Monday, July 5, 2010

Canfe Ventures signed letter agreement with BVI-registered companies

A capital pool company Canfe Ventures Ltd. entered into a letter agreement with companies Fame Oriented Holding Limited, Baron Natural Resources Co. Ltd. (BNR) and Eagle Action Co. Ltd. (EA), all of them being registered in the British Virgin Islands, to acquire 87.5% of the issued and outstanding shares of Fame. The agreement was signed on June 4, 2010.

BVI company Fame Oriented Holding and its wholly-owned subsidiary Nevada-incorporated Golden Fame (USA) Inc. are privately held junior mining companies holding the rights to earn a 100% interest in the Arizona-located Goldridge Property.

By terms of the agreement, Canfe shall issue to the vendors 16,000,000 of its common shares at a deemed price of US$0.15 per share. That makes approximately 53% of the outstanding shares of Canfe immediately after the closing of the transaction. Upon completion of transaction, the BVI company shall repay BNR's shareholder loan totaling US$400,000.

Canfe will issue 1,016,667 common shares to an arm's length party as a finder's fee in connection with the transaction.

Trading of the common shares of the company has been halted in connection with this news release, and will recommence at such time as the TSX-V may determine, upon the completion of certain requirements pursuant to TSX-V Policy 2.4.