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
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.