Aurcana receives approval on option to acquire Rosario Property, Mexico and Approval for Issuance of Shares to Penoles for US$1,000,000 payment
February 22, 2007
Aurcana Corporation ("Aurcana" or the "Company") is pleased to announce further to its news release of February 8, 2007, that it has received TSX-Venture Exchange ("TSX-VE") approval on the Option Agreement to acquire a 100% interest in the silver -- zinc -- lead -- gold Rosario Property located in south eastern Sinaloa State, Mexico. Under the terms of the Option Agreement Aurcana has the exclusive option, but not the obligation, to purchase the assets of the Rosario Property (the "Option to Purchase"). Aurcana may, subsequent to its technical and legal review of the Rosario Property agree to execute, within a term of six (6) months following the date of signing the Option Agreement, exercise the Option to Purchase and execute a Sale and Purchase Agreement to acquire the 100% undivided interest in the Rosario Property. In the event Aurcana Mexico executes the Sale and Purchase Agreement, consideration for the purchase of the Rosario Property is US$3,000,000.00 ("Purchase Price"), US$250,000 is due upon signing of the Option Agreement and is subject to the receipt of TSX-VE approval (received). Should the Company proceed with the Purchase Agreement the US$250,000 payment will form part of the Purchase Price. The remaining Purchase Price of US$2,750,000 will be payable over two years and is subject to a guarantee from Aurcana ("Guarantee").
A cash finders fee of US$182,500 is payable to Reyna Mining Engineering S.A. de C.V. upon execution of the Sale and Purchase Agreement and the delivery of the Guarantee.
The Company further advises it has received Exchange approval to amend the terms of the original purchase agreement to acquire the La Negra Mine from Industrias Penoles, SA de CV ("Penoles")to pay the remaining and final payment to Penoles totalling US$1,000,000 by the issuance of 1,114,631 common shares of the Company. The number of shares have been calculated in accordance with the "Discounted Market Price" as defined in the TSX Venture Exchange Policy 1.1.
ON BEHALF OF THE BOARD OF DIRECTORS OF
"Ken Booth", President
For further information, please contact: Ken Booth, President or
Colin Farr, Investor Relations
Phone: (604) 331-9333
Web site: www.aurcana.com
The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company. The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.