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Canaco Resources Inc. announced it has agreed to acquire nine additional prospecting licenses in Tanzania totalling approximately 1,200 square kilometres.
The properties are strategically located in the Handeni region of eastern Tanzania, location of the Company's Handeni project. Canaco's land holdings in the Handeni region now total approximately 1,300 square kilometres. President and CEO Andrew Lee Smith said: "These acquisitions build on our strategy to establish and maintain a dominant land position in the Handeni region, which we believe hosts potential to become an important new gold district. The new properties are all located in areas with known prospective geology and the presence of artisanal gold workings." Consideration for these properties, which were acquired through Canaco's Tanzanian subsidiary, consisted of cash payments and included the issuance of 70,000 common shares. The acquisitions are subject to regulatory approval, and on issuance, the shares will have a four-month hold period. Canaco discovered the Handeni project in 2009 and since that time has reported results from 125 holes. The Company currently has five rigs drilling on the project and plans to publish an initial resource estimate by the end of 2011. |
