Candorado Operating Company Ltd.
TSX VENTURE : CDO
FRANKFURT : HQU
BERLIN : HQU

Candorado Operating Company Ltd.

July 16, 2008 09:00 ET

Candorado Operating Company Ltd. Enters Into Letter of Intent With Christopher James Gold Corp.

KELOWNA, BRITISH COLUMBIA--(Marketwire - July 16, 2008) - Candorado Operating Company Ltd. (the "Company") (TSX VENTURE:CDO)(FRANKFURT:HQU)(BERLIN:HQU) is pleased to announce that it has entered into a letter of intent dated July 15, 2008 with Christopher James Gold Corp. ("CJGC") to enter into three transactions with CJGC: to provide CJGC with the option to acquire Candorado's interest in the Canoe Creek Hot Springs Geothermal Project, to purchase the Copper Creek Au-Cu Project, and to acquire a 60% interest in Candorado's Tillicum Lake Au-Cu Project.

Canoe Springs Geothermal Project. CJGC can acquire a 100% interest in the Canoe Hot Springs Geothermal Project under the following terms: make payments of $200,000 upon signing the agreement and an additional payment of $200,000 on August 15th, 2008, for a 50% interest in the project; make an additional $100,000 payment on September 25, 2008 and a final payment of $1,000,000 on December 15, 2008 for 90% interest in the project. Candorado will retain a 10% free-carried interest, which can be bought out by CJGC at any time over the next 5 years for $2.5 million.

Copper Creek Au-Cu Project. CJGC has the option to acquire a 100% interest in the Copper Creek Au-Cu Project from Candorado on the following terms: upon execution of the agreement, pay Candorado $125,000, and on July 15, 2009, make an additional payment of $140,000.

Tillicum Creek Au-Cu Project. Under the terms of the Letter of Intent, CJGC can earn a 60% interest in the Tillicum Creek Au-Cu Project from Candorado. The terms of the Option consist of an initial payment to Candorado of $50,000 upon signing the agreement, and a commitment to spend $200,000 and $250,000 on exploration by July 31, 2009 and July 31, 2010, respectively.

The completion of the transaction is subject to the execution of a definitive agreement, technical and legal due diligence by CJGC, and final acceptance of any filings required to be made with the TSX-V.

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)
    Website: www.candorado.com