March 17, 2011, Vancouver, British Columbia - Canaf Group Inc. (TSXV: CAF) ("Canaf" or the "Company") the Canada-registered mining group, today confirmed that negotiations are close to reaching a settlement of its lengthy litigation dispute in Uganda.
In August 2006, Canaf, then known as Uganda Gold Mining, announced the termination of any further investment into its Kilembe Copper-Cobalt Project in Uganda. Since 2007, the Company has been involved in a legal dispute with Kilembe Mines Limited and in April 2009, successfully won an injunction preventing the sale and privatisation of the Kilembe Copper-Cobalt Project by the Government of Uganda. All legal representation for the litigation and negotiations has been conducted by a Ugandan advocates practice on a no-win no-fee agreement with the Company.
The Company has no intention to further invest in the Kilembe Copper-Cobalt Project.
Discussions between the parties are at an advanced stage and Canaf is hopeful that a financial settlement will soon be agreed. However, it is not possible at this stage to give an indication of either the quantum or any likely date by which a settlement will be reached, notwithstanding that Canaf believes that the eventual outcome will be a positive one for its shareholders.
The Company intends to make a further announcement once final agreement is reached between the parties.
Canaf Group Inc. is a junior mining group based in Vancouver, Canada, and with subsidiary offices in the United Kingdom. Canaf owns 100% of Quantum Screening and Crushing (Pty) Ltd., a carbon producing company based in South Africa.
Quantum Screening and Crushing (Pty) Ltd's is one of South Africa's largest producers of calcined anthracite, a product used as a replacement to coke in the manufacturing process of steel and manganese. The company's two largest clients are Mittal Steel and BHP Billiton, world leaders in steel and manganese production respectively. Quantum has a plant in Newcastle, KwaZulu Natal, where its two kilns operate around the clock devolatising the raw material anthracite. The majority of Quantum's feedstock anthracite is supplied by Springlake Colliery, which has reserves in excess of 30 years and is located in the nearby town of Dundee.
Certain information regarding Canaf contained herein may constitute forward looking statements. Forward looking statements may include estimates, plans, expectations, opinions, forecasts, projections, guidance or other statements that are not statements of fact. Although Canaf believes that the expectations reflected in such forward looking statements are reasonable, it can give no assurance that such expectations will prove to have been correct. These statements are subject to certain risks and uncertainties and may be based on assumptions that could cause actual results to differ materially from those anticipated or implied in the forward looking statements. Canaf is under no obligation to update or alter any forward looking statement. These risks include operational, political, currency and geological risks and the ability of Canaf to raise or obtain funds for its operations. Canaf's forward-looking statements are expressly qualified in their entirety by this cautionary statement.
For further information on Canaf Group, visit www.canafgroup.com or see contacts below.
Canaf Group Inc.
Phone: +44 1273 492100
Fax: +44 1273 492175
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy or accuracy of this release.
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