Candente Resource Corp.
TSX : DNT
BVLAC : DNT

Candente Resource Corp.
Canaco Resources Inc.
TSX VENTURE : CAN

Canaco Resources Inc.

May 08, 2009 04:00 ET

Candente and Canaco Transfer El Oro to Candente Gold Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 8, 2009) - Further to its press release dated April 14, 2009, Candente Resource Corp. (TSX:DNT)(BVLAC:DNT)(WKN:GW4) ("Candente") is pleased to report that Candente and Canaco Resources Inc. (TSX VENTURE:CAN) ("Canaco") have created a new company, Candente Gold Corp. ("Candente Gold"), to focus on exploration and development of precious metals projects in Latin America. Candente and Canaco have completed the transfer to Candente Gold of their respective 50% interests in Minera CCM S.A. de C.V., the Mexican company that holds the option on the El Oro gold-silver property ("El Oro") in Mexico. El Oro is held under option from Luismin, S.A. de C.V ("Luismin"), a subsidiary of Goldcorp Inc.

As consideration for the transfer of the El Oro interests, Candente Gold has issued 5 million common shares and a promissory note to each of Candente and Canaco. Each promissory note has a principal amount of $1.3 million, approximately equal to total expenditures made by each of Candente and Canaco on El Oro to date, and is payable in cash or convertible into common shares of Candente Gold.

Candente also plans to transfer its Peruvian gold-silver properties to Candente Gold under a plan of arrangement. Proposed terms of the arrangement are being evaluated by a Special Committee made up of Independent directors of Candente, as well as by Ross Glanville and Associates Ltd. and Bruce McKnight of Minerals Advisor Services, who have been retained to provide Candente with a fairness opinion.

The plan of arrangement also provides that Candente Gold will seek to raise funds in accordance with market conditions and list its common shares on the TSX and the BVL ("Bolsa de Valores de Lima") stock exchanges. The plan of arrangement is subject to shareholder and regulatory approvals.

Candente Gold will develop new targeting concepts for the El Oro District based on data previously generated by the Candente-Canaco Joint Venture and others, through geological studies, geophysical surveys, and mapping, combined with systematic review of historic mine data. Primary objectives include: 1) defining drill targets for discovery of new high grade gold-silver ore shoots in both previously unrecognized structures as well as in known vein systems below and along strike from the historic workings; 2) assessment of historical resources reported by Luismin and others to identify zones with near-term production potential, 3) test drill targets in the "Oriente Zone" where new gold-silver veins may exist under post-mineral cover. As part of the program Candente Gold intends to rehabilitate underground access in the San Rafael mine to enable assessment and sampling within the old workings and to provide access to new drill stations for deep drilling on the San Rafael vein.

Candente Resource Corp. will change its name to Candente Copper Corp. and retain the Canariaco project and several other of its predominantly copper and/or other base metal exploration properties in Peru.

Sean Waller, P.Eng., V.P. Development, and Joanne C. Freeze, P.Geo., President & CEO, of Candente, are the Qualified Persons as defined by National Instrument 43-101 for the projects discussed above, and have reviewed and approved the contents of this release.

Complete results, maps, cross-sections and all reports on the El Oro property and the Peruvian gold-silver properties can be viewed at: http://www.candente.com.

About Candente

Candente's Management Team and Board of Directors are senior mining industry executives with a track record in the discovery and development of copper, gold and silver deposits. Candente subscribes to principles, which ensure that exploration and development activities are consistent with best practice and beneficial to the local communities.

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.

CAUTIONARY NOTE TO U.S. INVESTORS

We advise U.S. investors that this news release uses terms which are not recognized by the United States Securities and Exchange Commission ("SEC"), including "mineral resources", "measured resources", "indicated resources" and "inferred resources". The estimation of measured and indicated resources involves greater uncertainty as to their existence and economic feasibility than the estimation of proven and probable reserves. U.S. investors are cautioned not to assume that mineral resources in these categories will be converted to reserves. The estimation of inferred resources involves far greater uncertainty as to their existence and economic viability than the estimation of other categories of resources. U.S. investors are cautioned not to assume that estimates of inferred mineral resources exist, are economically mineable, or will be upgraded into measured or indicated mineral resources. U.S. investors are cautioned not to assume that mineral resources in any of these categories will be converted into reserves.

NR259

Contact Information

  • Candente Resource Corp.
    Joanne C. Freeze
    (604) 689-1957 or 1 (877) 689-1964 (toll free)
    or
    Candente Resource Corp.
    Walter Spagnuolo
    (604) 689-1957 or 1 (877) 689-1964 (toll free)
    communications@candente.com
    www.candente.com