Cadan has signed a Aus$4 million agreement allowing Mining Group (MGL) to acquire an 80% share in its Comval copper-gold project in the Philippines’ Compostella Valley.

The agreement terms provide Mining Group with an 80% interest in Cadan’s Philippine-based affiliate Philco Mining Corporation (PMC) which holds the two exploration permits comprising the Comval project.

MGL must also spend Aus$48 million over a five year period for exploration activities including no less than 22,500 metres drilling on the project tenements in the first two years, a JORC-compliant mineral resource estimate and the completion of a scoping study and re-logging existing data and samples.

The agreement states the company must also commence a definitive feasibility study relating to Comval.

On closing of the agreement, Cadan will also grant MGL an option to acquire an 80% interest in the Batoto gold-silver project within nine months of the closing and for a $3 million fee and 5.2 million shares. The parties have agreed to prepare and execute a separate agreement in relation to the Batoto option.

Cadan announced a private placement in December 2011 of 16.3 million shares to raise almost $2.5 million for ongoing expenses at its Philippines minerals properties.

The company has several projects including the T’boli gold-silver mine at its 9000 hectare Comval property in the Compostella Valley in Mindanao Island’s south-east, which has long been recognized as one of the country’s most mineralized areas.

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