The funds are being raised through a private placement with the Lind Global Fund II, LP, and is to comprise an initial C$3 million investment, followed by C$7 million of additional investments upon mutual agreement.
For the initial C$3 million, Candente is to issue Lind convertible security with a value of C$3.6 million and a 24-month maturity date.
The company will concurrently issue warrants that would allow the purchase of up to 6.25 million shares at a price of C$0.30 per share for a period of 48 months, which, if exercised, would result in an additional C$1.875 million.
Candente's share price on the Toronto Stock Exchange was quoted as C$0.23 on March 24, having risen 2% day-on-day.
"These new funds will allow us to continue to de-risk the Canariaco project by advancing engineering and environmental studies, as well as community relations and projects,' the company's president and CEO Joanna Freeze said.
Freeze said that all engineering work to date will be reviewed and that the company has the goal of starting feasibility and detailed environmental assessment studies on Canariaco Norte. Candente will also apply for permits to continue drilling at Canariaco Sur and exploration drilling at Quebrada Verde.
"This is the second financing provided to the company by Lind, as they completed 50% of our US$1.1 million private placement in August 2021. [That placement] provided the funding for the recently completed 2022 preliminary economic assessment," she said.
In February, Candente released its PEA for the project. It outlined an initial 40,000 tonnes per day operation with subsequent expansion to 80,000t/d to produce an annual average of 78,543t copper, 31,395 ounces gold and 703,588oz silver for 28 years.
The company said Canariaco had an after-tax net present value of US$1 billion at an 8% discount rate, and an internal rate of return of 16.3% following $1.04 billion initial capital investment using a copper price of $3.50/lb, $1,650/oz gold, and $21.50/oz silver.
The term sheet between Candente and Lind is non-binding.
Candente had a market capitalisation of C$61.75 million.