Closing Financing of $9 Million and Listing of Candente Gold Corp.admin
Candente Resource Corp. and Candente Gold Corp. has 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.