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June 7, 2007
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Private Placement Closed and Amerigo Acquires Position in Candente
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VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - June 7, 2007) -
NOT FOR DISTRIBUTION TO US NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES
Candente Resource Corp. (TSX:DNT)(BVL:DNT)(WKN:GW4) ("Candente") is pleased to announce that it has closed the previously reported brokered private placement for total gross proceeds of Cdn$17,120,831. Amerigo Resources Ltd. (TSX:ARG) ("Amerigo") subscribed for a significant portion of the private placement which, when combined with common shares of Candente already held, results in Amerigo holding approximately 9.6% of the outstanding common shares of Candente on an undiluted basis. The private placement was placed by a syndicate led by Westwind Partners Inc. and including Raymond James Ltd. in respect to investors outside of South America and by Credibolsa S.A.B. S.A. in respect of investors in South America (the "Agents").
Joanne Freeze, President and CEO of Candente, comments that "the company is extremely pleased to have Amerigo as a strategic investor. Steven Dean, Chairman, and Dr. Klaus Zeitler, President of Amerigo, both have extensive track records in successful mine financing, development and management."
Amerigo produces copper and molybdenum concentrates from tailings from the world's largest underground copper mine, Codelco's El Teniente mine, a copper producer for the past 100 years with remaining ore reserves lasting many more decades. In 2006, total earnings reached US$39.3 million, up 119% from 2005, and earnings per share were US42 cents. Annualized production is projected to increase to approximately 60 million pounds of copper and 1 million pounds of molybdenum by the end of 2007.
In addition, Candente is very pleased to welcome Dr. Zeitler to the board of directors. Since receiving his Ph.D. in economic planning at Karlsruhe University in 1966, Dr. Zeitler has financed, built and managed both base metal and gold mines worldwide (Europe, Africa, North America, South America, Pacific) with a total investment value of US$4 billion. He led Inmet Mining, as President and CEO, in its successful bid for the Antamina project in Peru in 1996 and later represented, as a senior Vice President, Teck Cominco Ltd. on the board of the joint venture committee which financed and developed Antamina (2000), now one of the world's largest copper and zinc mines. He was also a director of Cominco when it was developing the Quebrada Blanca mine in Chile, as well as owning and operating the Cajamarquilla zinc smelter in Peru.
Peter de Visser, C.A., CFO and co-founder of Candente, has agreed to step down as a director to increase the board's independence and make room for Dr. Zeitler. He will remain as CFO and is very much appreciated for all of his years of service and dedication to Candente and its shareholders.
Candente issued a total of 13,169,870 common shares at a price of Cdn$1.30 per share in the private placement. The shares are subject to a four-month hold period until October 8th, 2007. Candente has paid the Agents a fee of 6% in cash and issued broker warrants entitling them to purchase up to a total of 780,592 common shares, which equals 6% of the number of common shares sold by the Agents. The broker warrants are exercisable until June 7, 2009 at a price of Cdn$1.37 per share. The net proceeds of the private placement will be used for funding exploration and development activities on the Company's mineral properties and for general corporate purposes.
The Company is now well funded to complete all drilling and feasibility, metallurgical and environmental (EIA) studies underway at Canariaco as estimated, and expected to be completed by early 2008. Sufficient funding is also in place for exploration commitments on the El Oro gold-silver property in Mexico and for exploration programs on Candente's other properties in Peru.
Candente is a diversified exploration company with copper, gold, silver, and zinc projects in Peru and Mexico. Canariaco is an advanced exploration stage copper deposit. Candente subscribes to principles, which ensure that its exploration and development activities are beneficial to the local communities.
NR 216
This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to U.S. persons unless registered under the U.S. Securities Act and the applicable state securities laws or an exemption from such registration is available.
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.
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