|February 20, 2009|
Cadillac Closes $2.3 Million Financing
|Toronto, February 20, 2009 - Cadillac Ventures Inc. (CNSX-CDC) ("Cadillac" or the "Company") is pleased to announce that it has closed its previously announced non-brokered private placement financing with Trafigura Beheer, B.V. ("Trafigura"), an existing shareholder of the Company, for gross proceeds of approximately $2.3 million. Pursuant to the financing, Cadillac issued 6,542,056 units to Trafigura at $0.35 per unit. Each unit consists of one common share and one-half of one common share purchase warrant. Each whole warrant is exercisable, for 18 months, for one common share at $0.37 per share.|
The proceeds from the financing will be used for exploration expenditures and general working capital purposes. The securities issued under the financing will be subject to restrictions on resale for four months.
Pursuant to Multilateral Instrument 61-101 - Protection of Minority Security Holders in Special Transactions ("MI 61-101"), the financing constitutes a "related party transaction" for Cadillac as Trafigura, prior to closing, held 4,218,750 shares of Cadillac representing approximately 12% of Cadillac's pre-closing outstanding common shares. Post-closing, Trafigura holds 10,760,806 common shares of Cadillac (representing approximately 25.7% of Cadillac's outstanding shares) and warrants to acquire 3,271,028 additional common shares of Cadillac, which, if exercised, will result in Trafigura holding approximately 31% of Cadillac's outstanding common shares.
Cadillac is exempt from obtaining both a formal valuation and minority shareholder approval in connection with the financing because neither the fair market value of the common shares and warrants issued under the financing, nor the consideration for such securities, exceeded 25 per cent of the Company's market capitalization as calculated in accordance with MI 61-101.
Cadillac is a development focused exploration Company which, in addition to the MATSA Huelva Joint Venture, has two Canadian exploration projects, located in regions that have been historically active.
The New Alger project is a wholly owned, previously productive gold mine, located outside of Cadillac, Quebec. The Company has commenced a long term drill program designed to identify the scope of mineralization present on the Company's property along the Cadillac break, and outline new mineralization untouched by the historic, shallow, mining operations.
The Burnt Hill Project is 51% owned by the Company and located outside of Fredericton, New Brunswick. This operation was previously productive with a small scale pilot plant operating onsite recovering tungsten via photometric sorting. In recent drill campaigns the Company has received assay results demonstrating the previously disregarded presence of molybdenum and tin on the property. The objective of the drilling programs is the delineation of a 43-101 compliant reserve and resource, focusing in some part on the areas of historic production, in addition to the mineralization newly demonstrated at depth and along strike. The Company has also added significantly to the land position of this project, encompassing several other surface showing of tungsten, tin and molybdenum.
Cadillac is publicly traded on the CNSX under the symbol CDC.
For more information regarding Cadillac please visit our website at www.cadillacventures.com, or call Norman Brewster, President and Chief Executive Officer at 416-203-7722.
Forward Looking Statements
This news release may contain certain forward-looking statements under applicable securities laws. All statements, other than statements of historical fact, are forward looking. Forward-looking statements are frequently identified by such words as "may", "will", "plan", "expect", "believe", "anticipate", "estimate", "intend" and similar words referring to future events and results. Forward-looking statements are based on the current opinions and expectations of management. All forward-looking information is inherently uncertain and subject to a variety of assumptions, risks and uncertainties, including the speculative nature of mineral exploration and development, fluctuating commodity prices, the risks of obtaining necessary licences and permits and the availability of financing, as described in more detail in the Company's securities filings available at www.sedar.com. Actual events or results may differ materially from those projected in the forward-looking statements and the reader is cautioned against placing undue reliance thereon. Cadillac assumes no obligation to revise or update these forward-looking statements except as required by law. All dollar amounts are in Canadian dollars unless otherwise noted.
The CNSX does not accept responsibility for the adequacy or accuracy of this release.