VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 03/18/09 -- Cardero Resource Corp. ("Cardero" or the "Company") (TSX: CDU)(NYSE Alternext US: CDY)(FRANKFURT: CR5) announces that following recent discussions with Nanjinzhao Group Co. Ltd., the Company has granted a request for a limited extension to the USD 10 million deposit payment due March 17th, 2009.
Nanjinzhao requested the extension due to minor delays encountered with finalizing approvals from departments of the Chinese Central Government. To date, Nanjinzhao has informed the Company it has received approvals from City, District and Provincial levels and anticipates final Federal-level approval very shortly. The timeframe of Nanjinzhao's received approvals to date is as follows:
1. Linzi District (Feb 15, 2009)
2. Zibo City (Feb 25, 2009)
3. Shandong Province (Mar 01, 2009)
Under the binding agreement, the USD 10 million deposit is now due at the earlier of May 17, 2009 or within five (5) business days after Nanjinzhao receives Federal Approvals.
Mr. Duan Lianwen, Chairman of Nanjinzhao Group stated, "We are firmly committed to completing the purchase of the world-class Pampa de Pongo iron ore deposit, as per our agreement, as soon as we receive the necessary Chinese Central Government approvals. This cooperation of Cardero is greatly appreciated by Nanjinzhao and demonstrates the excellent relationship established between our two groups. While we finalize the approval process in China, we are completing all the necessary groundwork for the long-term development and operation of Pampa de Pongo by performing advanced project engineering studies, meeting with local and federal Peruvian government officials and establishing the necessary financial and legal relationships in Peru."
"Progress is well underway in finalizing the Pampa de Pongo sale agreement and we remain highly confident the Nanjinzhao Group will conclude its purchase of this world-class iron ore deposit in a timely manner," said Hendrik van Alphen, Cardero's President and CEO.
Additionally, a delegation of 17 Chinese officials is arriving in Peru in the forthcoming week and will hold meetings with various government officials to continue to develop stronger ties with the local communities and to review mining development plans for the Pampa de Pongo iron deposit.
Pampa de Pongo Sale Agreement
Following signing of the USD 200 million purchase agreement among Nanjinzhao Group Co. Ltd., the Company and Cardero Hierro Peru S.A.C. on October 24, 2008 (News Release NR08-26), Rio Tinto Mining and Exploration S.A.C. had the right, for 45 days, to elect to acquire Pampa de Pongo on the same terms as agreed by Nanjinzhao. On December 17, 2008, Rio Tinto gave notice that it would not be exercising such right.
