CanAsia Industries Corporation
OTC Bulletin Board : CANSF

CanAsia Industries Corporation

June 09, 2009 03:01 ET

CanAsia Signs Agreement to Acquire Gold/Silver Property in Mexico

VANCOUVER, BRITISH COLUMBIA--(Marketwire - June 9, 2009) - CanAsia Industries Corporation (TSX VENTURE:CAJ)(OTCBB:CANSF)(FRANKFURT:45C) (the "Company" or "CanAsia") is pleased to announce that it entered into a letter agreement dated June 4, 2009 with Exploraciones Las Joyas S.A. de C.V. ("Exploraciones"), a private corporation incorporated pursuant to the laws of Mexico, and the two shareholders of Exploraciones, (the "Shareholders"). Under the terms of the letter agreement, the Company has agreed to enter into a definitive agreement to purchase all of the issued and outstanding common shares in the capital of Exploraciones from the Shareholders in consideration for the Company issuing 8,000,000 common shares to the Shareholders. The proposed acquisition will be negotiated and carried out by the parties dealing at arm's length to one another.

Conditions of Closing

The parties have agreed to enter into a definitive agreement on or before June 15, 2009, and have agreed to close the proposed transaction on or before July 31, 2009, or such other date as the parties may agree to in writing. Completion of the proposed acquisition will be subject to certain conditions including: (a) completion of each party's satisfactory due diligence review of the other, including the financial condition, business and properties of each; (b) receipt of all necessary regulatory approvals, including those of the TSX Venture Exchange (the "Exchange"); (c) completion of audited and interim financial statements of Exploraciones as required by applicable securities laws; and (d) the closing of the definitive agreement.

Business of Exploraciones

Exploraciones is a private company incorporated pursuant to the laws of Mexico and is engaged in the business of mineral exploration in Mexico. Exploraciones is the sole legal and beneficial owner of three mineral claims covering an area of approximately 44,522 hectares, located north and northwest of the El Oro - Tlalpujahua Gold/Silver belt in the states of Guanajuato and Michoacan Mexico (collectively, the "Property"). The Property is subject to a 1.5% net smelter royalty.


Subject to Exchange approval, the Company intends to issue the maximum payable finders fee in common shares to one finder upon the closing of the definitive agreement in consideration for services provided by the finder with respect to the transaction. The finder is not a Non-Arm's Length Party and such common shares will be issued pursuant to an exemption under applicable securities laws and will be subject to a hold period as required by applicable securities laws.

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Graeme Sewell, Director

CanAsia Industries Corporation

This press release contains projections and forward-looking information that involve various risks and uncertainties regarding future events such as the entry into and the closing of the definitive agreement with Exploraciones. Such forward-looking information can include statements based on current expectations involving a number of risks and uncertainties and are not guarantees of future performance of CanAsia such as the willingness of the parties to close the transaction, satisfactory results of the due diligence investigation on the parties to the transaction, current economic conditions and the state of mineral exploration and mineral prices in general. These risks and uncertainties could cause actual results and CanAsia's plans and objectives to differ materially from those expressed in the forward-looking information. Due to conditions precedent to closing, and the risk that these conditions precedent will not be satisfied, CanAsia can offer no assurance that it will close the definitive agreement. These and all subsequent written and oral forward-looking information are based on estimates and opinions of management on the dates they are made and expressly qualified in their entirety by this notice. Except as required by law, CanAsia assumes no obligation to update forward-looking information should circumstances or management's estimates or opinions change.

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

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