Cardero Resource Corp. (TSX:CDU,FWB:CRS) arranged a USD $5,700,000 private placement of senior secured notes to pay its debt to certain affiliates of Luxor Capital Group, LP. who are secured creditors of the Company. The Company anticipates closing of the financing today.

As quoted in the press release:

The Company has settled final documentation, and anticipates closing today, a private placement (“Placement”) of senior secured notes (“Notes”) in the aggregate principal amount of USD 5,700,000 with entities (“Lenders”) controlled by Mr. Robert C. Kopple of Los Angles, California. The net proceeds of the Notes will be used to pay the Indebtedness owing to Luxor, which repayment is anticipated to be completed immediately following completion of the Placement.

Cardero Resource Corp. Chief Executive Officer, Henk van Alphen, said:

A notice of default in a market as bad as this left us with very few options, but I am delighted that in a very short period of time we have been able to raise USD 5.7M, again securing the Carbon Creek asset for Cardero’s shareholders. The deal we have accepted from Mr. Kopple limits the potential total dilution to 83 million warrants. Mr. Kopple is not receiving any equity for providing us with the USD 5.7 million facility and he will have to buy any future interest in the Company. Mr. Kopple’s history of patient investments and long term strategic thinking made him an attractive partner at a time when the industry is at the absolute bottom of the cycle. The Company’s prefeasibility study points to an NPV8 of $633 million and an IRR of 24% for Carbon Creek. This is an asset that could bring real tangible value to the Cardero shareholders once metallurgical coal markets improve.

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