Closing Financing of $9 Million and Listing of Candente Gold Corp.
December 31 2009 - 4:00AM
Marketwired
Candente Resource Corp. (TSX: DNT)(BVLAC: DNT)(WKN: GW4) ("Candente
Resource") and Candente Gold Corp. ("Candente Gold") are pleased to
announce the closing on December 30th of three tranches totalling
$9,028,130 in the previously announced private placement offering
of common shares of Candente Gold (the "Financing").
Exploration will commence in January on the El Oro property in
Mexico. A program of underground drifting and drilling will target
extensions to high-grade ("bonanza") shoots in the San Rafael Vein,
which produced in excess of 4 million ounces of gold and 44 million
ounces of silver historically from the uppermost 150 to 250 metres.
The El Oro veins are believed to be similar to those in other mines
in Mexico, such as: Pinos Altos, Fresnillo and Guanajuato, where
gold and silver occurs over 600 to 900 metres vertically.
Candente Gold will start trading on the TSX under the symbol of
"CDG" on January 4th, 2010 (the Ex-Distribution Date). Candente
Resource will change its name to Candente Copper Corp. on December
31st, 2009. "Shareholders of Record" of Candente Resource as at the
close of business on Wednesday, January 6, 2010 (the "Record
Date"), will be issued one common share of Candente Gold for every
five common shares of Candente Resource held as of the Record Date.
In order to be a Shareholder of Record on the Record Date, Candente
Resource shares must be acquired by December 31st 2009. This is in
accordance with the Plan of Arrangement details of which are
contained in the June 16th 2009 and July 8th, 2009 news releases of
Candente Resource and Candente Gold.
A total of 22,570,325 units have been sold in the Financing.
Each unit consists of one common share in the capital of Candente
Gold ("Share") and one-half of one share purchase warrant
("Warrant"). Each whole Warrant will be non-transferable and
exercisable for a period of 24 months (until January 4th 2012) to
purchase one additional Share at a price of $0.60 per Share.
All Shares issued pursuant to the Financing will be subject to a
four month hold period to May 5, 2010. Insiders have purchased 4.4%
of the units issued pursuant to the Financing.
Candente Gold has paid to agents assisting with the financing a
total of $294,138 in cash commissions and 735,345 in Broker
warrants which equal 6.5% of the gross proceeds from the sale of
the units the finders each made pursuant to the Financing, together
with broker's warrants to purchase that number of units that is
equal to 6.5% of the aggregate number of units they sold pursuant
to the Financing. Each broker's warrant is exercisable for a period
of 24 months to purchase one additional Share at a price of $0.60
per Share.
The net proceeds of the Financing will be used to fund
exploration and development activities on the El Oro gold-silver
property in Mexico, Candente Gold's portfolio of earlier stage
gold-silver properties in Peru and for general corporate
purposes.
Mark Pryor, Pr.Sci.Nat., Independent Consultant and Joanne C.
Freeze, P.Geo., President and CEO, are the Qualified Persons as
defined by National Instrument 43-101 and have reviewed and
approved the contents of this release.
About Candente Resource Corp and Candente Gold Corp.
Candente's Management Teams and Boards 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 whereby 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.
NR 270
Contacts: Candente Resource Corp. Walter Spagnuolo Investor
Relations + 1 (604) 689-1957 Candente Resource Corp. Joanne C.
Freeze, P.Geo President & CEO + 1 (604) 689-1957 Candente
Resource Corp. Sean Waller, P.Eng. Vice-President + 1 (604)
689-1957 communications@candente.com www.candente.com
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