Vancouver, British Columbia, May 15, 2009. Candente Resource Corp. (DNT:TSX and BVL) ("Candente" or the "Company")) announces financial results for the quarter ended March 31, 2009 ("Q1-2009"). All amounts in this release are in U.S. dollars unless otherwise stated.
The Company posted a net loss of $395,494 or $nil per share in Q1-2009, compared to a loss of $1,049,517 or $0.01 per share in the three months ended March 31, 2008 ("Q1-2008").
The sharp reduction in net loss between the comparative quarters follows the implementation of cost savings initiatives by management in response to the global economic crisis in the second half of 2008. Given the financial uncertainty caused by the global economic crisis and its effect on liquidity in capital markets, the Company curtailed exploration activities and reduced overhead expenses to preserve capital.
The Company's major general and administrative expenses in Q1-2009 were stock-based compensation of $89,994, salaries and management fees of $89,638 and foreign exchange loss of $78,206.
Mineral property expenditures were $183,677 in Q1-2009. At March 31, 2009, and since inception, the Company's mineral properties' expenditures now total $41,102,496.
At March 31, 2009, the Company had 81 million common shares outstanding plus 6.9 million stock options and 4.9 million share purchase warrants, for a fully-diluted total of 92.8 million common shares.
At March 31, 2009, the Company had working capital of $1,140,245 including cash and cash equivalents of $2,610,665.
The Company has initiated an arrangement which will see the formation of a new company, Candente Gold Corp. ("Candente Gold"), to hold and develop its gold-silver properties (see Candente news releases NR 258 on April 14, 2009 and NR 259 on May 8, 2009). Management believes a company focused solely on precious metals exploration will generate interest from investors and the creation of Candente Gold will enable financing for work on its gold-silver properties. Management is also very encouraged by the significant increase in copper price to date in 2009 and is planning to assess financing opportunities that would permit resumption of exploration and development activities on the Cañariaco copper project.
For a detailed analysis of the financial results presented above, refer to the March 31, 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.
For further information please contact
|Joanne C. Freeze, PGeo.||Sean Waller, P. Eng.|
|President & CEO||Vice-President Development|
|+ 1 (604) 689-1957||+ 1 (604) 689-1957|