Cadan Announces Completion of First Phase of a 3 Phase Structural Refinancing of Cadan Resources
December 1, 2014 / TNW-ACCESSWIRE / Vancouver, British Columbia/ Cadan Resources Corp. (TSXV: CXD) ("Cadan" or the "Company") announces it has completed the First Phase of 3 Phase financial restructuring of Cadan Resources Corp.. The restructuring plan follows the completion of a company-wide detailed review of Cadan's financial position and assets, and focusses on improving the balance sheet and sourcing capital. Cadan's objective following completion of the restructuring plan is to recommence mining at its flagship T'Boli mine during the first quarter in 2015.
The first phase of the restructuring plan involves the reduction of total debt by 25% over the next 2 months, combined with a reduction of operating expenses to no more than US$80,000 from the current level of over US$130,000 per month. This planned reduction is compared to an average monthly operating and overhead costs at this time last year in excess of US$640,000 per month.
The reduction of total debt involves the conversion of 39% of the principal and interest outstanding under convertible notes into shares of Cadan, with the balance to be refinanced by issuing new convertible notes. As the company indicated in its news release of November 28, 2014, it has converted $1,505,588 of the $3,907,820 in principal and interest on convertible debenture debts into shares at $0.09 per unit. On closing of the debt refinancing and settlement, the Company will issue 16,728,761 common shares and 16,728,761 common share purchase warrants, each warrant is exercisable into a common share of the Company at a price of $0.12 per share until November 30, 2015. In addition the Company will issue $2,404,232 in new convertible notes, convertible into common shares of the Company at a price of $0.12 per share until December 31, 2015. In connection with the new convertible notes, the Company will also issue a total of 20,018,600 common share purchase warrants of the Company, each warrant exercisable into a common share at a price of $0.12 per share until December 31, 2016.
The private placement and debt settlement are subject to the approval of the TSX Venture Exchange.
The partial settlement and refinance of the convertible notes is the first step toward's Cadan's objective of re-establishing T'Boli as a producing mine.
On Behalf of the Board,
Peter Main
Interim President and CEO
PeterM@CadanResources.com
For further information visit our website at www.CadanResources.com; email us at info@CadanResources.com
Phone: 778-370-1372 Fax: 604-608-5442
This press release contains forward looking statements that involve risk and uncertainty. The ability of Cadan to complete its restructuring and financing objectives is subject to market conditions and regulatory approval, and there can be no assurance that those objectives will be reached as described herein. The restart of operations at the T'Boli mine involves are subject to completing the restructuring and financing plan as currently contemplated, in addition to other risks associated with operating a mine.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
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