Canaco Resources (CAN.TSXV) provided an update on its spin-out of Tigray Resources. Tigray has received conditional listing approval from the TSX Venture Exchange, subject to usual listing requirements. Upon being listed, Tigray will file on or before the filing deadline the necessary election to become a public corporation effective from the beginning of its first taxation year.
The transaction will include the transfer of Canaco’s 70% interest in Harvest Mining PLC, which owns the Harvest VMS Project in Ethiopia, to Tigray, as well as $4 million, which represents 18 months’ working capital and sufficient funds to conduct the recommended first phase drill program.
* Canaco shareholders will be entitled to receive one common share of Tigray for every five common shares of Canaco held.
* Tigray’s initial mandate at the Harvest Project will be to complete geological, geochemical and geophysical profiling to establish targets for continued drill testing.
* An 11,000-meter first phase diamond drill program is planned for 2011, with an additional 3,000 meters follow-up drilling.
Andrew Lee Smith, President and CEO of Canaco and Tigray:
“We believe Tigray represents an exciting opportunity for investors to gain exposure to the emerging mineral exploration sector in Ethiopia. Irrespective of the delay in the listing process, Tigray plans to immediately launch an 11,000-metre first phase drill program at the Harvest project.”