Peru - Argentina - Mexico - Minnesota
Advancing World Class Iron Assets
Message: Announces that Nanjinzhao Makes Early USD 2 Million Payment
| February 11, 2009 |
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Cardero Resource Corp Announces that Nanjinzhao Makes Early USD 2 Million Payment
Second Payment of USD 10 Million on Schedule |
| VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 11, 2009) - Cardero Resource Corp. ("Cardero" or the "Company") - (TSX:CDU)(NYSE Alternext US:CDY)(FRANKFURT:CR5) is pleased to provide an update on the sale of Pampa de Pongo iron ore deposit to Nanjinzhao for USD 200 million. Nanjinzhao will commence engineering assessment work immediately and have made an early payment of USD 2 million in consideration of Cardero's cooperation. This work will allow the Nanjinzhao's permitting application to be submitted more quickly. The due dates for the remaining payments of USD 10 million and USD 188 million remain unchanged. Pampa de Pongo Sale Agreement Following signing of the USD 200 million purchase agreement among Nanjinzhao Group Co. Ltd., the Company and Cardero Hierro Peru S.A.C. on October 24, 2008 (News Release NR08-26), Rio Tinto Mining and Exploration S.A.C. had the right, for 45 days, to elect to acquire Pampa de Pongo on the same terms as agreed by Nanjinzhao. On December 17, 2008, Rio Tinto gave notice that it would not be exercising such right. Accordingly, on December 17, 2008 the Company advised Nanjinzhao of Rio Tinto's election. As a consequence, the three-month period for payment by Nanjinzhao of the initial USD 10 million deposit and the nine-month period for payment of the balance of USD 190 million commenced to run on that date. The due dates for these payments are therefore March 17, 2009 (USD 10 million) and September 17, 2009 (USD 190 million). On receipt of the initial USD 10 million deposit, Cardero Hierro Peru S.A.C. will transfer title to the Pampa de Pongo property to Nanjinzhao's Peruvian subsidiary (subject to payment of the USD 190 million balance of the purchase price). In order to fast-track development of the project, Nanjinzhao has requested, and Cardero has agreed, to the immediate commencement of engineering drilling on the property under the existing drilling permit, which will facilitate the timely collection of engineering and geotechnical data essential for the development permitting process. In consideration of this concession, Nanjinzhao has paid Cardero the sum of USD 2 million dollars. This payment is considered to be an advance on the final USD 190 million payment, which has now therefore been adjusted to USD 188 million. The USD 10 million deposit remains unchanged and is to be paid on 17 March 2009 as agreed. Payment of the USD 2 million advance does not trigger the "break fee" provisions of the October 24, 2008 purchase agreement. About Cardero Resource Corp. Cardero's focus through 2009 is to realise the considerable value it believes is locked in the Company's significant iron ore assets in the Marcona District of southern Peru, the Baja district of Mexico and in Minnesota, USA while continuing to progress its base and precious metal exploration projects in Argentina and Mexico. The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE Alternext US (symbol CDY) and the Frankfurt Stock Exchange (symbol CR5). For further details on the Company readers are referred to the Company's web site (www.cardero.com), Canadian regulatory filings on SEDAR at www.sedar.com and United States regulatory filings on EDGAR at www.sec.gov. |
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