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Cadan Resources Corp. Corporate Update

Tuesday, 06 May 2014 11:47 AM

Cadan Resources Corporation

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VANCOUVER, BC / ACCESSWIRE / May 6, 2014 / CADAN RESOURCES CORPORATION ("Cadan" or the "Company") Cadan's Board of Directors and Management structure has undergone significant changes over the past twelve months, culminating in the departure of four (4) directors at Cadan's AGM.

Shareholder action at the AGM drove the change, resulting in the board reducing to four (4) Directors in the short-term, including Mr. Peter Cunningham remaining in the position of President and CEO.

The past twelve months have been a particularly difficult year for the Company through limited access to funding and legacy issues impacting production at the T'Boli operation. This combined with Board and Management disruptions, have negatively impacted the Company's performance during these turbulent times.

The Company recognises that in order to successfully develop its assets and rebuild it needs to be adequately funded, as well as, appropriately managed and structured for the scale of the business to actively attract investments.

Recent additions to the Board of Directors and management will be the nucleus for rebuilding the corporate structure and management. Our first step will be to commence a Strategic Review (the "review") of the entire Company. This review is expected to take 3 to 4 months with Mr. Cunningham President & CEO managing and directing the process as well as committing to provide shareholders with an update on the review by the end of June 2014.

The Strategic Review will include:

-Reviewing Debt with the aim of restructuring

-Assess Status of T'Boli including optimising production, costs and Capital requirements

-Exploration assets, evaluate brownfield and greenfield opportunities defining priorities and strategy going forward including capital requirements

-Review management processes at both the corporate and operation.

-Determine appropriate board size and identify list of appropriate candidates who can contribute to the business

-Investigate all contractual and financial agreements

-Conduct shareholder feedback

The objective of the Strategic Review is to identify any structuring and financing issues within Cadan and its operations, provide viable working solutions and develop a positive business plan to move forward. The review will also identify capital requirements to appropriately fund Cadan for the next 2 years, along with providing production and earnings targets.

In the interim the Company will draw down a further US$500,000 from Mighty River International under the existing facility agreement to fund dewatering and maintenance at the T'Boli mine and commence processing its low-grade stockpiles. This production is expected to provide cash flow which will be directed to the affairs of the Company's Philippine business.

For further information visit our website at www.cadanresources.com; email us at [email protected], or contact: Peter Cunningham at [email protected]

Neither 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.

 

SOURCE: Cadan Resources Corporation  

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