VANCOUVER, BRITISH COLUMBIA -- (Marketwire) -- 08/18/09 -- Cardero Resource Corp. ("Cardero" or the "Company") (TSX: CDU)(NYSE Amex: CDY)(FRANKFURT: CR5) is pleased to provide a progress report on the Pampa de Pongo sale agreement with Zibo Hongda Mining Co. Ltd., a subsidiary of Nanjinzhao Group Co. Ltd. Hongda has provided the Company full assurances it intends to complete the purchase of Pampa de Pongo and is diligently working to satisfy the conditions necessary to secure the bank guarantee for the remainder of the purchase price. Hongda is also continuing its aggressive engineering drill program at the site, which is expected to last through September 2009.
Hongda has informed the Company that, while it has made significant strides towards completing its purchase of Pampa de Pongo, it will be unable meet the August 19, 2009 deadline to provide an irrevocable letter of guarantee from a senior Chinese bank guaranteeing the payment of the balance of the purchase price. Hongda cites increased Chinese Central Government regulations and controls on foreign exchange - specifically, a new requirement for governmental approvals for overseas investments being secured prior to the granting of any bank guarantees for such investments.
Hongda also reports that it has encountered unforeseen delays in the incorporation of its Peruvian subsidiary company, to which title of the Pampa de Pongo project will be transferred. However, the Chinese governmental approval process has recently been completed, and the incorporation of the new subsidiary has now been finalized.
All other terms of the Pampa de Pongo sale agreement remain unchanged, with the balance of the purchase price of USD 88 million still being due on the earlier of 10 days after Hongda has received the necessary Chinese governmental approvals to proceed with the purchase and December 17, 2009.
"Hongda's ongoing work continues to provide strong assurance that they are actively moving toward securing the letter of guarantee and the completion of their purchase of the Pampa de Pongo deposit," stated Hank van Alphen, President of Cardero. "Despite Hongda having experienced some administrative difficulties with their approval process over the past months, their communication with Cardero is frequent and I am confident of their commitment to meet the December 17th deadline for payment of the balance."
Ongoing Engineering Work
Hongda is actively pursuing its engineering drill program on the Pampa de Pongo deposit, which provides data for ongoing mine engineering studies. This program is anticipated to continue until the end of September, 2009, when the current drilling permit expires. Hongda has advised Cardero that it is currently in discussion with several international consulting firms to advance a full feasibility study on the project.
