VANCOUVER, BRITISH COLUMBIA--(Marketwire - Jan. 31, 2013) - Cayden Resources Inc. (TSX VENTURE:CYD) ("Cayden" or the "Company") is pleased to announce that it has acquired an option to buy out the royalties on its Reduccion Morelos Sur and Tenantla claims as part of a planned sub-division of the concessions into separate concession areas. These areas together comprise the wholly owned Morelos Sur property. Cayden's Mexican subsidiary will be applying to divide these concessions into three new parcels consequent upon an amending agreement signed yesterday with Industrial Minera Mexico, S.A de C.V. ("IMMSA"), and a Grupo Mexico subsidiary. The buy-out option was acquired as part of the amending agreement. The Concession area comprises:
- The Morelos Sur Concession
- The Las Calles Concession
- The Morelos East Concession
To see Figure A please visit the following link: http://media3.marketwire.com/docs/cyd131i.pdf or visit our website www.caydenresources.com for a map of the sub-divided concession areas.
Under the original IMMSA agreement, a 3.5% net smelter applied to the Concession areas consisting of 2.5% payable to the Geologic Service of Mexico (the "SGM") and 1% payable to IMMSA. An advance royalty payment of $200,000 to IMMSA commences in 2013 until the commencement of production when the 1% NSR was to apply.
The new areas will be subject to the following revised royalties and royalty buy-out options:
- The Morelos Sur Concession will be subject to the 2.5% NSR payable to the SGM but will now carry a 2% NSR payable to IMMSA and an advance minimum royalty of $200,000 per annum. The 2% NSR and the advance royalty can be purchased for $7 million within the next 3 years or for $20 million anytime thereafter.
- The Las Calles Concession will be subject to the 2.5% payable to the SGM and a 2% NSR payable to IMMSA which can be purchased at any time for $3 million.
- The Morelos East Concession, which is comprised of an east block and a west block and surrounds Goldcorp's Los Filos and El Bermejal mines, will be subject to the 2.5% royalty payable to the Mexican SGM. The 1% NSR payable to IMMSA has been purchased for $10,000.
Ivan Bebek, Cayden's President and CEO stated: "We are pleased to have renegotiated fixed terms and buy-out options on the royalties associated with our Morelos Sur property. The application to divide the Morelos Sur Concessions into three new parcels provides additional flexibility for Cayden going forward to be able to deal separately with these areas."
On Behalf of the Board,
Ivan Bebek, President and CEO
About Cayden Resources - Cayden is a junior mining company focused on delivering shareholder value through the acquisition, exploration and development of precious metal projects located in North America. The management team at Cayden is highly experienced with an impressive track record of success in the discovery, development and financing of mineral projects. Cayden is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighboring communities. Cayden trades on the TSX Venture Exchange under the symbol "CYD". For more information on Cayden Resources, please visit our website at www.caydenresources.com.
Forward Looking and other Cautionary Information
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
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