Vancouver, British Columbia, March 9, 2010. Candente Copper Corp. (DNT-TSX) is pleased to announce the closing of its previously announced private placement of 12,938,011 Units ("Units") and 4,856,187 Special Warrants ("Special Warrants") for total proceeds of C$6,227,969.
"We are very pleased to have funding in place to resume significant exploration and development work on our copper projects in Peru." said Sean Waller, P. Eng., Candente Copper's President. "Since the release of our positive Preliminary Economic Assessment report in 2008 we have identified a number of factors which we believe will improve the economics of the Cañariaco Norte copper project. 2010 will be a very exciting year for Candente Copper."
The Units and Special Warrants were sold for a price of C$0.35 each. Each Unit consists of one common share in the capital of the company and one half of one share purchase warrant ("Warrant"). Each whole Warrant will be exercisable for a period of 36 months from the date of closing to purchase one share at a price of C$0.50 per share. Each Special Warrant will be exercisable for one Unit at no additional cost to the holder providing shareholder approval for the exercise of the Special Warrants is obtained at the company's annual general meeting, scheduled for May 13, 2010, or at any adjournment of such meeting.
The C$1,699,665 in gross proceeds from the sale of the Special Warrants has been deposited into escrow to be held in trust pending shareholder approval. On the first business day following receipt of shareholder approval, each Special Warrant will automatically be exercised to acquire one Unit. If shareholder approval is not obtained, all of the funds held in escrow will be returned to the subscribers. The Special Warrants, the shares and Warrants comprising the Units, and the shares issuable upon exercise of the Warrants, are all subject to the same four-month hold period (ending July 10, 2010) applicable under Canadian securities law.
In connection with this offering, Candente Copper has paid a 6% cash commission and issued 649,895 broker/finder warrants ("Broker Warrants") and 239,224 special broker/finder warrants ("Special Broker Warrants") on all of the brokered portions of the offering and on part of the non-brokered portion of the offering. Each Broker Warrant is exercisable for a period of 36 months from closing to purchase one share at a price of C$0.45 per share. Each of the Special Broker Warrants will automatically be exercised to acquire one Broker Warrant upon receipt of shareholder approval, and will expire if shareholder approval is not obtained.
The net proceeds of this financing will be used for exploration and development of Candente Copper's Peruvian copper projects and for general corporate purposes.
On behalf of the Board of Candente Copper Corp.
"Sean Waller", P.Eng.
President & Director
This news release may contain forward-looking statements including but not limited to comments regarding the approvals of regulators or shareholders, the timing of the Company's annual general and special meeting, 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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CAUTIONARY NOTE TO U.S. INVESTORS