Candorado Operating Company Ltd.

Candorado Operating Company Ltd.

August 14, 2008 19:34 ET

Candorado Acquires 100% of Man/Prime Copper-Gold Porphyry Prospect

KELOWNA, BRITISH COLUMBIA--(Marketwire - Aug. 14, 2008) - Candorado Operating Company Ltd. (TSX VENTURE:CDO) (BERLIN:HQU) (FRANKFURT:HQU) ("Candorado") is pleased to announce that it has entered into a purchase agreement with Bearclaw Capital Corp enabling it to acquire the remaining 49% of the Man/Prime Property ("Property") located 35 km north of Princeton, BC. This acquisition replaces the remaining terms of the option agreement between the parties announced on January 4, 2007. Candorado now owns a 100% interest in the Property.

The Man/Prime Property is located in a favourable belt of rocks that hosts porphyry copper-gold mines from Copper Mountain near Princeton to the south, to Afton near Kamloops to the north. On the Property the alkalic porphyry copper-gold mineralization is within porphyritic andesites of the Upper Triassic Nicola Group that has been intruded by Jurassic granodiorite.

The Man/Prime Property represents an exceptional opportunity for Candorado to establish itself in a known and productive copper-gold porphyry belt in an area of south-central BC with an excellent infrastructure. Candorado believes that aggressive exploration could substantially enhance the Property's potential.

Candorado will pay the following consideration for the acquisition:

Cash Payments. The following cash payments to Bearclaw:

1. $100,000 on signing of the agreement;

2. $100,000 on December 31, 2008; and

3. $100,000 on July 31, 2009.

Issuance of Shares. Candorado shall issue the following Shares, and deliver certificates representing the Shares registered in the name of Bearclaw, as follows:

1. One hundred and fifty thousand (150,000) Shares upon the Exchange's acceptance of Candorado's application to issue the Shares;

2. One hundred and fifty thousand (150,000) Shares on or before December 31, 2008; and

3. One hundred and fifty thousand (150,000) Shares on or before July 31, 2009.

Net Smelter Returns Royalty. Candorado will pay to Bearclaw a Net Smelter Returns Royalty of 1.25% upon commencement of commercial production. Candorado may buy out this royalty at any time for $1,250,000.

The completion of the transaction is subject to final acceptance of any filings required to be made with the TSX-V.

On behalf of the Board

Rene Bernard, President

About Candorado

Candorado is one of British Columbia's largest mineral rights land holder with its properties in Central British Columbia, the Serb Creek molybdenum deposit, the Eldorado property next to the BC Metal's Red Chris copper porphyry deposit and the Pitt Island VMS prospect all located in Northern British Columbia. Management is actively seeking joint venture partners for its mineral land holdings as an excellent way to further develop these properties to their potential while reserving its treasury for new acquisitions and property exploration.

Rene Bernard, Chairman

ON BEHALF OF THE BOARD OF DIRECTORS of Candorado Operating Company Ltd.

The statements made in this News Release may contain certain forward-looking statements. Actual events or results may differ from the Company's expectations. Certain risk factors may also affect the actual results achieved by the Company.

The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy and accuracy of this Release.

Contact Information

  • Candorado Operating Company Ltd.
    Rene Bernard
    (250) 979-2590
    (250) 860-2957 (FAX)