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Abstract
Upon closing of the transaction with MGL, [Cadan] will retain a 20% free carried equity interest in PMC, which cannot be diluted until MGL has expended AUD$48 million in exploration and development costs on the Comval Project. Thereafter Cadan and MGL will be required to contribute to further costs in proportion to their interest or be diluted.
Robert Butchart, President and CEO of Cadan stated "MGL together with its financiers is a group with the demonstrated capability of raising the significant funds that are required to properly explore and develop both the porphyry copper and the gold stock work assets at Compostela Valley. This represents an excellent opportunity for Cadan to retain a substantial interest in the project without having to contribute funding until the project is significantly advanced. Cadan will be able to focus its resources and efforts to the advancement of Cadan's core asset, being the T'Boli gold-silver project and mine."