The Company posted a net loss of $5,031,651 or $0.07 per share in 2008, compared to a loss of $3,423,928 or $0.05 per share in 2007. The Company's major general and administrative expenses in 2008 were stock-based compensation of $1,889,692, foreign exchange expense of $1,123,133 and management and office salaries and benefits of $839,777.
Mineral property expenditures were $15,557,857 in 2008, including $13,274,475 on the Cañariaco property. At December 31, 2008, the Company's mineral properties expenditures totalled $40,918,819.
The Company completed a private placement of 7,940,000 units at a price of Cdn$1.50 per unit for gross proceeds of Cdn$11,910,000 ($11,755,996). Each unit consisted of one common share and a one half share purchase warrant, each full warrant exercisable at a price of Cdn$2.00 to purchase one additional common share to June 26, 2010. Agents' warrants to purchase 394,449 common shares of the Company at a price of Cdn$1.75 per share, having a fair value of $162,757, were issued as part of the private placement. Total share issue costs were $860,007, resulting in net proceeds of $10,895,989. The share purchase warrants were assigned a fair value of $1,420,195.
At December 31, 2008, the Company had outstanding 81 million common shares, 7.9 million stock options and 4.9 million share purchase warrants, for a fully-diluted amount of 93.8 million common shares.
At December 31, 2008, the Company had working capital of $1,556,633 including cash and cash equivalents of $3,448,322.
Given the financial uncertainty caused by the global economic crisis and the ongoing effect on both commodity prices and liquidity in capital markets, the Company has curtailed exploration activities to preserve capital. The Company has also significantly reduced staff in Peru and in Canada and taken steps to minimize operating costs. Despite the current economic challenges, the Company is continuing to actively assess options to facilitate resumption of exploration and development activities.
For a detailed analysis of the above financial results, refer to the 2008 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.
CAUTIONARY NOTE TO U.S. INVESTORS
For further information please contact:
Joanne C. Freeze
President & CEO
+ 1 (604) 689-1957