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Gold/Mining/Energy : Mining News of Note -- Ignore unavailable to you. Want to Upgrade?

To: LoneClone who wrote (36617)	5/6/2009 10:01:55 AM
From: LoneClone	Read Replies (1) \| Respond to of 195744

Canaco Resources Takes In A New Chinese Friend And Hives Off Its Interest In Mexico, Though Not Because Of Swine ‘Flu By Charles Wyatt minesite.com Company directors with brains and balls are putting together deals in the current financial climate that will ensure increased value for their shareholders in the future. The ones cowering, still in shock at the share price rout at the end of last year, are the ones to avoid, as it is their own monthly salaries that are their prime concern. One of those getting on with life is Andrew Lee Smith of Canadian-listed Canaco Resources who has just put together a funding to raise C$2.27 million by selling units consisting of a share and half a warrant at C5 cents each. A company called Sinotech (Hong Kong) Corporation has agreed to take up 70 per cent of this private placement, so there should not be much trouble in obtaining the balance. In fact Canaco’s shares are currently priced at C8 cents and the warrants entitle holders to acquire shares at C7 cents in the first year and C10 cents in the second so the Chinese clearly know a good thing when they see it. All this is a long way from the glory days of July 2008 when the shares were C30 cents, but it is a privilege given only to very old men to live in the past, as they know only too well what the future holds. Andrew Lee Smith is a pragmatic man. He wants the money and he wants Sinotech on board so he is getting on with it. And no wonder, because the parent company of Sinotech is SinoTex Mineral Exploration, a major Chinese exploration and mine development company, with operations in mainland China and international operations in more than 10 countries worldwide. One of these countries is Tanzania and it is no surprise to learn of the Chinese interest in the projects on which Canaco is working in that country as well as in the combined expertise of Andrew Lee Smith and Dr David Groves. It was David who took Canaco into Tanzania in the first place. He is an academician as well as a practical geologist and his major expertise lies in economic geology, the formation of mineral deposits, particularly gold, and the conceptual targeting of mineral deposits. In the past he has acted as a consultant and provided training courses to exploration companies in Tanzania, and assisted the Geological Survey of Tanzania and Ministry of Energy and Minerals with publication on resource opportunities in their country. As a geologist he thinks outside the box, and takes a cynical attitude to the theory of nearology. Canaco has therefore consolidated a major property holding in the Handeni district which is well away to the east of well known mines such as Bulyanhulu and Geita. As a second phase to the ongoing resurgence of Canaco, a decision has been made to sell off its 50 per cent interest in the El Oro gold-silver project in Mexico. The other partner in this project is Candente Resources and the two companies plan to form a new company, Candente Gold, which will own 100 per cent of El Oro which is judged to have significant potential. In the past it was a significant producer of gold and silver with around 20 million ounces of gold equivalent to its name over the past 400 years. A historic resource of approximately 1.7 million ounces of gold and 34 million ounces of silver arising from 17 million tonnes grading 3.67 g/t gold plus 69.43 g/t silver has been estimated, and there is plenty of exploration potential in the undeveloped vein system. Candente Gold will also inherit Candente’s gold-silver projects in Peru which are at an earlier stage, but on which exploration by Candente has identified gold and silver mineralisation and drill targets in geological settings similar to some of Peru’s world class mines. The new company will issue five million shares each to Canaco and Candente as well as promising to pay each of them in cash or shares a sum of C$1.3 million, which is what they have spent on El Oro to date. Candente will get another 10 million shares for its Peruvian assets and a further 10 million shares after Candente Gold has spent a minimum of C$5 million on them. The rump of the company will continue with the development of the Canariaco copper project in northern Pru, where a positive scoping study was announced last December, under the name Candente Copper. These two deals – the placing and the sale – mean that Andrew and David can now focus on Canaco’s assets in Tanzania, and that they have the funding to accelerate exploration. The latest news is that preliminary gemological results have confirmed the presence of diamondiferous alluvial gravels from the company's Magembe diamond property in the Shinyanga district of northwestern Tanzania. Towards the end of last year prospecting, trenching and soil geochemistry resulted in the discovery of a new area of gold mineralization known as the Majiri Bomba prospect on the Handeni gold project. The news flow should keep SinoTech and other investors interested, and they will obviously also keep an eye on Candente Gold.