Canaco Resources (CAN-V) shareholders OK Shark Minerals buy
News Release - March 28, 2013
Canaco Resources is pleased to announce that at a special meeting of shareholders held on Thursday, March 28, 2013, the shareholders of the Company approved the previously announced acquisition by Canaco of all of the outstanding common shares of Shark Minerals in exchange for common shares of Canaco (the "Acquisition") pursuant to the share purchase agreement among Canaco, Shark Minerals and all of the shareholders of Shark Minerals dated December 14, 2012.
the shareholders of the Company also approved the spinout of certain assets of Canaco to East Africa Metals Inc. ("East Africa Metals"), a new company formed by Canaco and expected to be listed on the TSX Venture Exchange (the "Spinout Transaction"). The Spinout Transaction will include the transfer by Canaco of its Tanzanian assets and approximately $24 million in cash and certain other assets and liabilities to East Africa Metals. The Spinout Transaction will be completed by way of a plan of arrangement under the Canada Business Corporations Act, whereby shareholders of Canaco will be entitled to receive one common share of East Africa Metals for every three common shares of Canaco held as of the effective date of the Spinout Transaction, expected to be April 4, 2013. East Africa Metals will be managed by former Canaco executives.
the Company's shareholders also approved a change in the name of the Company and a share consolidation. In light of Canaco's new focus and changes to the board of directors and management team as a result of the Acquisition and Spinout Transaction, the Company's name will be changed to "Orca Gold (ORG-V) and following the closing of the Acquisition. In addition, upon the closing of the Acquisition, expected to take place on or about April 4, 2013 and subject to court and regulatory approval, the common shares will be consolidated on a three to one basis. |
