Cadillac Ventures Inc.
TSX VENTURE : CDC

Cadillac Ventures Inc.

January 26, 2010 09:00 ET

Cadillac Announces $2.0 Million Financing

TORONTO, ONTARIO--(Marketwire - Jan. 26, 2010) -

THIS NEWS RELEASE IS INTENDED FOR DISTRIBUTION IN CANADA ONLY AND IS NOT AUTHORIZED FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Cadillac Ventures Inc. (TSX VENTURE:CDC) ("Cadillac") announces that it has entered into an agreement with Trafigura Beheer, B.V. ("Trafigura"), an existing shareholder of the Company, for a non-brokered private placement financing pursuant to which it will issue 5,000,000 units to Trafigura at $0.40 per unit for gross proceeds of $2.0 million. Each unit will consist of one common share and one-half of one common share purchase warrant. Each whole warrant will be exercisable, for 24 months, for one common share at $0.50 per share.

The proceeds from the financing will be used for exploration expenditures and general working capital purposes. The securities issued under the financing will be subject to restrictions on resale for four months.

Pursuant to Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the financing constitutes a "related party transaction" for Cadillac as Trafigura currently holds 10,760,806 shares of Cadillac representing approximately 18.5% of Cadillac's issued and outstanding common shares. Cadillac is exempt from obtaining both a formal valuation and minority shareholder approval in connection with the financing because neither the fair market value of the common shares and warrants to be issued under the financing, nor the consideration for such securities, exceeds 25 per cent of the Company's market capitalization as calculated in accordance with MI 61-101.

The financing is expected to close in early February, 2010. The expected closing date is less than 21 days from the date of this news release and is necessary in the circumstances given the parties' desire to close the financing without delay.

Cadillac also announces that David Poynton has stepped down as an officer of Cadillac in order to focus on his duties as an officer of Iberian Minerals Corp. Cadillac thanks Mr. Poynton for his contributions during his tenure as an officer of Cadillac.

About Cadillac

Cadillac is a development-focused exploration Company which has the past-producing Thierry Property near Pickle Lake in Northern Ontario, two Canadian exploration projects, located in regions that have been historically active, and exploration projects in Spain.

The New Alger project located outside of Cadillac, Quebec is a wholly-owned, previously producing gold mine, where the Company has entered into a joint venture agreement with Renforth Resources Inc. for a three year $2.5 million exploration program. The Burnt Hill Project is 51% owned tungsten tin project located outside of Fredericton, New Brunswick. In Spain, the Company is joint venture partner with Minas de Aguas Tenidas, S.A.U. regarding the exploration of a number of high potential properties surrounding the Aguas Tenidas Mine. 

For more information regarding Cadillac, please visit our website at www.cadillacventures.com.

Forward Looking Statements

This news release may contain certain forward-looking statements under applicable securities laws. All statements, other than statements of historical fact, are forward looking. Forward-looking statements are frequently identified by such words as 'may', 'will', 'plan', 'expect', 'believe', 'anticipate', 'estimate', 'intend' and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the risks of obtaining necessary licences and permits and the availability of financing, as described in more detail in the Company's securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned against placing undue reliance thereon. Cadillac assumes no obligation to revise or update these forward-looking statements except as required by law. All dollar amounts are in Canadian dollars unless otherwise noted.

Neither 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.

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