Kanosak Capital Venture Corporation to acquire additional African gold exploration properties in Burkina Faso
MONTREAL, April 3, 2013 /CNW Telbec/ – Kanosak Capital Venture
Corporation (TSXV: KKV) (the “Corporation” or “Kanosak”) is pleased to
announce the signature of an agreement to acquire new exploration
On April 2, 2013 Kanosak entered into a definitive share purchase
agreement (the “Agreement”) to acquire 100% of LMZ GOLD Burkina SARL
(“LMZ”) a subsidiary of Gondwana Gold Inc. (TSXV- PAO), a
publicly-listed company on the TSX Venture Exchange.
LMZ Gold Burkina holds 100% of the rights on 3 exploration properties
known as Gabou, Dianvour and Ouaraba (the “Properties”). They are
located in South West Africa, within the Birimian Boromo Greenstone
Belt hosting the Kalsaka and Poura gold mines. The Properties are
easily accessible by paved road from the capital of Burkina Faso,
-- The Gabou Property covers 181.6 sq. km and is located 135 km west southwest of Ouagadougou, -- The Dianvour Property covers 248.5 sq. km and is located 210 km southwest of Ouagadougou, -- The Ouaraba Property covers 129.5 sq. km and is located 260 km south southwest of Ouagadougou;
To date, LMZ has incurred approximately $3 million in exploration costs
on the Properties since the issuance of the necessary permits. As such,
most of the minimum costs currently required by the Government of
Burkina Faso for each permit have been met for the next 2 years and
Kanosak has no material financial obligations in that regard.
Francois Auclair, Kanosak CEO, commented “This acquisition will be very
accretive to the operations of Kanosak, further building on the
extensive management and board experience in working in West Africa”.
-- As consideration for this transaction Kanosak will issue 2,000,000 common shares on closing of the transaction, and 3,000,000 additional common shares upon reaching each of the following two milestones: upon the release of a mineral resource estimate of at least 1,000,000 ounces of gold on the Properties and upon the preparation of a bankable feasibility study on the Properties. -- Between the date of signing the Agreement and the closing of the Transaction, anticipated in June 2013, Kanosak will be the operator of the Properties and will be responsible for all related costs. Such costs are non-refundable in case of non-completion of this transaction.
The completion of this transaction is subject to customary closing
conditions including Kanosak’s completion of satisfactory due diligence
as well as the receipt of the necessary regulatory and TSX Venture
Exchange approvals. The transaction is expected to close in June, 2013.
In other news, Kanosak granted Deferred Share Units as special
compensation to certain of its directors with a total value of $500,000
based on a per share value of $0.40.
This news release discusses items that may constitute forward-looking
statements within the meaning of securities laws and that involve risks
and uncertainties. Such statements include those with respect to the
completion of the acquisition of the Properties and share issuances to
be made. Although Kanosak believes in light of the experience of its
officers and directors, current conditions and expected future
developments and other factors that have been considered appropriate
that the expectations reflected in such forward-looking statements are
based on reasonable assumptions, they can give no assurances that those
expectations will be achieved and actual results may differ materially
from those contemplated in the forward-looking statements and
information. Such assumptions, which may prove incorrect, include that
the acquisition of the Properties will obtain all required regulatory
and shareholder approvals and that Gondwana will complete the sale of
the Properties. Factors that could cause actual results to differ
materially from expectations include Kanosak’s inability to obtain the
required approvals or Gondwana’s refusal to proceed, for whatever
reason, either on a timely basis or at all. These factors and others
are more fully discussed in Kanosak’s filings with Canadian securities
regulatory authorities available at www.sedar.com.
Neither TSX Venture Exchange nor its Regulation Services Provider (as
that term is defined in policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
SOURCE Kanosak Capital Venture Corporation