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Friday, May 1, 2015

Kariana closes buy of Canna Delivery, changes name

2015-05-01 19:33 ET - News Release

Mr. David Velisek reports
Further to its press release dated March 20, 2015, Kariana Resources Inc. has completed the acquisition of all the issued and outstanding shares of Canna Delivery Systems Inc. pursuant to a share exchange agreement dated March 20, 2015.

Canna's film-strip technologies produce an oral delivery system that can be used for energy elixirs, herbal remedies, and a smokeless alternative option to medical and recreational users of cannabis. Canna's technology produces infused strips (similar to breath strips) that are not only a safer, healthier option to smoking, but also a new way to accurately meter the dosage and assure the purity of the product. The company will license the technology to licensees, which will in turn manufacture CannaStrips where the legal use of marijuana is allowed. Canna chief executive officer Brad Eckenweiler commented: "I believe that the acquisition of Canna Delivery Systems by Kariana Resources is extremely well timed; as the world view of cannabis is changing and the areas of marketability are expanding, the benefit of a smokeless and discreet method of delivery is increasingly more desirable. The benefits of the public market and the expanded visibility that it brings will accelerate the branding and marketing efforts for the CannaStrips technology."

Pursuant to the terms of the agreement, the company has issued to Canna's shareholders, pro rata, a total of 7.8 million common shares of the company at a deemed price of 15 cents per performance share. The performance shares are subject to escrow provisions pursuant to the agreement and will be released upon achieving certain future financial milestones. In connection with the transaction, the company issued 83,333 common shares of the company to an arm's-length finder for assistance in closing the transaction. The company has agreed to issue, and has reserved for issuance, an additional 565,000 finder shares upon achieving certain future financial milestones.

In addition, the company has settled certain debt with creditors of the company by converting the debt payable into shares of the company at a conversion price of 15 cents per share. A total of $177,450 of debt was extinguished and 1,183,000 shares of the company were issued. Further to the company's press release dated April 7, 2015, with respect to the completion of the company's non-brokered private placement financing of 5,168,757 subscription receipts, as the release condition of the completion of the transaction has now been met, the subscription receipts have been automatically converted into 5,168,757 common shares and 2,584,379 common share purchase warrants. In connection with the financing, the company issued 254,768 units to arm's-length finders. Each finder unit consists of one common share and one-half of one non-transferable common share purchase warrant, which entitles the finder to purchase an additional common share until May 1, 2016, at a price of 30 cents per share and at a price of 45 cents until May 1, 2017. All securities issued in connection with the financing are subject to a four-month hold period that expires on Aug. 3, 2015.

In connection with the transaction, the company is pleased to announce the appointment of Mr. Eckenweiler to the board of directors of the company. Mr. Eckenweiler is an executive with worldwide business experience in operations, corporate finance and global securities markets. Mr. Eckenweiler was a director and CEO of Canna and was recently a director and CEO of Triton Emission Solutions Inc., a company engaged in the business of emissions abatement and control technologies for the marine industry. The transaction was a fundamental change under the policies of the Canadian Securities Exchange. As such, completion of the transaction was subject to a number of customary conditions, including approval of the CSE. Trading of the company's shares on the CSE has been halted in connection with the announcement of the transaction, and is expected to resume when the CSE issues its final approval. Pursuant to CSE requirements, the transaction has been approved by the majority of the shareholders of the company.

In connection with the transaction, the company changed its name to Lifestyle Delivery Systems Inc. and its trading symbol to LDS (formerly KAA) to better reflect the company's new business.

Canada Carbon's Miller achieves 99.999% carbon purity

2015-05-01 12:09 ET - News Release

Mr. Bruce Duncan reports
Canada Carbon Inc. has provided the results of thermal upgrading of its Miller hydrothermal lump/vein (HLV) graphite concentrate, conducted by a graphite processing facility that processes synthetic graphite for the nuclear industry. A randomly selected run-of-mill sample of the flotation concentrate produced during pilot-plant flotation trials conducted at SGS Canada (Lakefield) was directly upgraded to 99.9998 per cent total carbon purity through thermal treatment alone. This thermal process eliminates the use of harsh chemical treatments commonly used to upgrade graphite, such as caustic bake or acid leach, which not only involve strong acids or bases that can chemically damage the graphite crystals, but which also inevitably create hazardous wastes. Most hydrometallurgical processes also involve numerous physical processing steps, which can mechanically damage the graphite crystals. The passive thermal treatment process described here, in contrast, involves only the minimal handling associated with the loading and unloading of crucibles.
A randomly selected 10 kilogram ("kg") sample of Miller flotation concentrate was withdrawn from stockpiled material stored at SGS. The sample was dried in an oven, homogenized to ensure uniformity, and then split into four sub-samples of approximately 2.5 kg each. The results reported here are with respect to one sub-sample, based on a preliminary test using the proprietary thermal upgrading process employed by a commercial processor of synthetic nuclear graphite. This processer has been producing ultra-high purity synthetic graphite for use in the nuclear industry, utilizing customized high temperature furnaces. Their proprietary processes vary to target specific elements and compounds. Contaminant-specific process optimization trials will be applied to the remaining Miller flotation concentrate samples based on the Glow Discharge Mass Spectrometry ("GDMS") assay results reported here. The results of those further trials will be reported, when available.

A GDMS assay was conducted on the thermally treated Miller HLV graphite by Evans Analytical at their facilities in Liverpool, NY. Ultra-trace amounts of six elemental contaminants were detected: boron 100 parts per billion ("ppb"), sodium 400 ppb, copper 100 ppb, zinc 80 ppb, iron 90 ppb, and silicon 1700 ppb. Statistical analysis of the GDMS results obtained from caustic bake upgrading of the Miller HLV graphite concentrate (see press release dated November 18th, 2014) had led to the development of a working hypothesis that the contaminants identified were associated with the hydrothermal matrix, rather than with the crystalline graphite itself. Under the simplifying assumption that the silicon content was a surrogate measure of the primarily silica-based hydrothermal matrix, correlational analysis of 10 measured contaminants with silicon yielded Pearson correlation coefficients ranging between 0.94 and 1.00. Linear regression of the same data yielded very small y-intercepts. The results reported here provide strong support for the hypothesis, as silicon levels in the flotation concentrate were reduced 99.94% by thermal treatment, which is associated with the removal of all but ultra-trace residual amounts of a small number of contaminants. Executive Chairman and CEO Mr. R. Bruce Duncan stated, "We are extremely pleased to learn that an existing graphite upgrading method, which is already in use to treat synthetic graphite being supplied to the nuclear industry, can be used to upgrade the Miller HLV graphite concentrate to such an extremely pure form. Despite the success of this thermal treatment trial, these results are themselves preliminary, and further optimization of the process will proceed as soon as possible. We have already begun the process of submitting this upgraded material for further testing by the nuclear industry.

As we reported on October 3rd, 2014, the pilot plant flotation concentrate was not only found to exceed 99% C(t) overall purity, but also met the nuclear graphite purity criteria. With these new results in hand, demonstrating proof of concept for the direct upgrading of our Miller HLV graphite concentrate to approximately 6N purity, we have already entered into advanced discussions with potential end-users. Our intent is to obtain indicative pricing for both the flotation concentrate and the thermally upgraded material, which can then be included in our Preliminary Economic Assessment (PEA) for the Miller Project. Additionally, not only has Canada Carbon reached the highest purity known to us in the natural graphite industry, but we accomplished this utilizing a one-step method which preserves the graphite's natural crystal structure. Due to these exceptional purity results for Canada Carbon's thermally treated Miller graphite, we anticipate attracting pricing which fully reflects its rare qualities." Qualified PersonDr. Charbonneau, Ph.D., P. Geo #290 (an Associate of Inlandsis Consultants s.e.n.c.) is an Independent Qualified Person under National Instrument 43-101, and has reviewed and approved the technical information provided in this news release.