Fortescue Acquires Strategic Interest In Candente Copper
May 22 2020 - 9:07AM
Candente Copper Corp. (TSX:DNT, BVL:DNT) ("Candente Copper” or the
“Company”) is pleased to announce that Nascent Exploration Pty
Ltd., a wholly owned subsidiary of Fortescue Metals Group Ltd.
(collectively “Fortescue”) has increased its holding in Candente
Copper from a 9.72% to a 19.92% interest by subscribing for
27,500,000 shares for gross proceeds of Cdn$1,375,000 through a
non-brokered private placement (the “Private Placement”).
Fortescue is one of the largest global iron ore
producers, recognised for its culture, innovation and
industry-leading development of world class infrastructure and
mining assets in Western Australia. Fortescue’s recent
Australian exploration activity has focussed on early stage target
generation for copper-gold in addition to its extensive iron
ore deposits in Western Australia, while it simultaneously builds
on its world-class exploration expertise, operational reputation
and capability through exploration in highly prospective areas such
as South America, including Peru, to deliver shareholder value.
“We are very pleased to have a recognized global
leader in the mining industry as a strategic investor.
Considering Fortescue’s cornerstone values including safety,
protection of the environment and contributing to opportunities for
local communities by working together, we believe they are a great
fit to support Candente Copper and the Cañariaco project,”
commented Joanne Freeze, CEO.
In addition to this placement, Fortescue will at
its cost allocate two engineers to work on a part time joint
technical committee with Candente Copper nominees, with a goal to
identify the optimum strategy for the development of the Cañariaco
project.
Fortescue was previously granted and retains the
right to appoint one person as a director of Candente Copper as
well as certain pre-emptive rights. These rights include
anti-dilution rights as well as a Right of First Refusal on any
debt financing or royalty or stream agreements on any of Candente
Copper’s assets (but does not include an earn-in joint venture
proposals). Details of such are given below.
The Private Placement comprises the sale of
27,500,000 common shares (the “Shares”) at a price
of $0.05 per share to raise gross proceeds of Cdn$1,375,000.
The gross proceeds of the Private Placement are to be used for
general corporate purposes and to fund costs related to the
Cañariaco Copper Project. The Shares will be subject to a
statutory 4 month and one day hold period commencing the day of
closing of the Private Placement.
Details on Rights Granted to
Fortescue
In connection with the Private Placement, and
provided that Fortescue beneficially owns or has the right to
acquire not less than 5.0% of the issued and outstanding Common
Shares of Candente Copper (on a diluted basis), Fortescue was
granted the following:
- the right (but not the obligation)
to appoint one person as a director of Candente Copper;
- the right (but not the obligation)
to participate, on a pro rata basis, in any future equity financing
of equity securities undertaken by Candente Copper to the extent
required to allow Fortescue to maintain the same equity ownership
interest (on a diluted basis) in Candente Copper that it possessed
immediately prior to closing of the equity financing such that
Fortescue does not suffer any equity dilution; and
- if within two (2) years from the
Closing Date of the Private Placement, Candente Copper receives a
bona fide offer (a “Non-Equity Financing Offer”)
from a third party to provide Candente Copper with any non-equity
financing proposal including, but not limited to, debt financing or
a royalty or stream for the purpose of funding the future
exploration or development of any of Candente Copper’s assets (but
for greater certainty does not include an earn-in joint venture
proposal) and Candente Copper wishes to accept such Non-Equity
Financing Offer, then Fortescue shall have the option to provide
such Non-Equity Financing.
The Private Placement is subject to Candente
Copper’s completion of its final filings with the Toronto Stock
Exchange.
About Candente Copper
Candente Copper is a mineral exploration company
engaged in acquisition, exploration, and development of mineral
properties. The Company is currently focused on its 100% owned
Cañariaco project, which includes the Feasibility stage Cañariaco
Norte deposit as well as the Cañariaco Sur deposit and Quebrada
Verde prospect, located within the western Cordillera of the
Peruvian Andes in the Department of Lambayeque in Northern
Peru.
On behalf of the Board of Candente
Copper Corp.
“Joanne C. Freeze” P.Geo.President, CEO and
Director___________________________________For further information
please contact:
“Joanne C. Freeze” P.Geo.President, CEO and
DirectorTel +1
604-689-1957info@candentecopper.comwww.candentecopper.com
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