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Cayden Resources Sells a Fraction of its Morelos Sur Gold Concession for $15.7 million
By: Marketwired .
Feb. 1, 2013 06:00 AM
VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/01/13 -- Cayden Resources Inc. (TSX VENTURE:CYD) ("Cayden" or the "Company") is pleased to announce the sale by Cayden's Mexican subsidiary LC Mines, S.A. de C.V. ("LCM") of two blocks of the eastern portion (15%) of its Morelos Sur Concession "Morelos East Concession" to Desarrollos Mineros San Luis, S.A. de C.V. ("DMSL"), Goldcorp's subsidiary which owns and operates the adjacent Los Filos mine in Guerrero State, Mexico.
The sale represents a total of 2,492 hectares of Cayden's 17,076 hectare concession for a total cash consideration of $15,744,000 USD plus a royalty to Cayden, of which 50% of the cash will be paid on or before February 28, 2013 and the balance to be paid once the subdivided titles of the Morelos East Concession are registered in the name of DMSL.
DMSL will acquire the portion subject to a reserved royalty in favour of LCM plus the existing government royalty (2.5%). The reserved royalty to LCM is a sliding scale royalty commencing after the first 250,000 ounces, starting at 0.75% and up to 1.75% when gold is over $2500/ounce.
Ivan Bebek, Cayden Resources CEO commented on the transaction: "We are very pleased to have reached mutually acceptable terms with Goldcorp in this partial concession sale and look forward to maintaining an excellent relationship with them moving forward. The funds received from this transaction will be used to continue to advance exploration programs at both of our Mexican gold properties. The remainder of the Morelos Sur concession hosts the La Magnetita and Las Calles areas that continue to be the project's high value exploration targets."
On Behalf of the Board,
Ivan Bebek, President and CEO
About Cayden Resources - Cayden is a junior mining company focused on delivering shareholder value through the acquisition, exploration and development of precious metal projects located in North America. The management team at Cayden is highly experienced with an impressive track record of success in the discovery, development and financing of mineral projects. Cayden is also strongly committed to the highest standards for environmental management, social responsibility, and health and safety for its employees and neighboring communities. Cayden trades on the TSX Venture Exchange under the symbol "CYD". For more information on Cayden Resources, please visit our website at www.caydenresources.com.
Forward Looking and other Cautionary Information
This news release does not constitute an offer to sell or a solicitation of an offer to buy nor shall there be any sale of any of the Common Shares in any jurisdiction in which such offer, solicitation or sale would be unlawful. The Common Shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act") or any state securities laws and may not be offered or sold within the United States or to, or for the benefit of, U.S. persons (as defined in Regulation S under the U.S. Securities Act) unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to an exemption from such registration requirements.
Neither the TSX Venture Exchange nor any other regulatory authority accepts responsibility for the adequacy or accuracy of this release.
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