Private Placement
August 13, 2012 Symbol: CXD-TSXV
NEWS RELEASE Frankfurt: A0MZ25
CADAN ANNOUNCES UPDATE TO PRIVATE PLACEMENT AND
SUPPLEMENTARY AGREEMENT FOR PHILCO MINING CORPORATION
EXPLORATION RIGHTS
VANCOUVER, BC - CADAN RESOURCES CORPORATION (TSX-V: CXD; Frankfurt:
AOMZ.25) (“Cadan” or the “Company”) announces that it will be proceeding with the second tranche
of the previously announced private placement financing for a total of up to 50,000,000 units (the
“Units”) at a price of
.15 per Unit for gross proceeds of up to $7.5million. Each Unit consists of one
common share in the capital of the Company and one share purchase warrant, each warrant is exercisable
to acquire an additional common share for a period of 2 years from the closing date at a price of
.20 for
the first year and at a price of $.25 for the second year.
The Company has sold 9,558,834 units for total gross proceeds of $1,433,825 pursuant to the first
tranche. The Company may pay finder’s fees of up to 6% in cash, units or warrants upon the final
closing of the private placement. Net proceeds from the private placement will be applied towards
advancement of the Company’s Philippine mineral properties and general working capital.
The Company also announces that it has entered into a supplementary mineral property and royalty
agreement with G. Lluch & Sons Inc. (“G. Lluch”) and Philco Mining Corporation (“Philco”). G.
Lluch is a private Philippines company that granted certain mineral property rights to Philco. The
supplementary agreement amends and updates various property access, exploration and mining rights,
and royalty agreements relating to the Batoto-Tarale mineral project originally entered into between G.
Lluch and Philco. Pursuant to the supplementary agreement, Cadan agreed to issue 125,000 common
shares to G. Lluch. Philco agreed to pay to G. Lluch USD$50,000 and 600,000 Philippine pesos
annually until commercial production. G. Lluch will also receive a production royalty of CAD$2.00
per ounce of gold. The production royalty may be purchased by Philco prior to the commencement of
commercial production in consideration for CAD$2,000,000.
The above transactions are subject to approval by the TSX Venture Exchange.
info@cadanresources.com, or contact:
Robert Butchart John D. Anderson
President / CEO Chairman