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| | June 07, 2007
Canaf Group Inc. (Formerly Canafrican Metals and Mining Corp.): South African Calcining Acquisition Approved
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| | Vancouver, BC--Canaf Group Inc. (TSXV: CAF) ("Canaf" or the "Company") announced that the TSX Venture Exchange has conditionally approved an agreement to purchase 85% of the issued and outstanding shares of Quantum Screening and Crushing (Proprietary) Limited, ("Quantum") a private South African company carrying on the business of the processing of coal products into carbon.
The agreed upon purchase price for 85% of Quantum is 24,000,000 Rand, or approximately $4,000,000. It is anticipated that up to approximately 8,000,000 Rand of the purchase price will be satisfied by the issuance of approximately 5,929,876 shares from treasury. The Company is also negotiating to purchase the remaining 15% of the company for approximately 5,000,000 Rand ($850,000) in total, to be paid in both shares and cash. Highlights from the February 28, 2006 audited statements of Southern Coal, on a non-consolidated basis, include:
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2006, in Rand 2005, in Rand
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Non-current assets 10,047,874 11,077,405
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current assets 9,449,361 10,070,307
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current liabilities 9,519,609 9,953,164
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Non-current liabilities 6,283,750 9,266,409
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Capital and Reserves 3,693,876 1,928,039
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Income 55,144,553 45,518,616
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Net Profit after tax from Ordinary Activities 4,127,433 2,608,855
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Calcining is a process whereby anthracite coal is fed through a rotary kiln (at temperatures between 1000 and 1200 degrees centigrade and devolatilisation takes place - sulphur content is lowered and gases such as nitrogen are burnt off. The final product is calcine which is a coke substitute with a high carbon content - 82 - 85%. The final product is used as a reductant in the manufacture of steel and manganese. Quantum, through its wholly owned subsidiary Southern Coal (Proprietary) Limited, ("Southern Coal") has been profitably carrying on this business for the last 3 years. The Company expects that it will be able to expand the current business of Southern Coal, who have as current customers some of the largest steel and manganese producing companies in the world, including BHP Billiton and Mittal Steel.
This acquisition is subject to normal closing considerations, which are underway. The Company intends to file on SEDAR a filing statement in respect to this acquisition pursuant to the rules of the TSX Venture Exchange in due course.
David Way, President and CEO
Head Office
Brad Jefferson
T: 604.767.3977
F: 604.682.2275
This release includes certain statements that may be deemed "forward-looking statements". All statements in this release, other than statements of historical facts, that address future production, marketing success, reserve potential, exploration drilling, exploitation activities and events or developments that the Company expects are forward-looking statements. Although the Company believes the expectations expressed in such forward-looking statements are based on reasonable assumptions, such statements are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking statements. Factors that could cause actual results to differ materially from those in forward-looking statements include market prices, exploitation and exploration successes, continued availability of capital and financing, and general economic, market or business conditions. Investors are cautioned that any such statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in the forward-looking statements.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release |
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| | You can view the Next News Releases item: Thu Jun 14, 2007, Canaf Group Inc. Retains Ascenta Capital Partners Inc. to Provide Investor Relations Services & Termination of JV Option
You can view the Previous News Releases item: Mon May 14, 2007, Acquisition announced
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