Canasia Receives Comfort Letters for 100% of Its Recent Coal Permit Applications
Canasia Industries Corp. has received a comfort letter from the Saskatchewan Ministry of Energy and Resources covering 100 per cent of the coal permit applications applied for (announced on July 11, 2008). This letter indicates that Canasia is first in line on all of its applications. These applications have been given coal prospecting permitting numbers 5276 inclusive through 5335. This application covers 5 contiguous townships (approx 115,000 acres). These new applications are near Goldsource Mines Inc., as well as bordering a coal prospect that recently announced it had a historic drill hole that has an approximate 18.84-metre-thick coal interval between 47.70 metres and 66.54 metres.
The comfort letter confirms that Canasia is first in line for all the permits applied for and will be given priority sequence. The final granting of the coal permits is dependent upon government regulatory approval and time required to process the applications, which is at the discretion of the government of Saskatchewan. Granting of coal permits is subject to a final review of each application indicating the nature of the work and money to be expended. The comfort letter is not a guarantee that all or any of the permits will be issued to Canasia, only that Canasia is first in line for the permits. There is also no guarantee that if Canasia receives the permitted properties any economic amounts of coal will be found.
Graeme Sewell, a director of Canasia, stated, “Management is moving forward with the coal applications and is optimistic about the coal prospects of the company.”