VANCOUVER, BC - CADAN RESOURCES CORPORATION ("Cadan" or the "Company") is pleased to announce that it has successfully negotiated the refinancing of a total of $3,637,661 in principal and interest payable on maturity of convertible debentures that became due on June 21, 2012 and July 14, 2013. Pursuant to the refinancing, the Company will issue a total of 21,825,980 common shares and $2,546,362 of new convertible debentures. The new convertible debentures will be convertible into common shares of the Company at a price of $0.08 per share until June 1, 2014. In connection with the private placement, the Company will also issue a total of 45,470,761 common share purchase warrants of the Company, each warrant exercisable into a common share of the Company at a price of $0.08 per share until June 1, 2015. Closing of the private placement is subject to approval by the TSX Venture Exchange.
The Company also announces that it has drawn down a further USD$400,000 pursuant to the secured loan facility agreement entered into with Mighty River International Ltd. in May 2013, with a further USD$600,000 being committed by the lender upon closing of the refinancing. Amounts drawn bear interest at a rate of 8 per cent per annum and are repayable in 12 months from the draw date.
The Company is in discussions to raise further funds by debt and equity to fund continued development and exploration of its T'Boli Gold Project. Activities include capital development to access identified ore lodes, establishment of mine infrastructure, level development along ore lodes, establishment and commencement of narrow vein stoping, underground diamond drilling and processing of gold ore resulting from activities. The current diamond drill program that commenced in the second quarter of this year targeting delineation of the "Golden Beam" (which is a shoot within the main South Vein System) has continued and compilation of latest results has commenced. An update of project activities including exploration results is being prepared and will be published in the next quarterly MD&A report which is expected to be out by the end of November as required.
T'Boli Gold Production for the Quarter to the end of September
----------------------------------------------- | | grams |oz. | tons milled | |---------------------------------------------| |July | | | | | | 13,534.30 | |2,126.00 | | | | | | | | | 435.14| | |---------------------------------------------| |August | | | | | |8,665.90 | |1,044.00 | | | | | | | | | 278.62| | |---------------------------------------------| |September| | | | | |7,068.00 | | 809.00 | | | | | | | | | 227.24| | |---------------------------------------------| |Total | | | | | | 29,268.20 | |3,979.00 | | | | | | | | | 940.99| | -----------------------------------------------
For further information visit our website at www.cadanresources.com; email us at [email protected], or contact:
Robert Butchart
President
Email: [email protected]
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
NOT FOR DISTRIBUTION IN THE UNITED STATES