Canaf Group Inc.
TSX VENTURE : CAF

Canaf Group Inc.

October 25, 2007 13:57 ET

Canaf Group Terminates Acquisition of Zimbabwe Properties

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 25, 2007) - Canaf Group Inc. (TSX VENTURE:CAF) announced today that negotiations for the acquisition of Great Lakes Minerals and the associated Zimbabwean assets have been terminated due to increased political risk.

The initial agreement with Midas Trust was adjusted after the announcement of the new Indigenization and Empowerment Bill passed through parliament in Harare last month. Both Midas Trust and Canaf remain on good terms and may choose to revisit the acquisition potential of Great Lakes Minerals at some time in the future.

"After much discussion, we have decided that this acquisition is not in the best interests of our shareholders at this time," stated David Way, President and CEO. "We are committed to providing value to our shareholders and will focus on our now 90%-owned coal processing facility, with a view of increasing both our ownership stake to 100% and the overall profitability of the plant. We will continue to search for new high-potential mining and mining related opportunities in Africa."

David Way, President and CEO

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.

Contact Information

  • Canaf Group Inc.
    Brad Jefferson
    (604) 767-3977
    (604) 682-2275 (FAX)
    or
    Ascenta Capital Partners Inc.
    Bryson Goodwin
    Investor Relations
    (604) 684-4743 ext. 239 or Toll Free: 1-866-684-4209
    (604) 939-1292 (FAX)
    Email: bryson@ascentacapital.com