Cadan Announces Mining Group Limited Signs Formal Agreements for 80% Interest in Comval Project
(firmenpresse) - VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 12/23/11 -- CADAN RESOURCES CORPORATION (TSX VENTURE: CXD)(FRANKFURT: AOMZ25) Further to the company's announcement of November 7, 2011, Cadan is pleased to report that it has signed a formal share purchase agreement and facilitation agreement (the "Formal Agreements") with Mining Group Limited (ASX: MNE) ("Mining Group" or "MGL") whereby Mining Group may acquire an 80% interest in the Comval copper-gold project located in the Compostella Valley, Philippines. Cadan will retain a 20% equity interest in the project, which is free carried until the Mining Group has incurred a minimum of AUD$48 million of expenditures on the Comval Project.
The Formal Agreements provide Cadan with the right to acquire up to a 17% equity position in the Mining Group on a fully diluted basis, and the right to nominate two directors to MGL's board for so long as it holds at least 10% of the issued shares in MGL, below which it shall be entitled to nominate one director to MGL's board.
The terms of the Formal Agreements provide that Mining Group will acquire an 80% interest in Philco Mining Corporation ("PMC"), being Cadan's Philippine based affiliate which holds Exploration Permits 000001-XI and 000002-09-XI ("Project Tenements"), comprising the Comval project. Unless otherwise mutually agreed, closing is scheduled for January 17, 2012. ("Closing").
Terms for the acquisition of 80% of the Comval Project
The Formal Agreements contemplate that among other items, the following will occur at Closing:
The cumulative qualifying exploration expenditures must be incurred, or funded in cash contribution to PMC in lieu thereof, within the time frames provided above, failing which MGL's interest will be diluted at the rate of 1.1% per AUD$1 million in deficiency or part thereof. The time frames for incurring the cumulative qualifying expenditures may be extended by an additional year in certain limited circumstances related to delays in approvals or permits to the extent they are beyond the control of MGL.
Following the Sole Funding Period, Cadan and MGL will be required to contribute to further costs in proportion to their interests or their equity interest will be subject to dilution on a straight-line basis.
The Formal Agreements also provide that the following additional payments will apply:
Closing of the transactions contemplated in the Formal Agreements is subject to various conditions precedents, including transferring certain assets of PMC to other Philippine entities affiliated with Cadan.
Option to Acquire 80% of the Batoto Gold/Silver Project
The Formal Agreements provide that on Closing Cadan will grant MGL an option to acquire an 80% interest in the Batoto Gold/ Silver project held by Cadan on the following terms:
If MGL exercises the option, it must also incur qualifying exploration expenditures of AUD$30 million or have its interest diluted at the rate of 1.5% for each AUD$1 million shortfall (or part thereof). MGL will free carry Cadan's 20% interest in Batoto until it has spent expended the qualifying exploration expenditures as follows:
The parties have agreed to prepare and execute a separate agreement in relation to the Batoto Option.
On behalf of the board of directors,
Robert Butchart, President / CEO
For further information visit our website at or email: .
Forward Looking Statements
This news release may contain forward-looking statements. 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. Particular risks applicable to this press release include risks associated with planned production, including the ability of the Company to achieve its targeted production outline due to regulatory, technical or economic factors. There is no guarantee that the transactions referred to in this press release will close. There are numerous risks associated with exploration and development of mineral projects, including commodity prices, permitting issues, local conditions, ability to finance, and as a result there is no guarantee that the projects referred to above will ever be economically viable. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through or the Company's page on SEDAR at .
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Contacts:
Cadan Resources Corporation
Robert Butchart
President / CEO
Cadan Resources Corporation
John D. Anderson
Chairman
604 687 0760
604 628 5001 (FAX)
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Datum: 23.12.2011 - 22:29 Uhr
Sprache: Deutsch
News-ID 99858
Anzahl Zeichen: 14148
contact information:
Town:
VANCOUVER, BRITISH COLUMBIA
Kategorie:
Mining & Metals
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