Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
VANCOUVER, BRITISH COLUMBIA–(Marketwire – Nov. 18, 2011) – Cayden Resources Inc. (TSX VENTURE:CYD) (“Cayden” or the “Company“) is pleased to announce that it has completed a brokered private placement for gross proceeds of CAD$7,850,000 by issuing 3,925,000 units (the “Units”) of the Company at a price of CAD$2.00 per Unit (the “Offering”). Each Unit consists of one common share plus one half of one common share purchase warrant with each whole purchase warrant exercisable into a common share at a price of $3.00 for a period of 24 months from closing (the “Warrant”). In the event that the Company’s common shares trade at a closing price on the TSX Venture Exchange of greater than $5.00 per share for a period of 20 consecutive trading days at any time after four months after the Closing Date, the Company may accelerate the expiry date of the Warrants by giving notice to the holders thereof and in such case the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
The Offering was brokered by a Syndicate led by Euro Pacific Canada Inc. and includes Fraser Mackenzie Limited (the “Agents”), The Agents received a combined cash commission of $259,800, 60,000 Units and 392,500 broker warrants entitling the Agents to purchase common shares of Company, at a price of $2.00 per share within 24 months after closing of the Offering.
The net proceeds of the financing will be adequate to fund both of the Company’s Mexico and Nevada drill programs and for general corporate purposes. The Company plans 12,000 meters of drilling at its Morelos Sur Gold Project including a 6000 meter first phase program at its Las Calles Project and 6000 meter first phase program on the large La Magnetita target pending the successful completion of surface exploration. At its Quartz Mountain program in Nevada, the Company plans a 5000 meter program consisting of RC and core drilling, which will commence shortly.
The Offering included insider participation from Ivan Bebek, President and CEO, of 85,000 Units, Dan McCoy, Chief Exploration Geologist, of 50,000 Units, Steve Cook, Director, of 50,000 Units and Peter Rees, Chief Financial Officer, of 5,000 Units and pro-group subscriptions of 30,000 Units.
On Behalf of the Board,
Ivan Bebek, President and CEO
About Cayden Resources
Cayden is a well financed junior mining company focused on delivering shareholder value through the acquisition, exploration and development of precious metal projects located throughout the Americas. 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.
