Vancouver — In order to fund a 2,000-metre drill program over the Caariaco copper project in Peru, Candente Resource (DNT-V) has reached an agreement to sell 3.5 million units priced at 20 each.
Each unit consists of one share and one warrant exercisable at 25 for the first year and 35 for the second. The $700,000 financing will be aimed at advancing the heap-leach potential of the project.
Previous drilling by Billiton, which recently merged with Australian-based BHP (BHP-N), outlined a potential of 100 million tonnes grading between 0.6% and 1.25% copper.
The mineralization is believed to be amenable to the low-cost SX-EW process. The leachable zone is part of a porphyry system called Caariaco Norte. It is open in all directions. Previous copper leach testing showed recoveries of 85-90%. The strip ratio is indicated to be less than 1-to-1.
Located in the northern part of the country, Caariaco lies approximately 25 km northwest of the La Granja porphyry copper deposit, which was recently acquired by Billiton.
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