Under terms of the LOI, the Company will grant to Apolo, a 0.5% NSR on the Cañariaco Property for a purchase price of USD$500,000. The Cañariaco Property comprises the Cañariaco Norte and Cañariaco Sur deposits and the Quebrada Verde porphyry prospect. Candente received US$100,000 upon signing the LOI, and will receive the remainder of the funds in stages, upon completion of the definitive royalty agreement and legal registration of the royalty agreement in Peru. The funds will be used for general corporate purposes and activities at the Cañariaco project. The NSR will be secured by a mortgage on the property.
"Candente is very pleased to enter into this agreement with Entr̩e. We believe that Entr̩e's addition of the NSR to their significant copper and gold portfolio demonstrates that they consider Cañariaco to be an excellent project." commented Joanne Freeze, CEO of Candente.
In April 2011, the Company initiated a definitive Feasibility Study ("FS") of the Cañariaco Norte Project. In mid-2013, although well advanced and approximately 50% complete, the FS was put on hold due to the deterioration in investment climate for small cap mining exploration companies. The FS is being conducted by Amec Foster Wheeler and supported by Knight Piesold Consultants, both of Vancouver.
About Candente Copper
Candente Copper is a mineral exploration company engaged in the acquisition, exploration and development of mineral properties. The company is currently focused on its 100% owned Cañariaco Project, which includes the Feasibility stage Cañariaco Norte deposit as well as the Cañariaco Sur deposit and Quebrada Verde prospect, located within the western Cordillera of the Peruvian Andes in the Department of Lambayeque in Northern Peru.
At Cañariaco Norte 7.5 billion pounds of copper have been delineated in a Measured and Indicated* resource of 752.4 million tonnes grading 0.49% copper equivalent**. An Inferred Resource of 157.7 million tonnes at 0.44% copper equivalent has also been delineated in the Cañariaco Norte deposit.
A highly successful Phase I drilling program was carried out in 2013 on the Cañariaco Sur deposit. Future drilling is warranted for additional step-out holes at Cañariaco Sur as well as first phase drilling on the Quebrada Verde target.
In addition, Candente Copper holds several other base metal exploration projects in Peru. One of these, the Arikepay copper-gold porphyry, is being explored under a joint venture agreement with Zahena S.A.C. who is funding up to USD$5 million (M) in exploration expenditures and USD$4M in payments within 4 years.
Sean Waller, P.Eng., President and Joanne C. Freeze, P.Geo., CEO, are the Qualified Persons as defined by National Instrument 43-101 for the projects discussed above. They have reviewed and approved the contents of this release. *The 'Measured and Indicated Resource' listed above consists of Measured Resources of 338.1Mt at 0.48% Cu , 0.08 g/t Au, and 2.0/t Ag (0.52% Cu Eq.), plus Indicated Resources of 414.3Mt at 0.43% Cu, 0.06 g/t Au, and 1.8 g/t Ag (o.46% Cu Eq.). All resources quoted in this release are based on a 0.30% copper cut-off grade and 229 drill holes completed to the end of 2008. **Copper equivalent grade including gold and silver, metal recoveries (copper 90%, gold 55%; silver 50%) and smelter returns (copper 96.5%: gold 93%; silver 90%) applied. Copper grade equivalent calculation: Cu Eq% =(Cu % + ((Au grade x Au price x Au recovery x Au smelter return%)+(Ag grade x Ag price x Ag recovery x Ag smelter return%))/(22.0462 x Cu price x 31.0135 g/t x Cu recovery x Cu smelter return%). The metal prices used are: copper US$2.50/lb, gold US$1,035/oz and silver US$17.25/oz. Please refer to the pre-feasibility study progress report for the Cañariaco Norte Copper Project titled "Cañariaco Project, Lambayeque Department, Peru, NI 43- 101 Technical Report on Pre-feasibility Study Progress Report" for further information.
About Entr̩e Gold
Entr̩e Gold Inc. is a Canadian based mineral exploration company balancing opportunity and risk with key assets in Nevada and Mongolia. Entr̩e has been advancing its Ann Mason Project in one of the world's most favourable mining jurisdictions, Nevada, and recently completed a pre-feasibility level drill program. The Ann Mason Project hosts the Ann Mason copper-molybdenum deposit as well as the Blue Hill copper deposit within the rejuvenated Yerington copper camp.
Additionally, as a joint venture partner with a carried interest on a portion of the Oyu Tolgoi mining project in Mongolia, Entr̩e has a unique opportunity to participate in one of the world's largest copper-gold projects managed by one of the premier mining companies - Rio Tinto. Oyu Tolgoi, with its series of deposits containing copper, gold and molybdenum, has been under exploration and development since the late 1990s.
Sandstorm Gold, Rio Tinto and Turquoise Hill Resources are major shareholders of Entr̩e, holding approximately 12%, 11% and 9% of issued and outstanding shares, respectively.
On behalf of the Board of Candente Copper Corp.
"Joanne C. Freeze" P.Geo.
For further information please contact:
Manager, Investor Relations
mobile: +1 (604) 306-8477
local: + 1 (604) 689-1957 ext 3
Investor Relations, Peru
tel.: (511) 715-2001 ext 107