Canaco Resources Inc.: Corporate Update
3 minutes ago - ACQUIREMEDIA
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Oct. 18, 2010) - Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco") has been asked by the TSX Venture Exchange to comment on a news release issued by Sonora Gold & Silver Corp. ("Sonora") on October 15, 2010.Sonora's news release indicates that it has an option on a PrimaryMining License (PML) that has been converted into a Mining License (ML).Canaco has reviewed the Sonora news release.
Canaco has met with the Commissioner of Mines in Tanzaniawho has confirmed the validity and status of Canaco's existingProspecting License (PL) which provides Canaco with exclusive rights tothe area of the Magambazi discovery. The Commissioner has also informedCanaco of the existence of competing rights in the form of a 0.075 sq.km. PML within Canaco's 196 sq. km. Kilindi PL which was previously notindicated as being present within Canaco's PL. The PML is located withinthe area that Canaco has been drilling while outlining the Magambazigold trend.
The Commissioner has expressed to Canaco concerns about the abilityof a small ML to be sufficient to accommodate any mining operations andabout the potential detrimental impact on Canaco's shareholders, theGovernment of Tanzaniaand the impairment of the advanced exploration program at Magambazi.Therefore, the Commissioner has advised Canaco that it has suspended thetransfer of the ML to Sonora and will intervene to arbitrate a fair andequitable resolution to the competing interests in order that theproject can move forward.
All affected parties have been called by the Commissioner to meet inDar es Salaam in the next 48 hours for an arbitrated resolution thatwill be in the best interest of all parties. Canaco will continue towork diligently towards what it expects to be a speedy and favourableresolution to maintain the integrity of the Magambazi discovery, and iscontinuing to progress exploration and definition drilling activities onthe PL.