MONTREAL, Jan. 29, 2013 /CNW Telbec/ - Kanosak Capital Venture Corporation (TSXV: KKV) (the "Corporation" or "Kanosak") is pleased to announce an acquisition of a property in Mauritania, as well as key board and management appointments.
The Corporation has acquire a 90% interest in the Société Mauritanienne d'Exploration ("SEM") from Wafa Mining and Petroleum S.A., a Mauritanian company. SEM has the right to prospect and develop the Kneivissat 2 license, an 830-square-kilometer property in close proximity to the Tasiast mine in north-western Mauritania.
In exchange for this interest in SEM, Kanosak issued 100,000 common shares and paid US$100,000 in cash. Additional contingent consideration of 200,000 common shares and US$200,000 will be paid on each of the first and second anniversaries of the closing date, in 2014 and 2015. Upon a completion of a satisfactory feasibility study, a further US$2,000,000 will be paid to Wafa Mining and Petroleum S.A.
Kanosak has further committed to incur US$3 million in exploration expenditures as follows: US$1 million within 18 months of closing, and then US$1 million per year for the two following years. The payments in cash, common shares issue and exploration expenses are contingent upon ongoing exploration results.
Dr. Michel Jébrak, geologist, professor and participant in the original Tasiast gold deposit discovery, said of the Wafa property: "the geological context of the permit shows strong similarities to the Tasiast gold deposit. Considering that it is located immediately adjacent to a known gold belt at the northern extension of Tasiast West, we believe that its potential is very favorable. Moreover some highly prospective structures seen on the Tasiast property extend onto the Kneivissat property", as demonstrated (blue dashed line) on Figure 1.
Board and Management Appointments
In other news, Kanosak announces that Jean-François Ruel and Jean Desmarais have resigned from their positions with the Corporation and that François Auclair and Benoit La Salle have been appointed to replace them as directors. René Lopez has been appointed interim President and Chief Executive Officer and Dejan Ristic has been appointed Chief Financial Officer. The Corporation thanks Mr. Ruel and Mr. Desmarais for their contributions and wishes them well in their future endeavours.
Mr. Benoit La Salle, FCPA, FCA is founder and Executive Vice Chairman of SEMAFO (a TSX listed company), and a well-known mining entrepreneur in Canada and Africa. Mr. La Salle was instrumental in growing SEMAFO from a junior explorer into a gold producer, with 3 producing mines in West Africa, generating annual revenues of over CAD$400 million and a market capitalisation of close to CAD$1 billion. In addition, M. La Salle is currently acting as Chairman of Canadian Council on Africa.
Mr. François Auclair, M.Sc., PGeo, is a geologist with over 25 years of experience, including 20 years in Africa. Mr Auclair was involved at the early stage of development of the Tasiast Mine while being GM of Tasiast. Mr Auclair was formerly CEO of Nimini Gold and currently one of its directors. Nimini Gold is a 90% subsidiary of Polo Resources developing the Komahum gold deposit in Sierra Leone.
Mr. Dejan Ristic is a Quebec CPA CA and a Certified Public Accountant in the US. His experience includes having been manager in the high technology practice at Ernst & Young LLP. In 2004, Mr. Ristic founded its accounting practice, Exceleris, and provides consulting, accounting and CFO services to numerous public and private companies in technology and mining sectors.
Wafa Mining and Petroleum S.A. is owned and operated by Wafa Group S.A., an influential industrial and professional family enterprise in Mauritania whose business interests include activities in the areas of import, processing and distribution of food products, public works, real estate, construction and natural resources. All amounts are in US dollars unless otherwise stated.
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 future cash payments and share issuances to be made and exploration expenditures to be incurred. 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 Property will obtain all required regulatory approvals, that Kanosak will have the cash on hand to make the payments when due and that the results of its initial exploration of the Property will justify incurring a total of US$3 million. Factors that could cause actual results to differ materially from expectations include Kanosak's inability to access the funds required to make the cash payments when due and unsatisfactory results of its preliminary work on the Property. 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