January 06, 2010 03:01 ET
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 6, 2010) - Canasia Industries Corporation ("Canasia") (TSX VENTURE:CAJ)(FRANKFURT:45C)(OTCBB:CANSF) wishes to announce that it has entered into an Letter of Intent ("LOI") with Colonnade Capital Corp. (Colonnade") enabling Colonnade to acquire a 51-per-cent interest in the Eyehill Creek potash property described in the amended and restated 43-101 report dated April 30, 2009, by Dahrouge Geological Consulting Ltd., and whereby, following the exercise of the option, Colonnade and Canasia would enter into a joint venture to develop the property. A copy of the report is posted under Canasia's profile on SEDAR.
In order for Colonnade to earn a 51-per-cent interest in the property, Colonnade must: (i) pay to Canasia the sum of $25,000 on the date of signing of the LOI; (ii) pay to Canasia the sum of $15,000 on the closing date of the transaction; and (iii) spend the total sum of $1.15-million in work commitments on the property over a four-year period from the closing date of the transaction. Upon the vesting of the option, Colonnade will grant a 2-per-cent net smelter returns royalty to Canasia, subject to a buyback right of Colonnade to repurchase 1 per cent of the NSR for a payment of $1-million.
Canasia currently holds a 100-per-cent undivided right, title and interest in and to the metallic and industrial minerals permits related to the property except for the obligation of Canasia to pay a 2-per-cent net smelter return royalty to third parties upon the commencement of commercial production, including any mineral leases or other interests into which such MAIM permits may have been converted.
Graeme Sewell, a director of Canasia, stated: "This is a win-win scenario for both companies. Colonnade will receive a highly prospective potash prospect and Canasia will retain a significant portion of the property without having to expend any funds to conduct the initial exploration. Canasia has multiple projects ongoing and having the potash prospect developed only adds more value without utilizing any additional funds."
Cindy Cai has been appointed CFO of Canasia, replacing Negar Towfigh, who will remain on as president and director.
If you would like to be added to Canasia's news distribution list, please send your email address to firstname.lastname@example.org.
Canasia Industries has a well diversified portfolio of prospects. Canasia's current prospects include the following: (a) The Clone Gold prospect in Stewart, BC, that has recently returned grades as high as 44.75 g/t Ag over 12.80 metres (announced October 22,2009); (b) The Debut Gold prospect in NE Nevada where Kinross Gold is now actively drilling; (c) 55,300 contiguous acres at Reed Lake, Manitoba; (d) 450,000 contiguous acres of Potash claims, bordering Alberta and Saskatchewan; (e) 130,500 acres prospective for Coal in SE Saskatchewan; (f) 180,000 acres prospective for Lithium in Alberta; (g) and three mineral claims covering an area of approximately 31,602 hectares, located north and northwest of the El Oro - Tlalpujahua Gold/Silver belt in the states of Guanajuato and Michoacan, Mexico.
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.
Canasia Industries CorporationGraeme SewellDirector1-877-225-6755(604) 689-1733 (FAX)email@example.com
See all RSS Newsfeeds