| April 14, 2009 |
| Candente and Canaco to Form a New Gold-Silver Company |
VANCOUVER, BRITISH COLUMBIA--(Marketwire - April 14, 2009) - Candente Resource Corp. (TSX:DNT)(BVL:DNT)(WKN:GW4) ("Candente") and Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco") are very pleased to report that they have agreed to create a new company, Candente Gold Corp. ("Candente Gold"), to focus on exploration and development of precious metals projects in Latin America. Each company will transfer to Candente Gold its respective 50% interest in the El Oro gold-silver property in Mexico and in addition, Candente will also transfer to Candente Gold its Peruvian gold-silver properties.
Candente Gold's first focus will be the El Oro property, which has very significant past gold and silver production (20 million ounces gold equivalent), a substantial historic (non NI 43-101 compliant) gold and silver resource and excellent exploration potential. (for details see http://www.candente.com/i/pdf/El_Oro... ).
Candente Gold's second focus will be the earlier stage Peruvian properties where exploration by Candente has identified gold and silver mineralization and drill targets in geological settings similar to some of Peru's world class mines. (See Candente Gold Properties Powerpoint presentation http://www.candente.com/i/pdf/GoldPr... ).
Candente Gold will issue to each of Candente and Canaco, 5 million common shares and a promissory note for future reimbursement of their respective expenditures to date relating to the El Oro property (Cdn$1.3 million each) to be received in cash or shares. El Oro is under option from Luismin (now controlled by Goldcorp) by Minera CCM S.A. de C.V., which is owned equally (50% each) by Candente and Canaco and is being sold to Candente Gold.
For the Peruvian gold-silver properties, Candente will receive 10 million shares in Candente Gold upon transfer and an additional 10 million shares once a minimum of US$5 million has been spent cumulatively by Candente Gold on these properties.
Candente Gold will seek to list its common shares on either the TSX or the TSX.V and the BVL (Bolsa Valores Lima) stock exchanges through a re-organization and will raise funds in accordance with market conditions. These transactions may be subject to shareholder and regulatory approvals.
Candente Resource Corp. will change its name to Candente Copper Corp. ("Candente Copper"). Candente Copper Corp. will retain the Canariaco project and several other of its predominantly copper and/or other base metal exploration properties in Peru.
Candente Copper intends to initially retain a position (10 to 15%) in Candente Gold and distribute the remaining common shares it receives of Candente Gold to its current shareholders on a pro-rata basis.
Sean Waller, P.Eng., VP Development and Joanne C. Freeze, P.Geo., President & CEO are the Qualified Persons as defined by National Instrument 43-101 for the projects discussed above and they have reviewed and approved the contents of this release.
Complete results, maps, cross-sections and all reports on the El Oro property and the Peruvian gold-silver properties can be viewed at: http://www.candente.com
About Candente
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. |
|
