NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES AND NOT FOR DISSEMINATION IN THE UNITED STATES
MONTREAL, May 15, 2015 /CNW Telbec/ - Ferrometals BV ("Ferrometals") announces that, in connection with a financing announced by Cancana Resources Corp. ("Cancana") on April 23, 2015, it has acquired ownership and control over 1,656,713 common shares of Cancana (the "Purchased Shares") on May 8, 2015, representing approximately 2.03% of the outstanding common shares of Cancana (the "Cancana Shares").
Ferrometals has ownership and control over 38,612,010 Cancana Shares (including the Purchased Shares), representing approximately 47.33% of the outstanding Cancana Shares, the right to acquire 13,857,656 Cancana Shares through 13,857,656 common share purchase warrants of Cancana ("Cancana Warrants"), and a convertible secured debenture in a principal aggregate amount of US$1.5 million (the "Debenture").
Assuming the full exercise of the 13,857,656 Cancana Warrants as well as the conversion in full of the principal amount of the Debenture, Ferrometals would acquire ownership and control over a maximum of 62,449,380 Cancana Shares (including the 38,612,010 Cancana Shares over which Ferrometals currently has ownership and control and using the Bank of Canada noon exchange rate on December 22, 2014, as per the terms of the Debenture). These combined holdings would represent approximately 59.24% of the outstanding Cancana Shares, calculated on a partially diluted basis assuming the full exercise of the 13,857,656 Cancana Warrants and the full conversion of the principal amount of the Debenture only.
Ferrometals acquired the Purchased Shares for investment purposes only and not with a view to materially affecting control of Cancana.
Ferrometals relied on section 2.10 of National Instrument 45-106 – Prospectus Exemptions for the purchase of the Purchased Shares as the purchase price exceeds $150,000 and was paid in cash.
SOURCE Ferrometals BV
For further information: or to obtain a copy of the Early Warning Report filed by Ferrometals, please contact Anthony Julien at +61 447 573 071.