NEW YORK Cancana Resources Corp. said it has entered into an exclusive memorandum of understanding to purchase Brazilian manganese mining company Rio Madeira Comercio Importacao e Exportacao De Minerios.
The agreementwhich includes Rio Madeiras corporate entity and all of its associated assets, minerals claims and operationsis subject to the completion of due diligence and financing, which are set to expire April 30. Terms of the proposed transaction were not disclosed.
Rio Madeira holds 15 minerals claims in Brazil that total more than 153,205 acres, and its manganese mine operation is adjacent to Cancanas manganese claims. Calgary, Alberta-based Cancana holds nearly 94,000 acres of high-grade manganese claims in Brazil.
"In the past year, Rio Madeira has made substantial improvements to their production and processing facilities. These include the streamlining of the initial ore processing, screening, washing and sorting, as well as the ability to commence the recovery of the fines, or granular manganese ore. In turn, this affords Rio Madeira the ability to access the fertilizer industry as well as the steel and ferromanganese markets," Cancana said.