Candente Resource Corp.-Financial Results For Quarter Ended June 30, 2009 and Canariaco Project Update
August 12 2009 - 4:00AM
Marketwired
Candente Resource Corp. (TSX: DNT)(BVLAC: DNT)(WKN: GW4)
("Candente" or the "Company") announces financial results for the
quarter ended June 30, 2009 ("Q2-2009"). All amounts in this
release are in U.S. dollars unless otherwise stated.
The Company posted net earnings of $179,883 or $nil per share in
Q2-2009, compared to a net loss of $1,114,984 or $0.02 per share in
the three months ended June 30, 2008 ("Q2-2008"). Earnings posted
by the Company in Q2-2009 follow a foreign exchange gain of
$450,014 in the quarter, of both a realized and unrealized nature,
due to fluctuations of the Canadian dollar and the Peruvian nuevo
sol with respect to the U.S. dollar during the quarter, and are not
indicative of projected future results. On a year-to-date basis the
Company posted a loss of $215,611 to June 30, 2009, compared to a
loss of $2,164,501 in the six months ended June 30, 2008.
The sharp reduction in net loss between the comparative three
and six month periods follows variations in foreign exchange gains
or losses, lower stock-based compensation expense and reduced
general and administrative expenses due to the implementation of
cost savings initiatives by management in response to the global
economic crisis and the sharing of certain overhead costs with
Candente Gold Corp. ("Candente Gold") as of May 2009.
The Company's major general and administrative expenses in
Q2-2009 were salaries and management fees of $57,709, audit and
accounting fees of $46,552 and stock-based compensation of
$46,129.
Mineral property expenditures were $572,568 in Q2-2009 and a
reduction in carrying value of $1,091,694 in connection with the
transfer of the El Oro property to Candente Gold. At June 30, 2009,
and since inception, the Company's mineral properties' expenditures
now total $40,583,370.
At June 30, 2009, the Company had 81 million common shares
outstanding plus 6.8 million stock options and 4.4 million share
purchase warrants, for a fully-diluted total of 92.1 million common
shares.
At June 30, 2009, the Company had cash and cash equivalents of
$1,624,682 and working capital of $618,573.
Candente Management is very pleased to see the continuation of
the strengthening in the price of copper and plans to resume
studies on the Canariaco Norte project. The initial work plan will
focus on resumption of metallurgical studies and a re-evaluation of
the economics of the Canariaco Norte project. Factors which are
expected to benefit the project economics include: 1) decreased
mine and process equipment capital costs; 2) reduced capital
construction costs and shortening of the project construction
schedule; 3) lower concentrate transport costs due to plans for a
new port to be built at Eten, which is much closer to the Canariaco
project than the port identified in the Preliminary Economic
Assessment ("PEA") and, 4) new tax incentives in Peru which may
provide tax credits for qualifying infrastructure development.
Management is also evaluating strategies for financing ongoing
requirements including the program described above which is
estimated to cost less than $400,000. Looking ahead, Management
plans to resume work towards completion of prefeasibility and
definitive feasibility studies for the Canariaco Norte project.
In addition, the Company plans to resume exploration of the
Canariaco Sur copper porphyry discovery announced last fall (see
Candente news release October 2, 2008) and the Quebrada Verde
copper porphyry target. Canariaco Sur and Quebrada Verde are
located within 4 kilometres of the Canariaco Norte deposit and the
discovery of additional deposits would have the potential to
significantly enhance the overall Canariaco project economics
through use of common mine and process infrastructure.
For a detailed analysis of the financial results presented
above, refer to the June 30, 2009 Unaudited Consolidated Financial
Statements and Management's Discussion and Analysis available on
the Company's website at www.candente.com and at www.sedar.com.
About Candente Resource Corp.
Candente is a diversified exploration and development company
with copper, gold, silver, and zinc projects in Peru and Mexico.
Candente's Management Team and Board of Directors are senior mining
industry executives with a track record in the discovery and
development of copper, gold and silver deposits. Candente
subscribes to principles, which ensure that exploration and
development activities are consistent with best practice and
beneficial to the local communities.
This news release may contain forward-looking statements
including but not limited to comments regarding the timing and
content of upcoming work programs, geological interpretations,
receipt of property titles, potential mineral recovery processes,
etc. Forward-looking statements address future events and
conditions and therefore involve inherent risks and uncertainties.
Actual results may differ materially from those currently
anticipated in such statements. Candente relies upon litigation
protection for forward-looking statements.
CAUTIONARY NOTE TO U.S. INVESTORS
We advise U.S. investors that this news release uses terms which
are not recognized by the United States Securities and Exchange
Commission ("SEC"), including "mineral resources", "measured
resources", "indicated resources" and "inferred resources". The
estimation of measured and indicated resources involves greater
uncertainty as to their existence and economic feasibility than the
estimation of proven and probable reserves. U.S. investors are
cautioned not to assume that mineral resources in these categories
will be converted to reserves. The estimation of inferred resources
involves far greater uncertainty as to their existence and economic
viability than the estimation of other categories of resources.
U.S. investors are cautioned not to assume that estimates of
inferred mineral resources exist, are economically mineable, or
will be upgraded into measured or indicated mineral resources. U.S.
investors are cautioned not to assume that mineral resources in any
of these categories will be converted into reserves.
Contacts: Candente Resource Corp. Joanne C. Freeze, PGeo. CEO +
1 (604) 689-1957 Candente Resource Corp. Sean Waller, P. Eng.
President +1 (604) 689-1957 communications@candente.com
www.candente.com
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