Cancana Resources Corp. (CVE:CNY) has signed a land lease agreement for its Valdirao manganese mine site in Brazil, the company announced Friday, giving it unrestricted access to the land as it begins mining operations and transitions to a producer.
The company also announced today that it recently completed the filing of its annual audited financial statements, as well as its first quarter interim statements, and as a result is up to date with its filings, thereby lifting the management cease trade order by the Alberta Securities Commission.
Cancana holds the distinction of being one of only four companies listed on the Toronto Stock Exchange that works in manganese, and is definitely "the preeminent one from a grade point of view, a development point of view, and from a resource point of view", according to CEO and director Andrew Male.
It is a bold claim for the Calgary-based junior, but one backed up by a flagship asset in Brazil boasting what is by industry standards a grade of rare quality on a highly prospective property. Little wonder then that Cancana is moving rapidly to production, with its main focus settling on the Valdirao project. One massive advantage that accrues to the project is its proximity to infrastructure -- Valdirao is within 20 kilometres of the Brazilian National Highway, which itself is accessible by municipally-maintained roads, for transportation of ore out of region.
Last month, the company announced that it had been issued a trial mining license on its manganese claim, providing approval for mining operations, extraction, processing and sales of manganese ore. Production at the site is due to begin in the next couple of weeks, with preliminary work having already been carried out, or currently in its final stages.
The Canadian junior, which has been working with local contractors to complete the mining plan and budgets, has completed the site survey, and determined the initial mine site and road access network, which covers about 17 hectares.
The land lease agreement announced Friday with the landowner is for the use of the land during the period in which mining is taking place, and provides Cancana with the right to install fences, roads and develop the overall mine site, according to its press release.
"The signing of this Land Lease Agreement and the issuance of the Guia, allows us to now to be able to commence mining excavation, ore processing and sales, which will be the final stage in transitioning from exploration to production," said president and CEO, Andrew Male in a statement released Friday.
"We would like to thank Valdirao, the land owner, for his cooperation during this process and look forward to a positive working relationship with him."
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.