Cayden Resources to Raise up to CAD$10 Million Through a Brokered Private Placement
Cayden Resources Inc. (TSX.V: CYD) (�Cayden� or the �Company�) Resources Inc. has
entered into a letter of engagement with a syndicate led by Euro Pacific Canada
Inc. and including Fraser Mackenzie Ltd. (the agents), pursuant to which the
agents have agreed to place, on a best efforts basis, up to five million units
of the company at a price of $2 per unit. Each Unit consists of one common
share plus one half of one common share purchase warrant with each whole
purchase warrant exercisable into a common share at a price of $3.00 for a
period of 24 months from closing (the "Warrant"). In the event that
the Company's common shares trade at a closing price on the TSX Venture
Exchange of greater than $5.00 per share for a period of 20 consecutive trading
days at any time after four months after the Closing Date, the Company may
accelerate the expiry date of the Warrants by giving notice to the holders
thereof and in such case the Warrants will expire on the 30th day after the
date on which such notice is given by the Company.
The Agents will receive a cash commission of 6% of the
gross proceeds raised and share purchase warrants entitling the Agents to
purchase, at a price of $2.00 per share within 24 months after closing of the
Offering, common shares of the Company equal to 10% of the aggregate number of
Units sold pursuant to the Offering.
The Company intends to use the net proceeds of the
Offering to fund the advancement of the Company's Morelos Sur project in Mexico
and for general corporate purposes.
Closing of the Offering is anticipated to occur on or
before November 15, 2011 and is subject to certain conditions including, but
not limited to the receipt of applicable regulatory approvals including
approval of the TSX Venture Exchange.
Cayden has also completed its due diligence on the Quartz Mountain silver-gold
project in Nevada and has decided to proceed with the option agreement
announced May 19, 2011; the effective date of the completed agreement will be
We seek Safe Harbor.
On Behalf of the Board,
Ivan Bebek, President and CEO