VICTORIA – Cancana Resources Corp. (TSXV:CNY), a junior miner based in Victoria, has renegotiated the acquisition of Amazon Resources Ltd. and will pay fewer shares to finalize the deal.
The company said Friday the two miners had agreed to a new deal that significantly reduces the number of shares Cancana will be required to pay to take control of Amazon – from just under 14 million to about 4.4 million.
In the new deal, Cancana will also pay Amazon a three per cent royalty on any metal production.
Amazon is a private company that explores for gold and diamonds in Brazil.
Cancana shares were halted on the TSX Venture Exchange pending the news.
Earlier, Cancana announced it had acquired 5,417 hectares of manganese exploration property in the Brazilian state of Rondonia.
Financial terms of that deal were not revealed.
Cancana said the renegotiated transaction with Amazon represents a substantial savings and benefit to the shareholders of Cancana as well as providing for much less dilution of the company’s share capital.
“We are very pleased that the shareholders of Amazon have agreed to this revised valuation and acquisition proposal,” said Andrew Male, chief financial officer of Cancana.
“While it represents a substantial reduction in the number of shares that Amazon shareholders will receive it does preserve the integrity of Cancana’s capital structure as we embark on our next phase which is to secure sufficient capital to commission the Amazon production facility at Parauna in Brazil, complete a drilling program on our Dash project in British Columbia as well as work towards establishing our permitting and in turn mining operations for our manganese bearing claims in Rondonia Brazil.”
Cancana Resources, formerly Sola Resource Corp., is an exploration company with assets in Brazil and Canada. The company focuses on diamond, manganese and gold deposits.