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Cadillac Ventures research and analysis

Contributed by eResearch

By Bob Weir

Cadillac Ventures Inc. has closed the second and final tranche of its private placement financing, for gross proceeds of about $804,400. The first and second tranches together totalled $3.3 million in gross proceeds .

On the closing of the second tranche, Urion Mining International B.V., an existing shareholder of the Company and an indirect wholly-owned subsidiary of Trafigura Beheer, B.V., was issued 3,830,410 units of Cadillac at $0.21 per unit.

Union’s subscription allowed it to maintain its approximate 25% equity interest in Cadillac, through the exercise of its pre-emptive right under a pre-existing agreement between Cadillac and Urion. In total, Cadillac issued 3,830,410 units and 11,039,196 flow-through units under the offering.

Each unit comprises one common share and one-half of one common share purchase warrant. A whole warrant entitles the holder to purchase one common share of Cadillac at $0.35 for a period of 24 months following the close.

Cadillac intends to use the some of the net proceeds from the sale of the units towards a preliminary economic assessment (PEA) on the Thierry property in Ontario by early 2012.

THE COMPANY

Cadillac Ventures Inc. is an active junior mining exploration company. It also boasts a strategic relationship with its lead shareholder, Trafigura Beheer B.V., one of the world’s largest international commodity traders. Based in Toronto, Cadillac is focused on investigating, exploring and developing mineral properties with expected high potential. Among the Company’s projects are the following:

The Thierry property, near Pickle Lake, Ontario, containing the past-producing Thierry Mine and the K1-1 deposit, both copper-nickel;

The Pickle Gold property in Ontario was recently sold to Newcastle Minerals Ltd., with the Company retaining a 2% NSR.

The joint venture with Minas de Aguas Tenidas, S.A.U. (“MATSA”, which is 100%-owned by Iberian Minerals Corp.) in Spain. Cadillac Ventures can earn 90% in several properties that possibly host massive sulphide concentrations;

The Burnt Hill property in New Brunswick: tungsten oxide, molybdenum disulphide, and tin dioxide (51%-owned by Cadillac Ventures and 49% by Noront Resources)

The New Alger property in Quebec: gold and silver; joint ventured to Renforth Resources Inc.

RECOMMENDATION AND TARGET PRICE

We continue to recommend the shares of Cadillac Ventures Inc. as a Speculative Buy for risk-tolerant investors, and we are maintaining our 12-month Target Price of $0.52 per share.

In the current volatile market environment, there is little investor appetite for junior mining exploration companies. However, the stock market will reward those entities that achieve strategic performance milestones.

Cadillac Ventures has several important milestones that could be realized over the next 6-9 months. If so, the shares should perform positively and give expectation to reaching our Target Price.

eResearch Analysts:
Yuri Belinsky, B.A., M.A.
Bob Weir, B.Sc., B. Comm, CFA