Cancana to hold meeting for spinoff plan June 12

2012-04-13 08:58 PT - News Release
Shares issued 16,409,953
CNY Close 2012-04-12 C$ 0.43

Dr. William Pfaffenberger reports

Cancana Resources Corp.'s board of directors, further to the company's press release dated March 20, 2012, will hold a special meeting of the shareholders on June 12, 2012, for the purposes of approving a plan of arrangement (PoA), for the spinoff of certain assets into various subsidiary companies.

The board has also set May 7, 2012, as the record date.

At the annual general meeting (AGM), in Victoria, B.C., on March 9, the company announced that the Board of Directors had chosen to segregate its minerals classes into new and distinct companies by way of a spin-off strategy. The objective here was to separate the Gold and Diamond opportunities from the Manganese opportunities. In turn each of the companies will then become a "pure play" in nature and not have co-mingled mineral classes.

This process will be completed by way of a Plan of Arrangement ("POA") with the creation of a set of subsidiary companies. The first subsidiary will see the spin-off of a gold property in British Columbia known as Dash. Secondarily the diamond and gold assets from Brazil will be transitioned as well.

Cancana will create five spin-off companies in total and will seek qualifying projects for the companies that it does not use internally. Cancana intends to replicate the share structure on a 1 for 1 ratio which means that for every one share of Cancana held, that shareholder will receive one share in each of the five spin off companies. The date for the distribution of shares from the spin-off companies will be determined at a time by the Board of Directors and a corresponding news release will be issued.

The Company has a Private Placement open at this time and investors in the Private Placement will benefit further by way of being able to exercise Share Purchase Warrants that are part of the Unit Placement of $0.50 each. The Share Purchase Warrants are eligible for 2 years and exercisable at $0.75. The Share Purchase Warrants will be extended into the spin-off companies as well. Should anyone be interested in participating in this private placement please contact the Company.

We seek Safe Harbor.