Canaco Resources Inc.

Canaco Resources Inc.

December 04, 2007 06:00 ET

Canaco Acquires a 200 Sq Km Handeni Gold Property - Tanzania

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Dec. 4, 2007) - Canaco Resources Inc. (TSX VENTURE:CAN) is pleased to announce the Company has concluded a re-negotiation of the Company's option agreement with Midlands Minerals Corporation ("Midlands") on the New Kilindi prospect, located in the Handeni District, 160 kilometres northwest of the city of Morogoro in the Tanga Region of Tanzania.

Through an arrangement with Midlands, Canaco has reconfigured its landholdings in the Handeni area and has acquired a 100% interest in a 200 sq km prospecting license that will now form part of the Handeni Project, the core of Canaco's exploration program in the region. In exchange for this right, Canaco has relinquished its interest in the non-core peripheral properties, but has not changed other provisions of the agreement with Midlands.

"Relinquishing the prospective ground that is part of the large (2,000 square kilometre) New Kilindi property that could not realistically be scheduled for exploration over the short-term, in exchange for a greater interest in a 200 square kilometre license adjoining Canaco's Magambazi prospect, will allow Canaco to better focus its exploration efforts," said Andrew Lee Smith, Canaco's Chairman and CEO. "This re-organization of the Handeni Project exploration assets has been accomplished with the co-operation of Midlands and Canaco looks forward to further developing our ongoing working relationship in Tanzania."

The prospecting license has been granted and with the issuance of the prospecting license, Canaco will be the sole and beneficial owner of 100% undivided right title and interest in the Handeni property. All applicable fees have been paid in relation to the license. The transaction is conditional on the completion of a revision (as described above) to the existing option agreement between Midlands and Canaco, on the completion of due diligence with respect to title and TSX approval.

The planning, execution and quality control programs at the Handeni Project are under the supervision of Andrew Lee Smith, P.Geo. Mr. Smith is a qualified person as defined by National Instrument 43-101.

Additional information on Canaco, including technical reports and other public documents are available on SEDAR at or from the Company's website at

Canaco Resources is an emerging junior gold exploration company trading on the TSX Venture Exchange. The Handeni Project consists of a consolidated package of gold prospects assembled through option agreements with Midlands Minerals, Douglas Lake Minerals and Magambazi Gold Mines Ltd.

The Company relies on litigation protection for "forward-looking" statements. Forward-Looking Statements: This press release contains forward-looking statements that are based on the Company's current expectations and estimates. Forward-looking statements are frequently characterized by words such as "plan", "expect", "project", "intend", "believe", "anticipate", "estimate", "suggest", "indicate" and other similar words or statements that certain events or conditions "may" or "will" occur, and include, without limitation, statements regarding the obligations of the Company under the Option Agreement and the Company's plans with respect to the exploration and development of its projects. Such forward-looking statements involve known and unknown risks, uncertainties and other factors that could cause actual events or results to differ materially from estimated or anticipated events or results implied or expressed in such forward-looking statements. Any forward-looking statement speaks only as of the date on which it is made and, except as may be required by applicable securities laws, the Company disclaims any intent or obligation to update any forward-looking statement, whether as a result of new information, future events or results or otherwise. Forward-looking statements are not guarantees of future performance and accordingly undue reliance should not be put on such statements due o the inherent uncertainty therein. No independent consultant has rendered an expert opinion on the property.

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

Contact Information

  • Canaco Resources Inc.
    Andrew Lee Smith
    Chairman and CEO
    (604) 488-0822 or 1-866-488-0822
    Canaco Resources Inc.
    Nick Watters
    Investor Relations
    (604) 488-0822 or 1-866-488-0822