VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 13, 2012) - - CADAN RESOURCES CORPORATION (TSX VENTURE:CXD)(FRANKFURT:AOMZ25) -
NOT FOR DISTRIBUTION IN THE UNITED STATES
CADAN RESOURCES CORPORATION ("Cadan" or the "Company") announces that it will be proceeding with the second tranche of the previously announced private placement financing for a total of up to 50,000,000 units (the "Units") at a price of $0.15 per Unit for gross proceeds of up to $7.5million. Each Unit consists of one common share in the capital of the Company and one share purchase warrant, each warrant is exercisable to acquire an additional common share for a period of 2 years from the closing date at a price of $0.20 for the first year and at a price of $.25 for the second year.
The Company has sold 9,558,834 units for total gross proceeds of $1,433,825 pursuant to the first tranche. The Company may pay finder's fees of up to 6% in cash, units or warrants upon the final closing of the private placement. Net proceeds from the private placement will be applied towards advancement of the Company's Philippine mineral properties and general working capital.
The Company also announces that it has entered into a supplementary mineral property and royalty agreement with G. Lluch & Sons Inc. ("G. Lluch") and Philco Mining Corporation ("Philco"). G. Lluch is a private Philippines company that granted certain mineral property rights to Philco. The supplementary agreement amends and updates various property access, exploration and mining rights, and royalty agreements relating to the Batoto-Tarale mineral project originally entered into between G. Lluch and Philco. Pursuant to the supplementary agreement, Cadan agreed to issue 125,000 common shares to G. Lluch. Philco agreed to pay to G. Lluch USD$50,000 and 600,000 Philippine pesos annually until commercial production. G. Lluch will also receive a production royalty of CAD$2.00 per ounce of gold. The production royalty may be purchased by Philco prior to the commencement of commercial production in consideration for CAD$2,000,000.
The above transactions are subject to approval by the TSX Venture Exchange.
For further information visit our website at www.cadanresources.com or email us at email@example.com.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.