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Vancouver, B.C. Canasia Industries Corporation (the "Company") (TSX.V: CAJ) (FSE: 45C) (OTCBB: CANSF) wishes to announce that it has entered into a Letter of Intent for the acquisition of the Reed Lake claims in Manitoba.
The claims are known as mineral exploration license 331A "MEL 331A", which comprise in excess of 26,653 ha. To view a map of the claims go to http://66.119.176.213/images/cajmap.jpg.
The Vendors have agreed to collectively sell 50% of their interest in MEL 331A to the Company. The purchase price is $225,000 cash with each of the vendors, for a total purchase price of $450,000 plus reimbursement of one half of staking costs. The Company is acquiring a 50% interest in the property subject to a 2% NSR granted in favour of the Vendors, of which 1% can be purchased at any time for $1,000,000 with the Company's share being $500,000.
This 26,653 hectare property is contiguous to the south of VMS Ventures Inc.'s property which on October 4, 2007, announced assays of 2.50 metres (8.2 feet) of 15.30% copper, within 10.50 metres (34.4 feet) of 11.19% copper, within 22.25 metres (72.9 feet) of 7.75% copper, within 43.05 metres (141.2 feet) of 4.38% copper.
The Reed Lake volcanogenic massive sulphide (VMS) mineralized zone is overlain by distinctive layers of magnetite and chert. The rocks that underlie and contain the sulphide are moderately to intensely altered felsic volcanic rocks. The Reed Lake mineralization is typical of other VMS deposits including those in the prolific Snow Lake camp and the nearby Spruce Point mine, formerly operated by HudBay Minerals.
Graeme Sewell, a director of the Company stated, "This is a major step forward for Canasia. Making an acquisition of this significant acreage contiguous to a potential new discovery is extremely positive for Canasia's management and shareholders. The plan is to initiate a full scale program as soon as possible. When you couple this new acquisition with our ongoing activities on Canasia's other gold prospects, it is clearly an exciting period of corporate growth for Canasia in the short and long term."
The Company is proposing, as part of the acquisition, a non-brokered private placement for 1,846,154 units at $0.325 per unit; each unit will consist of one share and one share purchase warrant subject to exchange approval. Each two share purchase warrants will entitle the holder to purchase one additional share at an exercise price of $0.49 for a period of one year from closing. A finders fee may be payable on the private placement and the acquisition.
This agreement and the finders' fees on the financing and acquisition are subject to the approval of the TSX-V Exchange.
If you would like to be added to Canasia's news distribution list, please send your email address to info@canasiaind.com.
Contact Information
Tel: (778) 328-8848
Fax:(604) 689-1733
www.canasiaind.com
info@canasiaind.com
"Graeme Sewell"
Director
Canasia Industries Corporation
Disclaimer for Forward-Looking Information
Certain statements in this release are forward-looking statements, which reflect the expectations of management regarding the Company's ability to close the Purchase and Sale Agreement. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations or intentions regarding the future. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements reflect management's current views and are based on certain expectations, estimates and assumptions which may prove to be incorrect. A number of risks and uncertainties could cause our actual results to differ materially from those expressed or implied by the forward-looking statements, including: (1) a downturn in general economic conditions in North America and internationally, (2) the inherent uncertainties and speculative nature associated with mineral exploration, (3) a decreased demand for minerals, (4) any number of events or causes which may delay or cease exploration and development of the Company's property interests, such as environmental liabilities, weather, mechanical failures, safety concerns and labour problems; (5) the risk that the Company does not execute its business plan, (6) inability to retain key employees, (7) inability to finance operations and growth, (8) inability to obtain all necessary environmental and regulatory approvals, (9) an increase in the number of competitors with larger resources, (10) other factors beyond the Company's control; and (11) the failure of the Letter of Intent to close for any reason. These forward-looking statements are made as of the date of this news release and the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Additional information about these and other assumptions, risks and uncertainties are set out in the "Risks and Uncertainties" section in the Company's MD&A filed with Canadian security regulators.
The TSX Venture Exchange has not reviewed and does not accept responsibility
for the adequacy or accuracy of the content of this news release.
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