Cadan Resources is continuing to progress an internal strategic review and has completed a number of the short term objectives. The review includes examining the commencement of exploratory work in and around the T’Boli Gold Project.
The company has engaged a geological consultant to assist in research, compilation, digitization, presentation and interpretation of existing exploration data from the TMC and Batoto project areas. Cadan will receive a report including a short-term budget for commencement of the T’Boli exploratory work.
As part of the geological review Cadan will complete a structural geological interpretation and model of the existing T’Boli mine, which will enhance the understanding of the geological geometry and assist with more efficient development and exploration of the resource.
The Cadan team was nearing completion of the strategic review and was on track to complete this by the end of July 2014. Key components include:
- Reviewing the remaining debt with the intention of extending the maturity date;
- Other exploration assets in addition to the T’Boli mine, defining priorities and strategy going forward including capital requirements;
- Review management processes at both the corporate and operation level;
- Investigate all contractual and financial agreements; and
- Conduct shareholder feedback.
At T’Boli processing of the medium grade stockpile has commenced while excavation of a small tailing storage facility with a capacity of approximately 25,000 tonnes is nearing completion on the newly acquired area adjacent to the existing tailings facility.
The mine has been temporarily closed and flooded in order to reduce holding costs and prevent illegal small-scale miners accessing the workings while the strategic review is being undertaken. Further reductions in manpower and costs have occurred at the T’Boli operation.
The Cadan Board understands that the last 2 years have been difficult for shareholders, and has acted accordingly in making changes. Going forward, it is a clear objective of the Board to rebuild and develop the full potential of its exciting suite of assets. Once the Board has completed the strategic review, the objective is to ensure Cadan is appropriately resourced to take full advantage and extract realistic value from the assets.
Meantime, the due date for repayment of loans to Mighty River International Ltd under the current facility agreement has been extended to December 31, 2015 for all tranches and without changes to other terms in the agreement. Discussions regarding term extensions are continuing with holders of Can$3.7 million of convertible loans that matured on June 1, 2014. Cadan is negotiating with note holders to replace the existing notes with new notes with a later maturity date.