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Cancana Announces Disposition of MLB Mining Claims, Execution of Shareholders' Agreement and US$1.5 Million Convertible Debenture Financing
TSX-V: CNY TORONTO , Dec. 22, 2014 /CNW Telbec/ - Cancana Resources Corp.  (TSXV:...
About this update from Meridian Mining Plc
[{"type":"text","content":"\n\nTSX-V: CNY\n\n\n\nTORONTO, Dec. 22, 2014 /CNW Telbec/ - Cancana Resources Corp.  (TSXV: CNY) (the \"Company\" or \"Cancana\") is pleased to announce that it has entered into a binding term sheet (the \"Agreement\") with its joint venture partner, Ferrometals BV (\"Ferrometals\"), with respect to the transfer of mining tenements formerly held by M.L.B. de Nogueira – E.P.P. (\"MLB\") to Brazil Manganẽs Corporation Mineração  S.A. (\"BMC\") (formerly Rio Madeira Comércio Importação e Exportação de Minérios Ltda.), the joint venture between Cancana and Ferrometals. Cancana is also pleased to announce that is has entered into a shareholders' agreement with Ferrometals (the \"BMC Shareholders' Agreement\") in order to regulate the relations between Cancana and Ferrometals as shareholders of BMC. In addition, Cancana is pleased to announce a proposed US$1.5 million financing through the issuance by the Company of a US$1.5 million secured convertible debenture to Ferrometals. \n\nDisposition of MLB\n\nPursuant to the terms of the Agreement, which was entered into between Cancana, Ferrometals and Sentient Global Resources Fund III, L.P. and Sentient Global Resources Fund IV, L.P. (collectively with Ferrometals, the \"Sentient Group\"), as soon as practicable after the execution of the Agreement, and subject to the receipt of required regulatory approvals (including the final approval of the TSX Venture Exchange (the \"TSXV\")) and the satisfaction of certain customary closing conditions, the Company will transfer to BMC all of the shares in the capital of Cancana Brasil Mineração Ltda. (\"Cancana Brazil\"), Cancana's wholly-owned Brazilian subsidiary which currently owns mining tenements formerly held by MLB (the \"MLB Tenements\"), in exchange for shares of BMC. Pursuant to the Agreement, Ferrometals and Cancana have agreed that the value of the MLB Tenements is US$2.5 million. Cancana will be issued shares of BMC as consideration for the transfer of the MLB Tenements to BMC, which shall be completed by way of the transfer of all of the shares of Cancana Brazil to BMC. Upon completion of the transfer of the MLB Tenements and the issuance of such BMC shares to Cancana, Cancana will own approximately 32.5% of the issued and outstanding shares of BMC. Currently C...