The Transaction is targeted to close in February 2013. An application will be submitted to the TSX Venture Exchange for the listing of the common shares of East Africa Metals under the trading symbol EAM with effect following completion of the Spinout Transaction.
Canaccord Genuity Corp. has been engaged to provide a fairness opinion and Canaco's legal advisor is Cassels Brock & Blackwell LLP. Shark's legal advisor is Blake, Cassels and Graydon LLP.
Cormark Securities Inc., Royal Bank Plaza, South Tower, 200 Bay Street, Suite 2800, Toronto, Ontario M5J 2J2, has agreed to act as Shark's sponsor in connection with the Shark Acquisition.
Canaco shareholders and other interested parties are advised to read the materials relating to the proposed Transaction that will be filed by Canaco with securities regulatory authorities in Canada when they become available. Anyone may obtain copies of these documents when available free of charge at the Canadian Securities Administrators' website at www.sedar.com.
This announcement is for informational purposes only and does not constitute an offer to purchase, a solicitation of an offer to sell the shares or a solicitation of a proxy.
Additional information about Canaco including news releases, interim financial statements and other public documents can be viewed at the Company's website www.canaco.ca or at www.sedar.com.
About Canaco
Canaco is a Vancouver-based mineral exploration company focused on advanced exploration projects in Africa. The Company has $90 million cash and no debt. Canaco's shares trade on the TSX Venture Exchange under the symbol CAN.
On behalf of the Board of Directors:Andrew Lee Smith, P.Geo.President, CEO and Director
Cautionary Statement Regarding Forward-Looking Information
This news release contains "forward-looking information" within the meaning of applicable Canadian securities legislation. Generally, forward-looking information can be identified by the use of forward-looking terminology such as "anticipate", "believe", "plan", "expect", "intend", "estimate", "forecast", "project", "budget", "schedule", "may", "will", "could", "might", "should" or variations of such words or similar words or expressions or statements that certain events "may" or "will" occur. Forward-looking statements in this news release include, but are not limited to, statements relating to completion of the Transaction and the expected timing; the cash balance East Africa Metals and Canaco will have upon completion of the Transaction; and the plans of Canaco and East Africa Metals following the Transaction, including exploration activities, in the Galat Sufur and Ghazal projects. Forward-looking information is based on reasonable assumptions that have been made by the Company as at the date of such information and is subject to known and unknown risks, uncertainties and other factors that may cause the actual results, level of activity, performance or achievements of the Company to be materially different from those expressed or implied by such forward-looking information, including but not limited to: risks associated with mineral exploration and development; metal and mineral prices; availability of capital; accuracy of the Company's projections and estimates; interest and exchange rates; competition; stock price fluctuations; availability of drilling equipment and access; actual results of current exploration activities; government regulation; political or economic developments; environmental risks; insurance risks; capital expenditures; operating or technical difficulties in connection with development activities; personnel relations; the speculative nature of strategic metal exploration and development including the risks of diminishing quantities of grades of reserves; contests over title to properties; and changes in project parameters as plans continue to be refined. Forward-looking statements are based on assumptions management believes to be reasonable, including but not limited to the price of gold; the demand for gold; the ability to carry on exploration and development activities; the timely receipt of any required approvals; the ability to obtain qualified personnel, equipment and services in a timely and cost-efficient manner; the ability to operate in a safe, efficient and effective manner; the expected timing, costs, and results of the PEA; the expected burn rate; the regulatory framework regarding environmental matters, and such other assumptions and factors as set out herein.
Although the Company has attempted to identify important factors that could cause actual results to differ materially from those contained in forward-looking information, there may be other factors that cause results not to be as anticipated, estimated or intended. There can be no assurance that such information will prove to be accurate, as actual results and future events could differ materially from those anticipated in such information. Neither the Company nor Shark undertakes any obligation to update forward-looking information if circumstances or management's estimates, assumptions or opinions should change, except as required by applicable law. Accordingly, readers should not place undue reliance on forward-looking information contained herein, except in accordance with applicable securities laws.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Canaco Resources Inc.
Andrew Lee Smith
President and CEO
604-488-0822 or 1-866-488-0822
Canaco Resources Inc.
Nick Watters
Director Business Development
604-488-0822 or 1-866-488-0822
Canaco Resources Inc.
Meghan Brown
Director Investor Relations
604-488-0822 or 1-866-488-0822
investors@canaco.ca
www.canaco.ca
