Vancouver, British Columbia - Cardero Resource Corp. ("Cardero" or the "Company") (TSXV: CDU, Frankfurt: CR5) reports that it has closed a first tranche of a non-brokered private placement as previously announced on June 7, 2018 and June 12, 2018 (the "Placement"). A total of 2,692,714 units (the "Units") were issued on June 13, 2018, under the Placement at a price of $0.14 per Unit for gross proceeds of $376,980. Each Unit consists of one common share in the capital of the Company (each, a "Share") and one‑half of one common share purchase warrant, with each whole warrant (each, a "Warrant") entitling the holder to acquire one additional Share at a price of $0.21 per Share for a period of up to two years, expiring on June 13, 2020. In the event that the closing price of the Shares on the TSX Venture Exchange (the "TSXV") is at least $0.30 per Share for a period of ten consecutive trading days commencing four months and one day after the closing of the Placement, the Company may accelerate the expiry date of the Warrants by providing notice to the shareholders thereof and, in such case, the Warrants will expire on the 30th day after the date on which such notice is given by the Company.
Insider participation included KF Business Ventures, LP (1,785,714 Units), Deepak Malhotra (100,000 Units) and Robert van Doorn (357,000 Units), which constitute "related party transactions" as such term is defined under Multilateral Instrument 61-101 – Protection of Minority Security Holders in Special Transactions ("MI 61-101″). The Company is relying on the exemptions from the formal valuation and minority approval requirements under MI 61- 101. The Company is exempt from the formal valuation and minority approval requirements of MI 61-101 in reliance on sections 5.5(a) and 5.7(1)(a) of MI 61-101 as the fair market value of the transaction, insofar as it involves interested parties, is not more than the 25% of the Company's market capitalization.
All securities issued by the Company pursuant to the Placement will have a four month and one day hold period in Canada ending on September 19, 2018. In connection with the Placement the Company paid cash finder's fees of $2,940.00, 7% of proceeds raised, to PI Financial Corp.
The proceeds will be used to advance the Company's Zonia copper project in Arizona and for general working capital.
This news release does not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities, in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of such jurisdiction. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the "U.S. Securities Act"), or any state securities laws and may not be offered or sold within the United States or to, or for the account or benefit of, "U.S. persons," as such term is defined in Regulation S under the U.S. Securities Act, unless an exemption from such registration is available.
Grant of Stock Options
The Company also announces that, pursuant to its Stock Option Plan, it has granted incentive stock options to a consultant allowing them to purchase up to an aggregate of 180,000 common shares in the capital stock of the Company. The options are exercisable on or before June 15, 2020 at a price of CAD 0.14.
ABOUT CARDERO RESOURCE CORP.
The common shares of the Company are currently listed on the TSX Venture (symbol CDU) and the Frankfurt Stock Exchange (symbol CR5). For further details on the Company readers are referred to the Company's web site (www.cardero.com), Canadian regulatory filings on SEDAR at www.sedar.com and United States regulatory filings on EDGAR at www.sec.gov
On Behalf of the Board of Directors of
CARDERO RESOURCE CORP.
"Stuart Ross" (signed)
Stuart Ross, CEO and President
604 408 7488 Ext. 3883
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Cautionary Note Regarding Forward-Looking Statements
Forward Looking Information: This news release includes certain information that may be deemed "forward looking information". Forward-looking information can generally be identified by the use of forward-looking terminology such as "may", "will", "expect", "intend", "estimate", "anticipate", "believe", "continue", "plans" or similar terminology. All information in this release, other than information of historical facts, including, without limitation, the availability of financing to the Company are forward-looking information that involve various risks and uncertainties. Although the Company believes that the expectations expressed in such forward-looking information are based on reasonable assumptions, such expectations are not guarantees of future performance and actual results or developments may differ materially from those in the forward-looking information. Forward-looking information is based on a number of material factors and assumptions. Factors that could cause actual results to differ materially from the forward-looking information include changes in project parameters as plans continue to be refined, future metal prices, availability of capital and financing on acceptable terms, general economic, market or business conditions, regulatory changes, delays in receiving approvals, and other risks detailed herein and from time to time in the filings made by the Company with securities regulatory authorities in Canada. Mineral exploration and development of mines is an inherently risky business. Accordingly, actual events may differ materially from those projected in the forward-looking information. For more information on the Company and the risks and challenges of our business, investors should review our continuous disclosure filings which are available at www.sedar.com. Readers are cautioned not to place undue reliance on forward-looking information. The Company does not undertake to update any forward looking information, except in accordance with applicable securities laws.
The TSX Venture Exchange has neither approved nor disapproved of the contents of this press release. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this press release.