Zahena has the right to earn up to 100% interest in the Arikepay property from Candente Copper by completing the following terms:
Under the First Option, Zahena has the right to earn up to a 75% interest by making payments to Candente Copper that total USD$4 million ("M") and exploration expenditures that total USD$5 M by March 13, 2019. USD$50,000 was received by Cobriza Metals, (a subsidiary of the Company) upon signing the Agreement (on November 28, 2013). Payments of $750,000, $1,000,000 and $2,000,000 are due on March 13 of 2017, 2018 and 2019, respectively.
In addition to the requirements above, Zahena also must complete a minimum of 3,000 metres of drilling or pay Candente $100.00 per metre for any metres not drilled. The minimum drilling requirement was to be completed by the First Anniversary, March 13, 2016, however the Company has agreed to grant a one year extension for that requirement. Zahena advised the Company that the commencement of drilling has been delayed due to permitting and authorization delays. Drilling is expected to begin by mid-2016.
Upon completion of the First Option, Zahena would have the right to earn an additional 25% interest (for a total 100%) subject to a 2% Net Smelter Return ("NSR"), by completing a bankable feasibility study and by paying the Company USD$10M within 5 years of earning its initial 75% interest (the "Second Option").
Upon completing the Second Option, Zahena would retain the right to purchase 1% of the NSR for USD$5M at any time up to 60 days from the start of commercial production, leaving Candente with a 1% NSR. A final payment of USD$5M would be required to be made to Candente within 60 days from the start of commercial production or within 4 years of the completion of the bankable feasibility study, whichever is completed first.
About Candente Copper
Candente Copper is a mineral exploration company engaged in the 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.
Michael Thicke, P.Geo, Director and Vice President Exploration, and Joanne C. Freeze, P.Geo, Director and CEO, both Qualified Persons (QP) as defined by National Instrument 43-101, have reviewed and approved this news release.
This news release may contain forward-looking statements including but not limited to comments regarding the timing and content of upcoming work programs, geological interpretations, receipt of property titles, potential mineral recovery processes, etc. Forward-looking statements address future events and conditions and therefore involve inherent risks and uncertainties. Actual results may differ materially from those currently anticipated in such statements. Candente Copper relies upon litigation protection for forward-looking statements.
On behalf of the Board of Candente Copper Corp.
"Joanne C. Freeze" P.Geo.
For further information please contact:
Manager, Investor Relations
mobile: +1 (604) 306-8477
local: + 1 (604) 689-1957 ext 3