Cancana Resources Corp. (TSXV:CNY) has entered into an exclusive Memorandum of Understanding, (“MOU”) to purchase Rio Madeira Comercio Importacao E Exportacao De Minerios in the State of Rondonia, Brazil. The agreement will enable Cancana to acquire 100% of the Rio Madeira corporate entity, its mineral claims and operations. The MOU is subject to the completion of due dilligence and financing which expires on April 30, 2013.
As quoted in the press release:
Cancana and Rio Madeira have commenced establishment of due diligence requirements and these are underway. This will include the review of all financial and operational aspects of Rio Madeira as well as a geo technical review of the mineral claims held. Present grades of Manganese produced are in the 50% plus range according to Rio Madeira, these are similar to the grades Cancana has reported in the two recent N.I. 43-101 reports published for its Valdirao project known as “241NC”.
Andrew Male, President & CEO of Cancana stated:
We are very pleased to have signed an MOU with the owners of Rio Madeira. During the last 7 days I have visited their production plant in Espigao, and I am very encouraged by the progress that Rio Madeira has made with ongoing modifications and upgrades to their processing facilities. As we are completing the due diligence of Rio Madeira we will then concurrently begin to seek the acquisition financing required to complete the purchase. Having maintained a good ongoing relationship with the partners of Rio Madeira since late 2010, when we originally tried to establish a partnership with them, has been key in successfully obtaining this agreement for a 100% acquisition.