****Red Flag**** Canuc Resources (CDA-V) Oct 17, '14 wishes to report that it has entered into an agreement to transfer ownership of the Company's wholly owned Ecuadorian subsidiary to Mr. Jorge Guzman of Quito, Ecuador. The agreement calls for Mr. Guzman to pay to Canuc a royalty of US$10,000 per month after stabilized production has been reached. The Company has also retained the right to acquire a 49% interest in Mr. Guzman's operations by paying 200% of his costs to achieve stabilized production. Mr. Guzman was Canuc's General Manger in Ecuador for many years and is very familiar with the Nambija property having been one of the first mining engineers to visit Nambija after its discovery in 1981. While Canuc regrets disposing of its properties in Ecuador, the Company is of the opinion that it had no other option. Nambija has been plagued by illegal miners invading the operations since shortly after Canuc acquired the mining rights to operate the ground. Despite the Company's numerous requests to the Ecuadorian Ministry of Mines to have to these illegal miners removed, no action was taken. Earlier this year, these illegal miners began lobbying the Ecuadorian Government to cancel Canuc's mining rights, because of lack of activity, totally ignored the fact that the illegal miners continuously hindered any attempts on the Company's part to carry out exploration or development. Recently, it became apparent to Canuc that their collective voices were being heard and that the Government was taking them seriously. Consequently, Canuc came to the conclusion that Ecuador was not a friendly environment in which to conduct exploration. Thus, the Board decided that no more time or capital should be spent in Ecuador.
"The agreement with Mr. Guzman provides us with an opportunity to re-enter Ecuador in the event that the Ecuadorian Government becomes friendlier to foreign investors", states Hub Mockler, Chairman and CEO of Canuc.
About Canuc
Canuc is a junior natural resource company that is active in the oil and gas sector in Texas and will be expanding its activities in 2015.
For Further Information: Hub Mockler, Chairman & CEO 416-867-1300 |
