Approximately, 10,000 hectares out of the 30,000 hectares are subject to an underlying agreement with Rio Tinto Mining and Exploration Limited. The private company holds the exclusive right and option to acquire a one hundred percent interest from Rio Tinto subject to a 0.5% royalty and by incurring $450,000 in exploration expenditures over three years ending August 22, 2006 and by paying Rio Tinto US$500,000 on or before August 22, 2007. Subject to regulatory approval Cardero can earn a 100 % interest in all 30,000 hectares by assuming and performing all the commitments to Rio Tinto and by making the following payments.
This acquisition is part of an ongoing program to increase the Company's exposure in the Iron Oxide Copper Gold ("IOCG") belt that runs from Mexico to Chile and provides the Company with strategic locations within the IOCG belt of coastal Peru. Copper mineralization on the properties define a broad northwest trending belt and the copper occurs as secondary copper oxides with grab samples assaying up to 18% copper and up to 6 gms/tonne gold.
The Company is well financed with over $4 million in the treasury and well positioned to continue to explore its projects in Argentina, Peru and Mexico. Cardero Resource Corp. is currently listed on the TSX Venture Exchange and on the Frankfurt Stock Exchange (Symbol CR5).
On behald of the Board of Directors of
Cardero Resource Corp.
For further Information contact:
Henk Van Alphen, President
Phone 604.408.7488 / Fax 604.408.7499
The TSX Venture Exchange has not reviewed and does not accept responsibility for the adequacy of the content of this news release which has been prepared by management