Canaco Resources said this week that its shareholders had approved of the spin-out of Tigray Resources Inc. Part of the transaction will be the transfer of 4 million dollars and Canaco's 70 percent interest in the Harvest Mining PLC, which owns the Harvest VMS Project in Ethiopia, to Tigray. Sufficient funds will also be transfered for the recommended first phase drill program.
The spin-out transaction awaits final court approval and acceptance from the TSX Venture Exchange - expected to be obtained on 27 June 2011.
When the spin-out is completed, Tigray's initial mandate at the Harvest Project will be to complete geophysical, geochemical and geological 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, said that existing shareholders of Canaco would grow significantly as a result of the spin-out of Tigray and the progress of exploration in Ethiopia.
That would also allow Canaco to go on dedicating its resources to explore and develop the Handeni Gold Project in Tanzania. Based on the due diligence drilling completed in 2010, the CEO of Canaco says that the Harvest Project could discover large, near-surface gold-enriched poly metallic VMS deposits.
