Northern Miner / BN Americas

DAILY NEWS 12/18/2009 6:27:00 PM
Cardero gets the money


Vancouver - For Cardero Resources (CDU-T) getting a final US$88 millionpayment for its Pampa de Pongo iron ore project in Peru fromChinese-buyer Nanjinzhao has been an uphill battle.
CNanjinzhao was a tough customer. It haggled hard over the ultimateprice of Pampa de Pongo, eventually getting it for half what itoriginally said it would pay; it blamed payment delays on the Chinesecentral government; and, most recently, it failed to provide a promisedbank guarantee for US$88 million, the final tranche of Pampa de Pongo'sUS$100 million price tag.
For outsiders holding faith in the depth of Nanjinzhao's pocket was not easy.

But, while at times Cardero management sounded a bit weary, theynonetheless stuck to their guns throughout protracted negotiations,which began just over a year ago, and calmly maintained the money wouldcome.
So no doubt celebrations were raucous the evening of Dec. 17, 2009, theday Nanjinzhao finally let Cardero know the money was in the bank.Cardero reports Nanjinzhao paid it US$58 million and that a final US$30million payment is forthcoming Dec. 31, 2009.
Market response was upbeat. Cardero's shareprice gained about 15% or19¢ to $1.49 on news of the final sale. Cardero, once the full paymentis in the bank, will have slightly more cash than its marketcapitalization of about $87 million.
As Cardero notes in its press release outlining the Pampa de Pongopayment, the cash pool will allow it to advance its other properties inPeru, Mexico and the U.S. Among several properties in Mexico, Cardero'scurrent portfolio includes the Pampa El Toro iron sands project inPeru, and the Longnose titanium project in Minnesota.
Cardero also hinted at possible acquisition of "significantly more advanced projects".
What those might be has yet to be announced. But one thing is certain.If Cardero ever decides to deal with the Chinese again, it will be anold dog on that hard road.
© 2009 The Northern Miner. All Rights Reserved.

Cardero, Hongda to wrap up Pampa de Pongo sale by year-end
Friday, December 18, 2009
Vancouver's Cardero Resource (TSX: CDU) and Zibo Hongda Mining, asubsidiary of Chinese group Nanjinzhao, plan to wrap up the sale of thePampa de Pongo iron ore deposit in Peru's Ica region by year-end, theformer reported in a release.
Due to the fact that Nanjinzhao has not yet finalized financingarrangements and is making the final payment from its own funds, thecompany has requested, and Cardero has agreed, that the final paymentof US$88mn would be divided into three installments.
Cardero has already received US$58mn of the total and the remaininginstallment of US$30mn is scheduled to be paid on December 31, therelease said.
With the completion of the sale, Cardero will have the fundingnecessary to continue exploring existing projects and also to evaluatepotential acquisitions of more advanced projects.
In July Cardero unveiled an initial resource estimate for the Pampa ElToro Iron Sands property in Ica, outlining indicated resources of 242Mtgrading 6.66% iron oxide, 0.72% titanium dioxide and 172ppm vanadium.
Inferred resources amount to 630Mt grading 6.48% iron oxide, 0.70%titanium dioxide and 166ppm vanadium. In terms of volume, the indicatedresource amounts to 134Mm3 of ore and the inferred resource 348Mm3,Cardero said in a prior statement.
The company has additional grassroots exploration assets in Peru, as well as projects in Argentina and Mexico.

Business News Americas