MONTREAL, May 30, 2013 /CNW Telbec/ - Kanosak Capital Venture Corporation (TSXV: KKV) (the "Corporation" or "Kanosak") announces that today it received disinterested shareholder approval for its previously-announced acquisition of three properties located in Burkina Faso, Africa.
As disclosed on April 3, 2013, Kanosak entered into a definitive share purchase agreement (the "Agreement") to acquire 100% of LMZ GOLD Burkina SARL ("LMZ") a subsidiary of Gondwana Gold Inc. ("Gondwana"), a publicly-listed company on the TSX Venture Exchange. Under the terms of the Agreement, Kanosak has agreed to acquire all of the shares of LMZ, resulting in Kanosak indirectly owning 100% of the exploration and mining rights for the three LMZ properties in Burkina Faso, known as the Gabou, Dianvour and Ouaraba properties (the "Properties"). A subsequent press release on May 24, 2013 provided additional technical and other information regarding the Properties.
As consideration for the Properties, Kanosak has agreed to issue 2,000,000 common shares on closing, a second tranche of 3,000,000 common shares upon the release of a mineral resource estimate of at least 1,000,000 ounces of gold on the Properties and a third tranche of 3,000,000 common shares upon the preparation of a bankable feasibility study on the Properties, for a total potential payment of 8,000,000 common shares. Kanosak has also agreed to pay Gondwana $30,000 in cash, 50% of which is refundable on closing. As previously disclosed, LMZ has incurred approximately $3 million in exploration costs on the Properties since the issuance of the necessary permits, which costs have since been written off.
For further details, please see Kanosak's press releases of April 3 and May 24, 2013.
Kanosak also wishes to clarify that in its press release of May 24, 2013, the reference to a "management information circular to be prepared" in connection with the transaction should be understood to refer to its circular dated May 3, 2013.
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
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