Cayden Resources Inc.
TSX VENTURE : CYD

Cayden Resources Inc.

February 08, 2011 09:00 ET

Cayden Closes $20.2 Million Bought Deal Financing

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Feb. 8, 2011) -

NOT FOR DISTRIBUTION TO THE UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES.

Cayden Resources Inc. (TSX VENTURE:CYD) ("Cayden" or the "Company") is pleased to announce that it has completed its previously announced short form prospectus offering of 4,500,000 shares (the "Shares") of the Company (the "Offering") at a price of $4.50 per Share to raise gross proceeds of $20,250,000.

The Offering was underwritten by Canaccord Genuity Corp. and Clarus Securities Inc. (collectively the "Underwriters") for which the Underwriters received a cash fee equal to 5% of the gross proceeds raised in the Offering.

The Company also issued the Underwriters an aggregate of 225,000 non-transferable compensation options (the "Underwriter's Options"). Each Underwriter's Option is exercisable into common shares of the Company at a price of $4.50 per common share until February 8, 2013. 

The Shares were issued in Canada by way of a short form prospectus filed with the securities regulatory authorities in the Canadian provinces of British Columbia, Alberta, Saskatchewan, Manitoba, Ontario, New Brunswick, Nova Scotia, Prince Edward Island and Newfoundland and Labrador. The securities were issued in the United States on a private placement basis. The securities offered have not been and will not be registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements.

The Company intends to use the net proceeds from the Offering to fund the advancement of the Company's Morelos Sur project in Mexico, where it currently has three core drill rigs operating, as well as for general corporate purposes.

About Cayden Resources Inc. - Cayden is a junior mineral exploration company focused on the rapid exploration and development of high quality mining assets located primarily in North and South America. Managed by highly skilled and successful technical and financial professionals, Cayden is well financed with no debt. 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. More information about Cayden is available at www.caydenresources.com.

All news releases relating to this offering will include the following statement: This news release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities described herein have not been and will not be registered under the United States Securities Act of 1933, as amended, or the securities laws of any state and may not be offered or sold within the United States, absent such registration or an applicable exemption from such registration requirements.

Neither the TSX Venture Exchange nor any other regulatory authority accepts responsibility for the adequacy or accuracy of this release.

Contact Information