Thursday, April 21, 2011

Cardero (CDY) Signs Definitive Agreement with Coalhunter

Cardero Resource (AMEX:CDY) and Coalhunter Mining announced they've signed a definitive arrangement agreement whereby Cardero will acquire all of the outstanding shares of Coalhunter.

Each Coalhunter shareholder holding shares as at the effective date of the Plan of Arrangement will receive 0.8 of a common share of the Company for each common share of Coalhunter held.

Cardero will gain control of a metalurgical coal deposit in northeast British Columbia in Canada. An estimated 120 million tons of coal are in the deposit at Coal Creek.

Coalhunter has a 75 percent joint venture interest in the Carbon Creek coal deposit.

Michael Hunter, president of Coalhunter said, "Our acquisition by Cardero, with its market exposure, liquidity, treasury and technical expertise, provides an excellent platform for Coalhunter to not only rapidly advance the Carbon Creek deposit but also to acquire additional coal assets.

"With the surging price of coal due to strong global demand and constrained supply, this is an optimal time to be developing coal assets."

Cardero was trading at $1.92, gaining $0.04, or 2.13 percent, as of 11:20 AM EDT.

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