Canaf Group Inc.
TSX VENTURE : CAF

Canaf Group Inc.

September 20, 2007 18:24 ET

Canaf Group Inc. Announces Private Placement Update, Appointment of Director, Further Quantum Interest Acquisition & Shares for Debt

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Sept. 20, 2007) - Canaf Group Inc. (TSX VENTURE:CAF) ("Canaf" or the "Company") announced today that it has, subject to regulatory approval, undertaken the following:

Private Placement

The Company has completed its second closing of its current private placement which consisted of 8,000,000 units at the price of $0.25 for gross proceeds of $2,000,000. Each unit consists of one common share and one half of a common share purchase warrant. Each whole warrant entitles the holder to acquire one additional common share at the price of $0.35 for a period of one year from the date of closing. If the shares of Canaf trade at $0.60 or greater over a 10 trading day period, which may include days of no trades, then Canaf reserves the right to accelerate the termination date by press release to 14 days from the date of the press release. The common shares and warrants are subject to a restricted period ending December 10, 2007 for the first 4,518,500 units and January 14, 2008 for the balance of 3,481,500 units.

A 7% finders fee is payable to brokers who assisted Canaf with the financing, including Haywood Securities Ltd. of Vancouver BC. Proceeds from the first two closings will be used for working capital and the repayment of certain debt of its 85% owned South African subsidiary, Quantum Screening and Crushing (Proprietary) Limited, ("Quantum"). The balance of the funds to be raised will go to the closing of the previously announced Zimbabwean acquisition and other corporate opportunities. The Company is continuing to raise funds under this private placement, with the final closing of up to $6,000,000 scheduled to occur on or before September 30, 2007.

New Director

The Company has appointed Rod Samuels, of Vancouver, BC, to the Board of Directors. The Board of Directors now consists of Brad Jefferson, Mike Hopley, Zenaido Manalo, David Way and Rod Samuels.

Rod Samuels is a Canadian Consulting Metallurgist and Project Manager with 36 years of Canadian and International (China, Panama & Mexico) experience in mineral processing, quality control, production metallurgy, crushing/recovery plant design, and mining pollution control. He has worked in project and construction management including Fraser Laboratories (owned), Eastmaque Gold Mines Ltd., Greenstone Resources Ltd., South East Asia Resources, Viceroy Resources Corp., Trillion Resources Ltd., Standard Mining Corp., and Broadlands Resources. From 2001 to 2006 he lived and worked on the Indarama gold mine, which is the principle asset of the Company's proposed Zimbabwean acquisition. Since January 2007, he has been the chief operating officer of ICS Copper, a TSX Venture listed company.

Increased Interest in Quantum Screening and Crushing (Proprietary) Ltd.

The Company has entered into an agreement with an arms-length share holder of Quantum to purchase another 5% of that company. This purchase will bring the Company's interest in Quantum to 90%. The agreed terms call for the payment of the purchase price of R1,000,000 ($143,400) by the issuance of 573,600 common shares at an issue price of $0.25.

Shares for Debt

The Company has agreed with its CEO that his shareholder advances, totalling $872,090, will be converted into shares at a price of $0.25. By eliminating this debt on the balance sheet, the board of directors feel that this will put the Company on better financial footing.

About Canaf Group

Canaf is a diversified mineral resource company with a strategic focus on mineral projects and businesses in Africa. Cash-flow for the company is being provided in part by a South African coal-processing business, currently 85 percent owned. Further substance is being given to the Company through an acquisition in Zimbabwe comprised of a drill company with five rigs, and gold and diamond concessions. This acquisition includes extensive infrastructure and an operating 120-man, 600 tpd tailings leach plant. Management and technical teams are being built around these businesses as the Company continues to take shape. Canaf currently has outstanding 43,006,681 common shares.

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
    Head Office
    (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