Candente Gold's first focus will be the El Oro property, which has very significant past gold and silver production (20 million ounces gold equivalent), a substantial historic (non NI 43-101 compliant) gold and silver resource and excellent exploration potential. (For details see http://www.candente.com/i/pdf/El_Oro_Mexico_Summary.pdf).
Candente Gold's second focus will be the earlier stage Peruvian properties where exploration by Candente has identified gold and silver mineralization and drill targets in geological settings similar to some of Peru's world class mines.
(See Candente Gold Properties Powerpoint presentation http://www.candente.com/i/pdf/GoldPropertiesApril2009.pdf).
Candente Gold will issue to each of Candente and Canaco, 5 million common shares and a promissory note for future reimbursement of their respective expenditures to date relating to the El Oro property (Cdn$1.3 million each) to be received in cash or shares. El Oro is under option from Luismin (now controlled by Goldcorp) by Minera CCM S.A. de C.V., which is owned equally (50% each) by Candente and Canaco and is being sold to Candente Gold.
For the Peruvian gold-silver properties, Candente will receive 10 million shares in Candente Gold upon transfer and an additional 10 million shares once a minimum of US$5 million has been spent cumulatively by Candente Gold on these properties.
Candente Gold will seek to list its common shares on either the TSX or the TSX.V and the BVL ("Bolsa de Valores de Lima") stock exchanges through a re-organization and will raise funds in accordance with market conditions. These transactions may be subject to shareholder and regulatory approvals.
Candente Resource Corp. will change its name to Candente Copper Corp. ("Candente Copper"). Candente Copper Corp. will retain the Cañariaco project and several other of its predominantly copper and/or other base metal exploration properties in Peru.
Candente Copper intends to initially retain a position (10 to 15%) in Candente Gold and distribute the remaining common shares it receives of Candente Gold to its current shareholders on a pro-rata basis.
Sean Waller, P.Eng., VP Development and Joanne C. Freeze, P.Geo., President & CEO are the Qualified Persons as defined by National Instrument 43-101 for the projects discussed above and they have reviewed and approved the contents of this release.
Complete results, maps, cross-sections and all reports on the El Oro property and the Peruvian gold-silver properties can be viewed at: http://www.candente.com.
About Candente
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.
For further information please contact Joanne C. Freeze and/or Walter Spagnuolo at (604) 689-1957 or 1 (877) 689-1964 (toll free); or communications@candente.com. Visit our website at www.candente.com
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.
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