Cancana Resources  said it has made the US$5 million investment as planned in Brazil Manganes Corp, the joint venture between Cancana and Ferrometals governing what was formerly known as Rio Madeira, the producing manganese operations Canacana acquired located adjacent to its own manganese claims in Brazil.

The investment, which entitles Cancana to a 30 percent stake in the JV, was made under the terms of the deal initially announced late last year, which was revised again in February.

"It is good news for Cancana shareholders that the delays in earning into the BMC JV are been resolved," said president and CEO Anthony Julien, who took over the helm in July after former chief executive Andrew Male stepped down.

"The Brazilian joint venture is moving ahead with exploration programs with aerial geophysics commencing in the next 30 days (covering 7,340 line kilometers) and ground surveys over four initial test sites.

"The surveys will assist in defining extensions to the boulder fields that supply current mining operations and will also target primary manganese vein structures at depth."

The company said that in addition to exploration, the joint venture will be implementing work practices and programs to align the workforce with Canadian and international mining safety standards.

Cancana's chief executive Julien is also the president of Ferrometals, a subsidiary of funds managed by the Sentient Group, which develops industrial mineral projects in Brazil and the US.

The Cancana-Ferrometals joint venture owns a producing manganese mine operation that has been operating for the past eight years, producing lump ore of varying sizes.

In May, Cancana provided an update on its trial mining operations at its own Valdirao manganese mine area in Brazil. As of May 8, Cancana said it had transported about 400 tonnes of large cobble manganese ore to the Rio Madeira processing plant, after receiving the trial mining license in November.           

• [Editor:Sophie]