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Thursday, 29 August 2013
Cancana Resources advances toward both production and purchase in Brazil
Cancana Resources Corp. (CVE:CNY) announced Wednesday the further advancement of both its move to initial production of manganese on its Valdirâo site in Brazil and on the acquisition of Rio Madeira, the company which holds the adjacent property.
"The continual progress that we have made is very satisfying,” said Andrew Male, president and CEO of the Toronto-headquartered exploration stage company, set to shift into production with assets in Brazil and Canada.
“The transition from exploration to production is not an easy task to be taken lightly and yet we feel the company is transitioning well. The amount of effort and energy that is going into both the financing as well as the operational transition to production has never been stronger and is keeping everyone very busy."
In a statement released with the shareholder update, the company was said to be “very excited” about the progress made on the Valdirâo property, the site of initial mining. Cancana has identified an initial area of production of approximately 5 hectares (on a claim that is 5,417 hectares in size) that shares commonalities with the NI 43-101 report issued earlier in the year. The NI 43-101 technical report of February estimated 35,000 tonnes of manganese with an average grade of 54 per cent in the top 2 metres of soil.
The area, which is fully permitted throughout, has been the subject of surveying by Cancana to establish such information as the best locations for access roads and fencing, as well as staging areas for equipment. The company has also established the locations for settling ponds and equipment infrastructure.
With these pieces of information in place, Cancana has taken the step of negotiating contracts with the local contract mining company that will be providing a turnkey mining solution. Cancana also advised in its statement that it had sourced all the equipment needed to commence production and thus would be able to “stage needed equipment along with the delivery schedule requirements for manufacturing and modifications. Cancana will engage all of these contracts in the near future and be in a position to commence production.”
Additionally, the company is advancing its acquisition of Rio Madeira, the company which owns the property adjacent to Valdirâo, and says this purchase is progressing well. In the company statement, Cancana said it “is pleased to be making continual headway with respect to this and will make an announcement at the appropriate time.
"Rio Madeira has provided all due diligence materials that we and the financiers who have visited the site and operations have asked for. Rio Madeira operations are ongoing and the company provides Cancana with ongoing updates."
Also included in the announcement was the notification that the company recently completed the filing of its Annual Audited Financial Statements for the period ended January 31, 2013 on July 31, 2013, and then subsequently filed its first quarter interim financial statements for the period ending April 30, 2013 on August 1, 2013. With the completion of the filing of these financial statements, the company is up to date and the MCTO has been lifted by the Alberta Securities Commission as of the close of business on August 6, 2013.
Shares in the company were trading at 19 cents on the TSX Venture Exchange at close of market Wednesday.