Canaf Group Inc.

Canaf Group Inc.

July 17, 2007 12:55 ET

Canaf Group Inc. Announces Terms for $2M Private Placement

VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 17, 2007) - Canaf Group Inc. (TSX VENTURE:CAF) is pleased to announce the terms of the $2M non-brokered private placement (see news release dated July 4, 2007). The private placement will be for 8,000,000 units at CDN$0.25 for gross proceeds of CDN$2,000,000. Each unit consists of one share and one half of a warrant. Each whole warrant will entitle the holder to acquire one additional common share of Canaf at the price of CDN$0.35, exercisable for the period of one year. After the expiry of the four month hold period, 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 written notice and by press release to 14 days from the date of the press release. The common shares and warrants are subject to a restricted period that will expire four months after the close of the private placement.

The proceeds from this private placement will be used to repay non-interest bearing loans used to purchase the previously announced Quantum Screening and Crushing Limited acquisition and for working capital. David Way, President and CEO of Canaf Group, will be participating for a minimum of $750,000.

The company may pay accredited brokers, agents or financial institutions commission of 7% of the gross proceeds in cash or units upon closing. The private placement is subject to regulatory approval.

About Canaf Group

Canaf Group is currently focused on developing a portfolio of high interest properties in Africa through strategic acquisitions. Recently the company purchased an 85 percent interest in Quantum Screening and Crushing Limited, a private South African company that processes coal products into carbon for use during the manufacturing of steel and manganese. Quantum has been profitably operating for more than three years. Canaf has also entered into Letters of Intent for a number of gold and diamond concessions in Zimbabwe--including one which has an operating 120-man, 600 tpd tailings leach plant.

David Way, President and CEO

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

Contact Information

  • Canaf Group Inc.
    Brad Jefferson
    (604) 767-3977
    (604) 682-2275 (FAX)
    Ascenta Capital Partners Inc.
    Rory Quinn
    Investor Relations
    (604) 684-4743 ext. 226 or Toll free: 1-866-684-4209
    (604) 939-1292 (FAX)