Cannindah Resources (ASX: CAE) is one the latest mining stocks to blow into the thriving cannabis and hemp market after its wholly-owned subsidiary Cannindah Bioceutical Distribution Pty Ltd cemented its agreement with Annabis Hemp.
The agreement with Annabis Hemp gives Cannindah Bioceutical the exclusive right to sell and market Annabis Hemp’s products throughout Australia.
However, the agreement remains subject to Annabis Hemp’s products complying with Australian standards.
Czech Republic based Annabis Hemp is a natural cosmetics company that develops “high-quality” hemp products and food supplements. According to Cannindah Resources, Annabis Hemp’s products are underpinned by its many years’ experience and relationships with cosmetics experts.
Cannindah Resources added that Annabis Hemp customers use the products for a range of needs with “outstanding results”.
The agreement between Annabis Hemp and Cannindah Bioceutical comes after months of discussions and due diligence.
“Once we have satisfied Australian compliance requirements, we will then focus on growing the Annabis brand presence within Australia,” the company stated.
Annabis Hemp’s products are currently sold in many EU countries including the UK, France, Spain and Italy.
Its products are also available in Switzerland, Chile and Peru.
The diversification into the hemp space adds to the Cannindah Resources’ existing mineral exploration activities.
The company is earning into the Piccadilly project in Queensland which is prospective for gold and encompasses 174.35 square kilometres.
An exploration target of 53,440 ounces of gold has been estimated for Piccadilly. However, drilling and further exploration are required to meet JORC compliance standards.
Cannindah Resources is also exploring its wholly-owned Mount Cannindah project which is 100km south of Gladstone in Queensland.
The company has identified several prospects for evaluation and is firming up a copper, molybdenum and gold mineralised system.
Mount Cannindah has a resource of 5.5Mt at 0.92% copper and 0.34g grams per tonne gold.
After reaching a $0.034 high today, Cannindah Resources’ share price had dipped to $0.025 by mid-afternoon.