Cayden Resources Sells a Fraction of its Morelos Sur Gold Concession for $15.7 million
Vancouver, British Columbia – February 1st, 2013 – Cayden Resources Inc. (TSX.V: CYD) (“Cayden” or the “Company”) is pleased to announce the sale by Cayden’s Mexican subsidiary LC Mines, S.A. de C.V. (“LCM”) of two blocks of the eastern portion (15%) of its Morelos Sur Concession “Morelos East Concession” to Desarrollos Mineros San Luis, S.A. de C.V. (“DMSL”), Goldcorp’s subsidiary which owns and operates the adjacent Los Filos mine in Guerrero State, Mexico.
The sale represents a total of 2,492 hectares of Cayden’s 17,076 hectare concession for a total cash consideration of $15,744,000 USD plus a royalty to Cayden, of which 50% of the cash will be paid on or before February 28, 2013 and the balance to be paid once the subdivided titles of the Morelos East Concession are registered in the name of DMSL.
DMSL will acquire the portion subject to a reserved royalty in favour of LCM plus the existing government royalty (2.5%). The reserved royalty to LCM is a sliding scale royalty commencing after the first 250,000 ounces, starting at 0.75% and up to 1.75% when gold is over $2500/ounce.
Please see Figure A below or visit our website at www.caydenresources.com for a map defining the sale.
Ivan Bebek, Cayden Resources CEO commented on the transaction: “We are very pleased to have reached mutually acceptable terms with Goldcorp in this partial concession sale and look forward to maintaining an excellent relationship with them moving forward. The funds received from this transaction will be used to continue to advance exploration programs at both of our Mexican gold properties. The remainder of the Morelos Sur concession hosts the La Magnetita and Las Calles areas that continue to be the project’s high value exploration targets.