Canasia Acquires Option on more than 450,000 Contiguous Acres of Potash Claims



    VANCOUVER, Feb. 25 /CNW/ - Canasia Industries Corporation (the "Company")
wishes to announce that, subject to regulatory approval, it has signed an
option agreement to acquire a 100% interest, in the Eyehill Creek Potash
Property, which consists of 20 Metallic and Industrial Minerals Permit (MAIM)
Applications, located within east-central Alberta, along the
Saskatchewan-Alberta border. These permit applications, which the Company
anticipates will be granted shortly, encompass approximately 450,000 acres of
lands prospective for potash.
    The Eyehill Creek Potash Property is underlain at depth by the Prairie
Evaporite Formation, the uppermost unit of the Elk Point Group. The Prairie
Evaporite Formation occurs extensively across the plains region of western
Canada, where individual potash beds can be up to seven meters thick.
    The Potash-bearing beds of the Prairie Evaporite Formation are shown to
project into the Eyehill Creek Property by Hamilton (1971), while Hamilton and
Olson (1994) document a Potash Showing on the property. Most of the recorded
Potash Exploration in Alberta occurred between 1965 and 1968. The Company
believes that there is potential for the discovery of significant Potash
occurences within the Eyehill Creek Property. Currently, there is no NI43-101
report on this property, nor are there proven, indicated or inferred
resources. The Company plans to initiate a compilation of all historic
exploration data for the area, and the completion of a NI43-101 report.
    Potash is a general term covering several types of potassium salts, of
which the most important is potassium chloride, the mineral sylvite. Potash is
a nutrient essential for plant growth, and is a cornerstone of modern
agricultural fertilizers. Roughly 95 per cent of world potash production goes
into fertilizer, while the other five per cent is used in commercial and
industrial products - everything from soap to television tubes. According to
an article in the Financial Post published Wednesday, February 20, 2008,
"Driving potash prices will be strong demand -- particularly from countries
outside of China, which is currently negotiating contracts -- in a time of
historically low inventory levels, the strategists say. North American
producer inventories are 37% below the five-year historical average, and about
50% lower than in 2006."
    Graeme Sewell, a director of the Company stated, "This prospect holds a
tremendous opportunity for Canasia to branch out its mining operations into
potash, a commodity which is in high demand at this time. Once final permits
are received a work program will be initiated with the hopes to ultimately put
a mine into production. When you consider that currently there are only a few
publicly traded Potash companies, the majority of these trading with market
caps over 100 million dollars, we feel that this new prospect has the
possibility to create significant shareholder value if it is shown to contain
an economic potash deposit."
    Terms of the acquisition with the arms-length vendor are as follows:

    
    1) Cash payment of $35,000 upon execution of the Option Agreement;
    2) A further cash payment of $89,998 after receipt of the MAIM Permits;
    3) On acceptance by the TSX Venture Exchange and receipt of the metallic
       and industrial minerals issuance of 500,000 common shares of the
       Company;
    4) One year from the date of the Agreement the issuance of 500,000 common
       shares of the Company;
    5) Two years from the date of the Agreement the issuance of 500,000
       common shares of the Company; and
    6) The property is subject to a 2% NSR Royalty.
    

    Jody Dahrouge P.Geol., a qualified person, has reviewed the information
pertinent to the Eyehill Potash Property contained herein.

    The Company wishes to further announce that it will be attending the PDAC
March 2nd and 3rd. According to the PDAC's website, "The PDAC International
Convention, Trade Show and Investors Exchange is the most important event in
the world of exploration, bringing together over 18,000 attendees from all
over the globe." Canasia's management extends an invitation to all
shareholders and prospective shareholders to meet Canasia representatives at
the show.
    If you would like to be added to Canasia's news distribution list, please
send your email address to info@canasiaind.com.

    "Graeme Sewell"
    Director
    Canasia Industries Corporation

    Disclaimer for Forward-Looking Information
    Certain statements in this release are forward-looking statements, which
reflect the expectations of management regarding the Company's ability to
close the Purchase and Sale Agreement.  Forward-looking statements consist of
statements that are not purely historical, including any statements regarding
beliefs, plans, expectations or intentions regarding the future.  Such
statements are subject to risks and uncertainties that may cause actual
results, performance or developments to differ materially from those contained
in the statements. No assurance can be given that any of the events
anticipated by the forward-looking statements will occur or, if they do occur,
what benefits the Company will obtain from them.  These forward-looking
statements reflect management's current views and are based on certain
expectations, estimates and assumptions which may prove to be incorrect.  A
number of risks and uncertainties could cause our actual results to differ
materially from those expressed or implied by the forward-looking statements,
including: (1) a downturn in general economic conditions in North America and
internationally, (2) the inherent uncertainties and speculative nature
associated with mineral exploration, (3) a decreased demand for minerals, (4)
any number of events or causes which may delay or cease exploration and
development of the Company's property interests, such as environmental
liabilities, weather, mechanical failures, safety concerns and labour
problems; (5) the risk that the Company does not execute its business plan,
(6) inability to retain key employees, (7) inability to finance operations and
growth, (8) inability to obtain all necessary environmental and regulatory
approvals, (9) an increase in the number of competitors with larger resources,
(10) other factors beyond the Company's control; These forward-looking
statements are made as of the date of this news release and the Company
assumes no obligation to update these forward-looking statements, or to update
the reasons why actual results differed from those projected in the
forward-looking statements.  Additional information about these and other
assumptions, risks and uncertainties are set out in the "Risks and
Uncertainties" section in the Company's MD&A filed with Canadian security
regulators.

    The TSX Venture Exchange has not reviewed and does not accept
    responsibility for the adequacy or accuracy of the content of this news
    release.




For further information:

For further information: Tel: (778) 328-8848, Fax:(604) 689-1733,
www.canasiaind.com, info@canasiaind.com

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CANASIA INDUSTRIES CORPORATION

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