The Financing will be comprised of units at a price of $0.40 per unit, each unit consisting 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 to purchase one additional Share at a price of $0.60 per Share. The Financing will be carried out on a best efforts basis to raise proceeds of up to $10 million with a minimum target of $5 million.
Agents assisting with the financing will receive 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.
It is anticipated that insiders will purchase up to a maximum of 10% of the units issued pursuant to the Financing.
Pursuant to Toronto Stock Exchange Policies the Financing requires the approval of a simple majority of the Company's shareholders as more particularly disclosed in the Company's Information Circular dated June 5, 2009. Completion of the Financing is not expected to create a new insider in Candente Gold or have a material effect on control of Candente Gold.
The net proceeds of the Financing will be used to fund exploration and development activities on Candente Gold's precious metals properties in Mexico and Peru and for general corporate purposes.
About Candente Resource Corp and Candente Gold Corp.
The Company's and Candente Gold'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 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.
For further information please contact:
Joanne C. Freeze, PGeo.
President & CEO
Sean Waller, P. Eng.
Phone: + 1 (604) 689-1957