VANCOUVER, BC / ACCESSWIRE / July 14 2014 / CADAN RESOURCES CORPORATION ("Cadan" or the "Company") following up on our Corporate Update of May 6, 2014, the management team and Board of Directors is continuing to progress with our internal strategic review and has completed a number of the short term objectives which are outlined below:
The due date for repayment of loans to Mighty River International Limited under the current facility agreement has been extended to December 31, 2015 for all tranches and without changes to other terms in the agreement.
Discussions regarding term extensions are continuing with holders of CDN$3.7 million of convertible loans that matured on June 1, 2014. Cadan is negotiating with note holders to replace the existing notes with new notes with a later maturity date.
Strategic Review Update
1.A geological consultant has been engaged to assist in research, compilation, digitisation, presentation and interpretation of existing exploration data from the TMC and Batoto project areas. Cadan will receive a report including a short term budget for the commencement of exploratory work in and around T'Boli in the first instance.
2.As part of the geological review Cadan will complete a structural geological interpretation and model of the existing T'Boli mine, which will enhanced the understanding of the geological geometry and assist with more efficient development and exploration of the resource.
3.The Cadan team is nearing completion of the strategic review and is on track to complete the review by the end of July 2014. Key components to complete the strategic review include:
a.Reviewing the remaining debt with the intention of extending the maturity date.
b.Other exploration assets in addition to the T'Boli mine, defining priorities and strategy going forward including capital requirements.
c.Review management processes at both the corporate and operation level.
d.Investigate all contractual and financial agreements.
e.Conduct shareholder feedback.
T'Boli Gold Project Update
Processing of the medium grade stockpile at T'Boli has commenced.
Excavation of a small tailing storage facility with a capacity of approximately 25,000 tonnes is nearing completion on the newly acquired area adjacent to the existing tailings facility.
The mine at the T'Boli Operation has been temporarily closed and flooded in order to reduce holding costs and prevent illegal small scale miners accessing the workings while the strategic review is being undertaken.
Further reductions in manpower and costs have occurred at the T'Boli Operation.
The Cadan Board understands that the last 2 years have been difficult for shareholders, and has acted accordingly in making changes. Going forward, it is a clear objective of the Board to rebuild and develop the full potential of its exciting suite of assets. Once the Board has completed the strategic review as stated above, the objective is to ensure Cadan is appropriately resourced to take full advantage and extract realistic value from the assets.
Regarding the 5 year mine budget and schedule, the Company has not completed a Preliminary Economic Assessment as defined by National Instrument 43-101, and thus there is a greater level of risk to put the mine into production and no guarantee that mining will be found to be economic.
The decision to commence production at T'Boli and the Company's plans for a mining operation as disclosed herein (the "Production Decision and Plans") were based on economic models prepared by the Company in conjunction with management's knowledge of the property and the existing preliminary estimates of the measured, indicated and inferred mineral resources on the property. The Production Design and Plans were not based on a preliminary economic assessment, a pre-feasibility study or a feasibility study of mineral reserves demonstrating economic and technical viability. Accordingly, there is increased uncertainty and economic and technical risks of failure associated with the Production Design and Plans, in particular the risk that mineral grades will be lower than expected, production and economic variables may vary considerably, due to the absence of a detailed economic and technical analysis according to and in accordance with NI 43-101. Inferred mineral resource estimates are considered too speculative geologically to have the economic considerations applied to them that would enable them to be categorized as mineral reserves.
The decision by Cadan to become a gold producer or undertake trial mining at T'Boli has not been based to date on a feasibility study of mineral reserves in accordance with CIM Standards of Disclosure for Mineral Resources and Mineral Reserves 2010, but rather has been based primarily on trial or pilot mining and mineral processing guided by limited drilling and sampling. There is however no certainty that the proposed processing operation, or the development of the deposit, will be economically viable.
Qualified Person / Quality Assurance and Quality Control ("QA/QC")
Technical aspects of this news release were reviewed and approved by Howard Lahti, BSc Geology, MSc Geochemistry, PhD Litho-Geochemistry, Registered Professional Geoscientist of New Brunswick. Mr. Lahti is an independent consultant to Cadan, and a qualified person under NI 43-101. Mr. Lahti has verified the data disclosed in this news release, including sampling, analytical and test data underlying the information and opinions contained in this news release.
On behalf of the board of directors,
President / CEO
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.
Forward Looking Statements
Certain statements in this release are forward-looking statements, which reflect the expectations of management. Forward-looking statements consist of statements that are not purely historical, including any statements regarding beliefs, plans, expectations, assumptions or intentions regarding the future, including but not limited to that a structural geological interpretation and model of the existing T'Boli mine will be completed as scheduled, that negotiations will be successful to replace the existing notes with new notes with a later maturity and that the Company will complete its strategic review by end of July 2014. Such forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Particular risks applicable to this press release include risks associated with ongoing and planned exploration and production programs, including the ability to complete the programs as planned, the results being sufficient to confirm or expand resources on the property, or the ability to convert resources into reserves. There is no guarantee that exploration or production will result in an economically viable project due to these and numerous other risks and uncertainties normally associated with production stage mining projects. Such statements are subject to risks and uncertainties that may cause actual results, performance or developments to differ materially from those contained in the statements. No assurance can be given that any of the events anticipated by the forward-looking statements will occur or, if they do occur, what benefits the Company will obtain from them. These forward-looking statements are made as of the date of this news release and, except as required by law, the Company assumes no obligation to update these forward-looking statements, or to update the reasons why actual results differed from those projected in the forward-looking statements. Readers are cautioned not to rely on forward looking information as a result. The reader is referred to the Company's most recent annual and interim Management's Discussion and Analysis for a more complete discussion of such risk factors and their potential effects, copies of which may be accessed through www.cadanresources.com or the Company's page on SEDAR at http://www.sedar.com.
SOURCE: CADAN RESOURCES CORPORATION