Cardero Secures 49.5% Interest in Coalhunter Mining Corporation Through Participation in Equity Financing

Thursday, 22 July 2010 12:21

Cardero Resource Corp. ("Cardero" or the "Company") -- (TSX: CDU, NYSE-A: CDY, Frankfurt: CR5) is pleased to announce that it has acquired approximately 49.5% of the common shares of Coalhunter Mining Corporation ("Coalhunter") through a private placement. Coalhunter is a private British Columbia company which has the right to acquire a majority interest in the Carbon Creek coalfield in north-eastern British Columbia.

Investment Details

Under the terms of the subscription agreement between Coalhunter and Cardero, Cardero has acquired 12 million common shares of Coalhunter at a price of CAD 0.30 per share for a total investment of CAD 3,600,000. Through participation in this financing, Cardero has acquired a 49.57% interest in Coalhunter. Cardero has an ongoing right to maintain its percentage interest in Coalhunter so long as it holds at least a 10% interest and, in certain circumstances, the right to increase its position to 51%. Upon the completion of the private placement, Keith Henderson, Cardero's Vice-President, Exploration was appointed as a director of Coalhunter. Should Cardero increase its interest to 51%, it would be entitled to nominate an additional director.

Upon closing the private placement Coalhunter President Michael Hunter commented that, "...We are very pleased to have secured the interest and involvement of Cardero Resource Corp. It's a key step in our program to unlock the value of the Carbon Creek asset."

Cardero Strategy

Acquisition of this interest in Coalhunter is in line with Cardero's focus on bulk commodities and allows the Company to leverage significant value out of its considerable cash funds available for acquisitions and investments.

"Since completing the 100% cash sale of Pampa de Pongo in January 2010, the Company has been seeking quality investment opportunities" stated Henk van Alphen, Cardero's President & CEO. "Technical staff and consultants have completed due diligence on more than 15 projects or companies and have placed bids or made offers on several of them. The significant challenge of finding the right project at the right price in the current market environment has become apparent to everyone involved."

"This investment in Coalhunter is the second of several such investments that Cardero has completed or is currently negotiating" continued van Alphen. "Investments such as that in Coalhunter, where Cardero can be positioned at the earliest stage, represent tremendous potential value for Cardero shareholders."

ABOUT COALHUNTER MINING CORPORATION.

Coalhunter is a private British Columbia company which has successfully negotiated a joint venture to explore and, if warranted, develop certain coal deposits in the Carbon Creek coal field located in British Columbia's northeast coalfield. The joint venture property consists of a lease of freehold coal and certain coal licenses issued by the British Colombia government. Coalhunter will hold a 75% interest in the joint venture and its co-venturer will hold a 25% carried interest. Coalhunter will be required to fund all exploration, development and mining costs, and the co-venturer will receive 25% of the net proceeds (after recovery by Coalhunter of its capital expenditures and ongoing operating costs). Coalhunter has commissioned NORWEST Corp to complete a NI 43-101 report on the properties, which will include all necessary details of Coalhunter's interest in the Carbon Creek deposit as well as an independent assessment of the extensive historical data relating to the deposit. Between 1970 and 1981, Utah Mines Ltd. completed 296 rotary and diamond drill holes totalling nearly 26,000 metres and excavated more than 7,000 tonnes of coal for quality analysis.

ABOUT CARDERO RESOURCE CORP.

Cardero's focus through 2010 is to realise the considerable value it believes is locked in its remaining iron ore assets in the Marcona District of southern Peru, and in Minnesota, USA while continuing to progress its base and precious metal exploration projects in Argentina and Mexico, and aggressively seek out and potentially acquire new advanced stage projects. The common shares of the Company are currently listed on the Toronto Stock Exchange (symbol CDU), the NYSE-Amex (symbol CDY) and the Frankfurt Stock Exchange (symbol CR5).

Bookmark this page!