Cardero Resource Corp. will seek shareholder approval for an $8.5 million debt restructuring plan, which includes the sale of the company’s Cardero Coal subsidiary and the acquisition of the Zonia copper oxide project in Arizona, USA, and 10:1 consolidation of the company’s stock.
“We believe the plan will provide a platform on which to build a copper exploration and development company,” said Henk van Alphen, Cardero’s president and CEO. “Copper is a commodity for which demand is expected to continue to expand as industrialization continues at pace across the globe. Large copper projects typically have long lead times to development, and medium-scale projects like Zonia create the opportunity for profitable production when copper prices start to move sharply upward.”
“We are completing due diligence on a number of other copper opportunities and we intend to make other acquisitions, aiming to build a portfolio of copper assets at various stages of development,” van Alphen said.
The Zonia copper oxide project has been held under private ownership for almost 100 years and has undergone comprehensive exploration, metallurgical studies and mine development planning. The company has completed due diligence with support from JDS Energy and Mining. Cardero will produce a NI 43-101 Technical Report in due time.