Candente Gold is scheduled to 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. and will distribute to its shareholders one common share of Candente Gold for every five common shares of Candente Resource held as of 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.
The Financing is comprised of units which consist 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 5th 2011) to purchase one additional Share at a price of $0.60 per Share.
Candente Gold will pay to certain agents assisting with the financing a cash commission equal to 6.5% of the gross proceeds from the sale of the units they each make 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 sell 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.
All Shares issued pursuant to the Financing will be subject to a four month hold period to May 5, 2010.
Insiders have purchased 5.8% of the units issued pursuant to the first tranche of the Financing.
The net proceeds of the Financing will be used to fund exploration and development activities on Candente Gold's El Oro property in Mexico, its portfolio of earlier stage gold-silver properties in Peru and for general corporate purposes.
At El Oro, 20 veins have been discovered to date and there is excellent potential to discover more veins. Many of the known veins have no surface expression due to a cover of younger volcanic rocks. Most of the past exploration and mining development has been conducted on only two of the veins. Historic mining operations produced eight million gold equivalent ounces from an average vertical extent of 150 to 250 metres within two veins and there is strong indication that the gold and silver mineralization continues at depth. The El Oro mineral systems are 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.
Gold and silver mineralization extends over significant lengths and widths within the veins and also occurs in irregular high-grade ("bonanza") zones, which pinch and swell both vertically and laterally.
Joanne Freeze, President and CEO comments "We believe the El Oro property has the potential to host several million ounces of gold and silver in both vertical and lateral extensions to known veins as well as possible undiscovered veins."
About Candente Resource Corp and Candente Gold Corp.
The Company's and Candente Gold's Management Teams and Boards 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 whereby 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:
Phone: + 1 (604) 689-1957
Joanne C. Freeze, P.Geo.
President & CEO
Sean Waller, P. Eng.