Canasia Industries Corporation: Acquires Quebec Rare Earth Property
VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 18, 2010) - Canasia Industries Corporation (TSX VENTURE:CAJ)(OTCBB:CANSF)(FRANKFURT:45C) ("Canasia") wishes to announce that it has entered into an option agreement with a arms-length vendor to acquire 31 contiguous (1,456 hectares; 3,598 acres) of rare earth mineral claims in Quebec. These new claims are in close proximity to Commerce Resources Corp.'s ("Commerce") Eldor Rare Earth Prospect. According to Commerce's website "The Eldor Property is at a relatively early stage of exploration with historic exploration results indicating considerable potential for carbonatite-hosted niobium and tantalum mineralization. Following its acquisition from Virginia Mines Inc. in 2007, Commerce Resources completed a comprehensive exploration program to confirm the historic mineralization at the property. The Eldor Carbonatite is similar in size to, or slightly larger than, the present and past producing Canadian carbonatite complexes Oka, and St. Honore, both located in Quebec. It is also comparable in size to the Araxa Carbonatite Complex in Brazil, which is about 4.5 kilometres in diameter."
Terms of the option would be for Canasia to issue five million shares and pay $17,500 upon TSX Venture approval, along with a work commitment of $150,000 in years one, two and three, and $400,000 in year four. A finder's fee may be payable according to TSX Venture guidelines. This transaction is subject to TSX Venture exchange approval.
Negar Adam, president of Canasia stated, "We continue to add projects that may be able to add value to Canasia. In addition to this new rare earth prospect, but we are also now getting closer to the start-up of the Clone prospect near Stewart, BC, which is Canasia's flagship property. The Clone returned significant grades as high as 44.75 g/t Au over 12.80 metres announced on October 22, 2009."
In other news Canasia has been advised that the Reed Lake, Manitoba 2010 drill program returned non-economic drill intercepts. Further evaluation is now being planned at Reed Lake.
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Canasia has a well diversified portfolio of prospects. Canasia's current prospects include the following: (a) The Clone Gold prospect in Stewart, BC, that has recently returned grades as high as 44.75 g/t Au over 12.80 metres (announced October 22, 2009); (b) The Debut Gold prospect in NE Nevada under lease agreement to Kinross Gold; (c) 55,300 contiguous acres at Reed Lake, Manitoba; (d) Potash leases under option (e) 130,500 acres prospective for Coal in SE Saskatchewan; (f) 180,000 acres prospective for Lithium in Alberta; (g) and mineral claims covering an area of approximately 9,200 hectares, located north and northwest of the El Oro -- Tlalpujahua Gold/Silver belt in the states of Guanajuato and Michoacan, Mexico.