Cadiscor Takes Over the Sleeping Giant Mine
November 03 2008 - 8:30AM
Marketwired
Cadiscor Resources Inc. ("Cadiscor") (TSX VENTURE: CAO)(FRANKFURT:
DQN) is pleased to announce that on October 31, 2008, it completed
the acquisition of a 100% interest in the Sleeping Giant Mine,
including related milling facilities ("the Mine") and all mining
equipment, from IAMGOLD-Quebec Management Inc. ("IAMGOLD").
On December 11, 2007, Cadiscor made a cash payment of CAN
$300,000 and issued 600,000 common shares and 1,000,000 warrants to
IAMGOLD. Each warrant entitles the holder to purchase one common
share of Cadiscor for $0.70 up until December 31, 2010.
Cadiscor paid IAMGOLD an amount of CAN $5,000,000 through the
issuance of 4,285,715 common shares at $0.35/share for a total of
$1.5 million and a $3.5 million unsecured convertible debenture
bearing interest at 5%. The interest will be paid yearly, in
advance. This three-year debenture is convertible by IAMGOLD into
Cadiscor 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 buy back the debenture for cash at any time. Cadiscor
can 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 period.
The remaining terms of the original agreement (see December 11,
2007 press release) remain in effect.
Michel Bouchard stated: "This acquisition is an important step
in Cadiscor's corporate strategy to become a gold producer. Our
mine exploration program was very successful, as evidenced by the
16 months of reserves in the Mine and the identified additional
resources. It is a good start and we will continue to invest in
finding more ore. The gold zones are open and we will look into
once again deepening the mine shaft, as previous operators did
twice in the last twenty years. The 900 tpd Mill could also
eventually be used to mill ore from the Discovery project. Our
first priority is to redevelop the Sleeping Giant Mine, with a goal
of putting it back into production in 2009."
The Company is in discussions with several parties to secure
debt financing for Mine development. Cadiscor is confident of
obtaining the debt financing.
In a 43-101 report dated September 23, 2008, GENIVAR, an
independent consultant firm, recommended that Cadiscor start the
Mine development. The identified mineral reserves represent 16
months of future production and could generate a net operating
profit of $16 million at a gold price of CAN $850 per ounce. If all
resources are converted to reserves, they would represent 17
additional months of production. The annual production target is
52,000 ounces of gold. The estimated time required to restart the
Mill is six months after Mine development begins.
In November, Cadiscor will be busy hiring key personnel and
employees, completing the Mine development plan and securing the
financing.
Mr. Vincent Jourdain, P.Eng., Ph.D, is the qualified person as
defined by 43-101 Regulation and has over 20 years of experience in
mineral exploration. Mr. Jourdain has approved the content of this
press release.
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 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 Cadiscor
Resources Inc. Linda Plante Investor Relations 450-449-0066 /
1-877-440-0066 lplante@cadiscor.com www.cadiscor.com 314 Finance
Corp. Tasso Baras Investor Relations 604-738-3882
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