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Message: Cardero Resource acquires 49.57% of Coalhunter Mining..
Cardero Resource acquires 49.57% of Coalhunter Mining
2010-06-21 10:44 PT - News Release
Shares issued 58,685,602
CDU Close 2010-06-18 C$ 1.29
Mr. Hendrik van Alphen reports
CARDERO SECURES 49.5% INTEREST IN COALHUNTER MINING CORPORATION THROUGH PARTICIPATION IN EQUITY FINANCING
Cardero Resource Corp. has acquired approximately 49.5 per cent of the common shares of Coalhunter Mining Corp. through a private placement. Coalhunter is a private British Columbia company which has the right to acquire a majority interest in the Carbon Creek coalfield in northeastern British Columbia.
Under the terms of the subscription agreement between Coalhunter and Cardero, Cardero has acquired 12 million common shares of Coalhunter at a price of 30 cents per share for a total investment of $3.6-million. Through participation in this financing, Cardero has acquired a 49.57-per-cent interest in Coalhunter. Cardero has a right to maintain its percentage interest in Coalhunter so long as it holds at least a 10-per-cent interest and, in certain circumstances, the right to increase its position to 51 per cent. Upon the completion of the private placement, Keith Henderson, Cardero's vice-president, exploration, was appointed as a director of Coalhunter. Should Cardero increase its interest to 51 per cent, it would be entitled to nominate an additional director.
Upon closing the private placement, Coalhunter president Michael Hunter commented that: "We are very pleased to have secured the interest and involvement of Cardero Resource Corp. It's a key step in our program to unlock the value of the Carbon Creek asset."
Acquisition of this interest in Coalhunter is in line with Cardero's focus on bulk commodities and allows the company to leverage significant value out of its considerable cash funds available for acquisitions and investments.
"Since completing the 100-per-cent-cash sale of Pampa de Pongo in January, 2010, the company has been seeking quality investment opportunities," stated Henk van Alphen, Cardero's president and chief executive officer. "Technical staff and consultants have completed due diligence on more than 15 projects or companies and have placed bids or made offers on several of them. The significant challenge of finding the right project at the right price in the current market environment has become apparent to everyone involved."
"This investment in Coalhunter is the second of several such investments that Cardero has completed or is currently negotiating," continued Mr. van Alphen. "Investments such as that in Coalhunter, where Cardero can be positioned at the earliest stage, represent tremendous potential value for Cardero shareholders."
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