Cardero Resource Announces Restructuring Plan, Acquires Copper Project

Cardero Resource (TSX:CDU) announced a restructuring plan that includes the acquisition of the Zonia copper oxide project in Arizona. Shares of Cardero rose 33 percent on the news to $0.02.
As quoted in the press release:

Upon approval by shareholders and the TSX, the Plan will result in the restructuring of US$8.5 million of the Company’s debt, sale of the Company’s wholly-owned subsidiary Cardero Coal Ltd. (“Cardero Coal”), retention of a participation right (the “Retained Right”) with respect to the Carbon Creek metallurgical coal project, acquisition of an advanced copper oxide project in Arizona, USA, and consolidation of the Company’s stock at a rate of 1 new share for 10 old shares (the “Consolidation”). Post-Consolidation, a concurrent non-brokered $1.5 million private placement will be completed at $0.15 per share.

Cardero president and CEO, Henk van Alphen, said:

We are delighted to announce a comprehensive restructuring plan that we believe will provide a platform on which to build a copper exploration and development company. Copper is a commodity for which demand is expected to continue to expand as industrialization continues at pace across the globe. Large copper projects typically have long-lead times to development and medium-scale projects like Zonia create the opportunity for profitable production when copper prices start to move sharply upward.

Click here to read the full press release.