VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 02/11/13 -- Cardero Resource Corp. ("Cardero" or the "Company") (TSX: CDU)(NYSE MKT: CDY)(NYSE Amex: CDY)(FRANKFURT: CR5) announces that it has closed the last tranche of its non-brokered private placement announced October 31, 2012 to raise additional gross proceeds of $1,112,500.
Non-brokered Private Placement
On February 8, 2013 the Company closed the second and final tranche of the non-brokered private placement announced October 31, 2012 ("Offering"). The Company issued 2,472,222 shares to raise gross proceeds of $1,112,500. In connection with this closing, the Company paid cash finder's fees of $55,626 and issued 123,610 finder's warrants, with each finder's warrant exercisable to purchase one common share at a price of $0.50 until February 8, 2014. All common shares issued in the Offering will have a hold period in Canada of four months from date of issuance. The common shares and warrants issued or to be issued pursuant to the Offering have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States or to U.S. Persons unless registered under the Act or unless an exemption from registration is available. No insiders participated in the final tranche of the Offering and there will not be any change of control as a result of the closing of the final tranche of the Offering.
The Company raised a total of $7,697,957 in connection with the closing of the Offering and the flow-through offering announced December 20, 2012 and will now seek to finalize formal documentation with respect to the matching debt facility with Sprott Resource Lending Partnership (as previously announced on October 23, 2012). Collectively these funds will provide sufficient capital to allow the Company to complete a Bankable Feasibility Study on the Carbon Creek metallurgical coal asset scheduled for later this year; including environmental baseline work, and for general working capital.
ABOUT CARBON CREEK METALLURGICAL COAL DEPOSIT (100% working interest)
The Carbon Creek deposit is an advanced metallurgical coal development project located in the Peace River Coal District of northeast British Columbia, Canada. The Company released results of an independent prefeasibility study ("PFS") (including an updated resource estimate) in September 2012.
PREFEASIBILITY STUDY HIGHLIGHTS - NPV(8%) US$633M POST-TAX, POST NPI BASIS
-- First coal scheduled for Q4, 2014-- Increased Measured & Indicated Resource - 468Mt of ASTM mvB coal-- Base case NPV8 US $633M on a post-tax, post NPI basis, with 23.7% IRR-- Undiscounted cash flow valuation of US $2,132M-- Established initial Proven and Probable Reserve of 121Mt (initial 20 year mine life)-- Clean coal production rate estimated at 4.1Mtpa (2016 to 2034)-- Pre-production capital estimated at US $217M with an additional US $250M to reach full production
As the Company continues to advance the Carbon Creek property toward production, Cardero has had its Project Description accepted by provincial and federal regulators thereby initiating the environmental assessment process, which is a key component of securing an operational mining license. In 2012, the Company executed its initial port capacity contract with Ridley Terminals, and is currently negotiating with CN Rail to transport the coal to port and with BC Hydro to supply electrical power to the mine site.