Cadiscor: New Terms for the Acquisition of the Sleeping Giant Mine and Mill
September 22 2008 - 8:30AM
Marketwired
Cadiscor Resources Inc. ("Cadiscor") (TSX VENTURE: CAO)(FRANKFURT:
DQN) is pleased to announce amendments to the formal agreement with
IAMGOLD Corporation ("IAMGOLD") granting Cadiscor the option to
acquire a 100% interest in the Sleeping Giant Mine and its related
milling facilities(the "Mine'').
Cadiscor will take possession of the Mine at the end of October
2008.
The Mine is located in the Abitibi region of Quebec,
approximately 80 km north of Amos, and has been in production since
1988.
On signature of the agreement on December 11, 2007, Cadiscor
made a cash payment of CAN $300,000 and issued 600 000 common
shares to IAMGOLD. Cadiscor also issued 1,000,000 warrants to
IAMGOLD entitling it to purchase the same number of common shares
of Cadiscor at a price of $1.00 until April 1st, 2009. The terms of
the warrants have been changed: the subscription price is now $
0.70 per share and they are exercisable until December 31,
2010.
The original agreement provided for Cadiscor to pay IAMGOLD an
amount of CAN $5,000,000 upon taking possession of the Mine, either
in cash or by issuance of an equivalent amount in common shares, at
Cadiscor's sole discretion. The amended agreement calls for
Cadiscor to issue IAMGOLD CAN $1.5 million in common shares priced
at $0.35 per share. The CAN $3.5 million balance will be paid by
the issuance of an unsecured convertible debenture bearing interest
at 5%. The interest will be paid yearly, in advance. This
three-year debenture will be convertible by IAMGOLD into Cadiscor's
shares at a conversion price of $0.47/share the first year,
$0.51/share the second year and $0.56/share the third year.
Cadiscor may repay the debenture for cash at any time. Cadiscor
may force conversion should the shares trade at a price that is at
least 15% higher than the appropriate annual conversion price
premium for a twenty-day trading periods.
The remaining terms of the original agreement (see December 11,
2007 press release) remain in effect.
The amendments to the agreement are subject to the approval of
the TSX Venture Exchange.
Forward-Looking Statements
This press release contains forward-looking statements subject
to certain risks and uncertainties. There can be no assurance that
these statements will prove to be correct, and actual results and
future events could differ materially from those implied by such
statements. These risks and uncertainties are discussed in the
annual report filed with the securities commissions of Alberta,
British Columbia and Quebec, and in the 10-KSB annual report filed
with the US Securities and Exchange Commission. The Company does
not undertake to publicly revise or update any such statements on
the basis of new Information, future events or any other event.
THE TSX VENTURE EXCHANGE DOES NOT ACCEPT RESPONSIBILITY FOR THE
ADEQUACY OR ACCURACY OF THIS RELEASE.
Contacts: Cadiscor Resources Inc. Michel Bouchard President
450-449-0066/1-877-440-0066 mbouchard@cadiscor.com www.cadiscor.com
Cadiscor Resources Inc. Linda Plante Investor Relations
450-449-0066/1-877-440-0066 lplante@cadiscor.com 314 Finance Corp.
Tasso Baras Investor Relations 604-738-3882
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