VANCOUVER, BRITISH COLUMBIA--(Marketwire - May
8, 2009) - Further to its press release dated April 14, 2009, Candente
Resource Corp. (TSX:DNT)(BVLAC:DNT)(WKN:GW4) ("Candente") is
pleased to report that Candente and Canaco Resources Inc. (TSX VENTURE:CAN)
("Canaco") have created a new company, Candente Gold Corp.
("Candente Gold"), to focus on exploration and development of
precious metals projects in Latin America. Candente and Canaco have
completed the transfer to Candente Gold of their respective 50% interests
in Minera CCM S.A. de C.V., the Mexican company that holds the option
on the El Oro gold-silver property ("El Oro") in Mexico. El
Oro is held under option from Luismin, S.A. de C.V
("Luismin"), a subsidiary of Goldcorp Inc.
As consideration for the transfer of the El Oro interests, Candente
Gold has issued 5 million common shares and a promissory note to each
of Candente and Canaco. Each promissory note has a principal amount of
$1.3 million, approximately equal to total expenditures made by each of
Candente and Canaco on El Oro to date, and is payable in cash or
convertible into common shares of Candente Gold.
Candente also plans to transfer its Peruvian gold-silver properties to
Candente Gold under a plan of arrangement. Proposed terms of the arrangement
are being evaluated by a Special Committee made up of Independent
directors of Candente, as well as by Ross Glanville and Associates Ltd.
and Bruce McKnight of Minerals Advisor Services, who have been retained
to provide Candente with a fairness opinion.
The plan of arrangement also provides that Candente Gold will seek to
raise funds in accordance with market conditions and list its common
shares on the TSX and the BVL ("Bolsa de Valores de Lima")
stock exchanges. The plan of arrangement is subject to shareholder and
Candente Gold will develop new targeting concepts for the El Oro
District based on data previously generated by the Candente-Canaco
Joint Venture and others, through geological studies, geophysical
surveys, and mapping, combined with systematic review of historic mine
data. Primary objectives include: 1) defining drill targets for
discovery of new high grade gold-silver ore shoots in both previously
unrecognized structures as well as in known vein systems below and
along strike from the historic workings; 2) assessment of historical
resources reported by Luismin and others to identify zones with
near-term production potential, 3) test drill targets in the
"Oriente Zone" where new gold-silver veins may exist under post-mineral
cover. As part of the program Candente Gold intends to rehabilitate
underground access in the San Rafael mine to enable assessment and
sampling within the old workings and to provide access to new drill
stations for deep drilling on the San Rafael vein.
Candente Resource Corp. will change its name to Candente Copper Corp.
and retain the Canariaco project and several other of its predominantly
copper and/or other base metal exploration properties in Peru.
Sean Waller, P.Eng., V.P. Development, and Joanne C. Freeze, P.Geo.,
President & CEO, of Candente, are the Qualified Persons as defined
by National Instrument 43-101 for the projects discussed above, and
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.
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
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.
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.