TORONTO (miningweekly.com) – Two Canadian juniors, Candente Resource Corp and Canaco Gold, have agreed to combine their precious metals assets in Latin America into a new company, which will be called Candente Gold.

The new firm will hold the El Oro gold/silver property, in Mexico, which is currently jointly owned by the two companies, as well as Candente's gold/silver properties in Peru.

Candente Gold will issue five-million shares to both Candente and Canaco, as well as a promissory note for future repayment of the money each firm has spent on El Oro (C$1,3-million each), which will be paid in cash or shares.

For the Peruvian gold silver properties, Candente will receive  another ten-million shares in Candente Gold when the asset is transferred to the new company, and an additional ten-million shares once a minimum of $5-million has been spent by Candente Gold on these properties.

Candente Gold will list on either the TSX or the TSX Venture Exchange, as well as the BVL (Bolsa Valores Lima), through a reorganisation and will raise funds “in accordance with market conditions”.

Candente Resources then plans to change its name to Candente Copper, and will continue to explore for copper and other base metals in Peru.

The company said on Tuesday that it intends to initially retain a position of between 10% and 15% in Candente Gold, and distribute the remaining common shares it receives in Candente Gold to its current shareholders on a pro rata basis.

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