VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 7, 2011) - Cascadero Copper Corporation (News - Market indicators) ("Cascadero") signed an Option and Joint Venture Exploration Agreement (the "Option Agreement") with Gold Fields Toodoggone Exploration Corporation ("Gold Fields"), a wholly owned subsidiary of Gold Fields Netherlands Services BV ("Gold Fields Netherlands") and a member of the Gold Fields Limited group of companies. Pursuant to the Option Agreement Gold Fields can earn a 51% interest in Cascadero's Toodoggone Project in British Columbia, Canada, by spending at least C$5 million over an initial three year option period. Gold Fields can earn a further 24% interest by completing a feasibility study or sole funding a further C$15 million in expenditures.
During the initial option period Gold Fields is required to subscribe for units in Cascadero at agreed prices. At the time of signing the Option Agreement in March 2009, Gold Fields Netherlands subscribed for 500,000 units at $0.10 per unit. If Gold Fields' continues to explore the Toodoggone Project, Gold Fields Netherlands will make three further $100,000 investments in Cascadero at regular intervals over the initial three year option period.
As Gold Fields is continuing to explore the Toodoggone Project, Gold Fields Netherlands is now making its second investment in Cascadero by subscribing for 400,000 units at $0.25 each. Each unit is comprised of one common share and one warrant, whereby the warrant entitles the holder to purchase an additional common share at $0.25 each for a period of one-year from closing. The units are subject to a four-month holding period. There is a residual finder fee payable.
Completion of the financing is subject to regulatory approval, including acceptance by the TSX Venture Exchange. Subject to successful closing, Cascadero will have 105.9 million shares issued. Cascadero intends to use the proceeds for general working capital purposes.
Cascadero Copper is focused on copper-gold porphyry prospects in British Columbia and Argentina as well as gold prospects in Ontario, Canada.
Bill McWilliam, President
Neither the TSX Venture Exchange nor its Regulation Service Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
