Canaco to spin out Harvest copper project into new company in Tigrai
April. 19 2011
Shares of Canaco Resources (CAN.V: Quote) rose more than 8 percent on Tuesday after the company said it will spin out its Harvest copper project in Ethiopia into a new subsidiary company.
The move will allow the new company to focus on developing the copper-gold-silver project in the Tigray region of Ethiopia, while Canaco will continue to develop its Handeni gold project in Tanzania.
Canaco currently holds a 70 percent stake in the Harvest project. It will transfer that ownership to the new subsidiary, which will be called Tigray Resources.
"The spin-out of Tigray will expose existing Canaco shareholders to significant growth as exploration advances in Ethiopia," Chief Executive Andrew Lee Smith said in a release.