News

April 28, 2009

Canaco Resources Takes In A New Chinese Friend And Hives Off Its Interest In Mexico, Though Not Because Of Swine ‘Flu

By Charles Wyatt

Company directors with brains and balls are putting together deals in the current financial climate that will ensure increased value for their shareholders in the future. The ones cowering, still in shock at the share price rout at the end of last year, are the ones to avoid, as it is their own monthly salaries that are their prime concern. One of those getting on with life is Andrew Lee Smith of Canadian-listed Canaco Resources who has just put together a funding to raise C$2.27 million by selling units consisting of a share and half a warrant at C5 cents each. A company called Sinotech (Hong Kong) Corporation has agreed to take up 70 per cent of this private placement, so there should not be much trouble in obtaining the balance. In fact Canaco’s shares are currently priced at C8 cents and the warrants entitle holders to acquire shares at C7 cents in the first year and C10 cents in the second so the Chinese clearly know a good thing when they see it.

All this is a long way from the glory days of July 2008 when the shares were C30 cents, but it is a privilege given only to very old men to live in the past, as they know only too well what the future holds. Andrew Lee Smith is a pragmatic man. He wants the money and he wants Sinotech on board so he is getting on with it. And no wonder, because the parent company of Sinotech is SinoTex Mineral Exploration, a major Chinese exploration and mine development company, with operations in mainland...