FORTESCUE VALIDATES CANARIACO PROJECT HELD BY CANDENTEObviously this is great news and validation of the Canariaco project held by Candente Copper.
Candente Copper Announces Private Placement With Fortescue Metal
ANCOUVER, British Columbia, Dec. 14, 2022 (GLOBE NEWSWIRE) -- Candente Copper Corp. (TSX:DNT, BVL:DNT) (“Candente Copper” or the “Company”) is pleased to announce that it has entered into an agreement to complete a private placement (the “Private Placement”) with Nascent Exploration Pty. Ltd., a wholly owned subsidiary of Fortescue Metals Group Ltd. (“Fortescue”) to raise $4,000,000 through the issuance of an aggregate of 22,222,222 common shares of the Company (“Shares”) at a price of $0.18 per Share. The Private Placement remains subject to the approval of the Toronto Stock Exchange (the “TSX”) and receipt of shareholder approval in accordance with the policies of the TSX.
Giulio T. Bonifacio, Executive Chair of Candente Copper, commented, “We are very pleased to announce a premium to market equity financing which will provide working capital to further advance the Caariaco project inclusive of community engagement and permits that will allow drilling of several high priority targets in 2023. The Private Placement is a further strategic endorsement by Fortescue for the Caariaco copper project, one of the top ten undeveloped copper resources in the world of which most is classified as measured and indicated.”
Pursuant to the Private Placement, the Company will issue to Fortescue an aggregate of 22,222,222 Shares at a price of $0.18 per Share. The price per Share of $0.18 represents a premium of 26% to the 5-day value weighted average price of the Shares ending the trading day before the subscription agreement in respect of the Private Placement was executed. Fortescue currently holds 52,900,000 Shares, representing 19.4% of the outstanding Shares on a non-diluted basis, and 17.7% on a fully diluted basis. Upon completion of the Private Placement, it is anticipated that Fortescue will hold 75,122,222 Shares, representing 25.4% of the outstanding Shares on a non-diluted basis and 23.4% on a fully diluted basis. Fortescue is considered a non-arm’s length party of Candente pursuant to the policies of the TSX as it holds over 10% of the outstanding Shares. Pursuant to the policies of the TSX, the closing of the Private Placement will be subject to shareholder approval, which the Company will seek at a special shareholder meeting to be held on or before February 10, 2023.
Private Placement proceeds of $3,000,000 will be used for further development of the Company’s advanced-stage Caariaco copper project and for general working capital purposes. The remainder of the Private Placement of $1,000,000 will be used to repay the principal amount of the loan advanced by Fortescue to the Company (the “Fortescue Loan”), as announced in the Company’s press release dated September 22, 2022. In connection with the Private Placement, Fortescue has agreed to waive the payment of any interest accruing on the Fortescue Loan. The Shares issued in the Private Placement will be subject to a hold period under applicable securities laws ending four months and one day after issuance.