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VANCOUVER, BRITISH
COLUMBIA--(Marketwire - Aug. 12, 2009) - Candente Resource Corp. (TSX:DNT)(BVLAC:DNT)(WKN:GW4) ("Candente" or
the "Company") announces financial results for the quarter
ended June 30, 2009 ("Q2-2009"). All amounts in this release
are in U.S. dollars unless otherwise stated.
The Company posted net earnings of $179,883 or $nil per share in
Q2-2009, compared to a net loss of $1,114,984 or $0.02 per share in the
three months ended June 30, 2008 ("Q2-2008"). Earnings posted
by the Company in Q2-2009 follow a foreign exchange gain of $450,014 in
the quarter, of both a realized and unrealized nature, due to
fluctuations of the Canadian dollar and the Peruvian nuevo sol with
respect to the U.S. dollar during the quarter, and are not indicative of
projected future results. On a year-to-date basis the Company posted a
loss of $215,611 to June 30, 2009, compared to a loss of $2,164,501 in
the six months ended June 30, 2008.
The sharp reduction in net loss between the comparative three and six
month periods follows variations in foreign exchange gains or losses,
lower stock-based compensation expense and reduced general and
administrative expenses due to the implementation of cost savings
initiatives by management in response to the global economic crisis and
the sharing of certain overhead costs with Candente Gold Corp. ("Candente
Gold") as of May 2009.
The Company's major general and administrative expenses in Q2-2009 were
salaries and management fees of $57,709, audit and accounting fees of
$46,552 and stock-based compensation of $46,129.
Mineral property expenditures were $572,568 in Q2-2009 and a reduction
in carrying value of $1,091,694 in connection with the transfer of the
El Oro property to Candente Gold. At June 30, 2009, and since inception,
the Company's mineral properties' expenditures now total $40,583,370.
At June 30, 2009, the Company had 81 million common shares outstanding
plus 6.8 million stock options and 4.4 million share purchase warrants,
for a fully-diluted total of 92.1 million common shares.
At June 30, 2009, the Company had cash and cash equivalents of
$1,624,682 and working capital of $618,573.
Candente Management is very pleased to see the continuation of the
strengthening in the price of copper and plans to resume studies on the
Canariaco Norte project. The initial work plan will focus on resumption
of metallurgical studies and a re-evaluation of the economics of the
Canariaco Norte project. Factors which are expected to benefit the
project economics include: 1) decreased mine and process equipment
capital costs; 2) reduced capital construction costs and shortening of
the project construction schedule; 3) lower concentrate transport costs
due to plans for a new port to be built at Eten, which is much closer
to the Canariaco project than the port identified in the Preliminary
Economic Assessment ("PEA") and, 4) new tax incentives in
Peru which may provide tax credits for qualifying infrastructure
development.
Management is also evaluating strategies for financing ongoing requirements
including the program described above which is estimated to cost less
than $400,000. Looking ahead, Management plans to resume work towards
completion of prefeasibility and definitive feasibility studies for the
Canariaco Norte project.
In addition, the Company plans to resume exploration of the Canariaco
Sur copper porphyry discovery announced last fall (see Candente news
release October 2, 2008) and the Quebrada Verde copper porphyry target.
Canariaco Sur and Quebrada Verde are located within 4 kilometres of the
Canariaco Norte deposit and the discovery of additional deposits would
have the potential to significantly enhance the overall Canariaco
project economics through use of common mine and process
infrastructure.
For a detailed analysis of the financial results presented above, refer
to the June 30, 2009 Unaudited Consolidated Financial Statements and
Management's Discussion and Analysis available on the Company's website
at www.candente.com and at www.sedar.com.
About Candente Resource Corp.
Candente is a diversified exploration and development company with
copper, gold, silver, and zinc projects in Peru and Mexico. 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.
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.
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