Cancana Progress Report
CANCANA SHAREHOLDER UPDATE
MCTO LIFTED, RIO MADEIRA FINANCING PROGRESS & VALDIRAO DEVELOPMENT
August 28, 2013 - TORONTO, ONT, CANADA - Cancana Resources Corp. (TSXV: CNY) (the "Company" or "Cancana") is pleased to provide this Shareholder Update with respect to its recent activities. Included in this update is the removal of the Management Cease Tread Order, ("MCTO"), an update on the progress made on Valdirâo or the Claim 886241/2011 and the acquisition of Rio Madeira Comercio Importacao E Exportacao De Minerios, ("Rio Madeira").
Cancana recently completed the filing of its Annual Audited Financial Statements for the period ended January 31, 2013 on July 31, 2013, and then subsequently filed its 1st quarter Interim Financial Statements for the period ending April 30, 2013 on August 1, 2013.
With the completion of the filing of these financial statements the Company is up to date and the MCTO has been lifted by the Alberta Securities Commission as of the close of business on August 6, 2013.
Cancana is very excited about the progress it has made on its Valdirâo or 241NC initial mining location. The Valdirâo farm is located within a mineral claim known as 886241/2011. This claim is 5,417 hectares in size and is fully permitted throughout. The Valdirâo farm is the Company's initial location for production and we have identified an initial area of production that mimics the NI 43-101 report and is comprised of approximately 5 hectares of area.
This area, as reported in the NI 43-101 Technical Report of February 15, 2013, has an estimated 35,000 tonnes of Manganese with an average grade of 54% in the top 2 meters of soil.
Since the permits have been issued Cancana has been able to complete topographical maps of the area that have been used to establish the initial mining process and location stages or benches. It has completed the surveying and locations for access roads, fencing as well as staging areas for equipment. Cancana has also established the locations for settling ponds and equipment infrastructure. This has all been completed in conjunction with the land owner.
Following this Cancana has negotiated contracts with a local contract mining company that will be providing a turnkey mining solution for Cancana. As well the Company has sourced all of the equipment needed to commence production and is able to stage needed equipment along with the delivery schedule requirements for manufacturing and modifications. Cancana will engage all of these contracts in the near future and be in a position to commence production.
The acquisition of Rio Madeira is dependent on financing and this is progressing well. Cancana is pleased to be making continual headway with respect to this and the Company will make an announcement at the appropriate time. Rio Madeira has provided all due diligence materials that we and the financiers who have visited the site and operations have asked for. Rio Madeira operations are ongoing and the company provides Cancana with ongoing updates.
Andrew Male, President & CEO of Cancana, commented; "The continual progress that we have made is very satisfying. The transition from exploration to production is not an easy task to be taken lightly and yet we feel the Company is transitioning well. The amount of effort and energy that is going into both the financing as well as the operational transition to production has never been stronger and is keeping everyone very busy."
Cancana Resources Corp. is an exploration stage company that is transitioning into production with assets in Brazil and Canada. The Company has been seeking projects that expand its resource base and provide for near term production and revenue. All available resource reports and information on the Company's properties are located on the Company website.www.cancanacorp.com
For further information about Cancana Resources Corp., please visit the Company's website or contact the Company at +1 403 269 2065 or preferably email: .
Issued on behalf of the Board of Directors of Cancana Resources Corp.
"Andrew Male"
Mr. Andrew Male, CEO & Director
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The information in this news release may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. When used in this release, words such as "estimate", "expect", "anticipate" and "believe" as well as similar expressions are intended to identify forward-looking statements. Such statements are used to describe management's future plans, objects, and goals for the Company and therefore involve inherent risks and uncertainties. The reader is cautioned that actual results, performance or achievements may be materially different from those implied or expressed in such statements, which speak only as of the date, the statements were made. The Company does not update forward-looking statements continually as conditions change. We seek safe harbour.