Welcome to Tigrai Online, up to date news that matters!

Canaco to spin out Harvest copper project into new company in Tigrai

Tigrai Online
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.

Source, Reuters Read more