or any other transaction, or that any transaction if agreed upon will be completed.
Cancana does not intend to make further announcements or communications regarding this potential transaction until a definitive agreement is reached, or discussions are terminated without such an agreement being reached.
We seek Safe Harbor.
