VICTORIA, BRITISH COLUMBIA--(Marketwire - Oct. 22, 2012) - Cancana Resources Corp. (TSX VENTURE:CNY) (the "Company" or "Cancana") closed a non brokered private placement (the "Offering") of 4,595,163 units (each a "Unit") on October 19, 2012 as further described in a press release of the Company dated October 19, 2012.
In connection with the Offering, certain directors and officers of the Company acquired 870,000 Units. The participation of such directors and officers in the Offering constitutes a related party transaction pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"). The Company is exempt from the formal valuation and minority approval requirements of MI 61-101 in reliance on Sections 5.5(a) and (b) and Sections 5.7(a) and (b), respectively, of M1 61-101.
In conjunction with the Offering, the Company issued 98,000 non transferable broker warrants (the "Broker Warrants"). Each Broker Warrant is exercisable into a Unit at an exercise price of $0.25 per Unit for a period of twenty-four (24) months from the closing of the Offering. The Broker Warrants and the securities underlying the Broker Warrants issuable upon due exercise of the Broker Warrants will all be subject to a statutory hold period expiring four months and one day from the closing of the Offering.
Cancana is an exploration stage company that is transitioning into production with assets in Brazil and Canada. The Company has been seeking projects that expand its resource base and provide for near term production and revenue. All available resource reports and information on the Company's properties are located on the Company website.
Issued on behalf of the Board of Directors of Cancana Resources Corp.
Mr. Andrew Male, CEO & Director
The information in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, and applicable Canadian securities laws. When used in this release, words such as "estimate", "expect", "anticipate" and "believe" as well as similar expressions are intended to identify forward-looking statements. Such statements are used to describe management's future plans, objects, and goals for the Company and therefore involve inherent risks and uncertainties. The reader is cautioned that actual results, performance or achievements may be materially different from those implied or expressed in such statements, which speak only as of the date the statements were made. The Company does not update forward-looking statements continually as conditions change. We seek safe harbour.
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.