SANTIAGO, Chile, May 30, 2013 /PRNewswire/ -- Swingplane Ventures,
Inc. (OTC-BB: SWVI) (the "Company" or "Swingplane") brings you a
message from the Company's President who wishes to update the
Company's status in regard to the Algarrobo mining project (the
"Property")
http://swingplaneventuresinc.com/projects/algarrobo-property-project,
and corporate matters.
CURRENT STATUS
The last months since my appointment as President have been both
an exciting and difficult time for the Company. We received
positive information came from our consulting geologist and the
current property owner in regard to the status and opportunities to
explore and exploit the Algarrobo property. As you are
all aware, the contract with the Optionors and Mid Americas Corp.,
the Company's now wholly owned subsidiary, had substantive payment
requirements under the Option Agreement to be met in a relatively
short time. The volatility of the stock did not help
with fund raising and the Company has had difficulty in getting the
required reports on a timely enough basis to be able to meet the
cash commitments of the Option Agreement. As a result, as
disclosed in our recent filings, the Optionors served a default
notice on the Company on May 13,
2013, in the middle of the Company negotiating with
potential funders. Again not a positive step
forward. The notice of default allows for 30 days to
cure. This cure was simply not possible as it required
funding of approximately $8.6 million
in trust. However, during that time the Company was able to
get expressions of interest from debt funders, equity funders and
joint venture partners. Due to the short time frame and the
required data reports for the debt funding, the Company found
itself with no time or funds to be able to get a reserve report and
a plan of mining operations to present and thus has had to look to
potential joint venture offers. The Company received two
offers for potential joint ventures. Both of the offers required
that the Option Agreement be renegotiated and both required a site
visit.
On May 23, 2013, I took a group to
Chile to meet with the Optionors,
which included myself, legal counsel and a longtime associate of
the Optionors. This was my first visit to the Property
and to Chile. While there I had the opportunity to meet
with our Chilean legal counsel to get more familiar with the legal
issues that we must be aware of doing business in Chile and the issues of property tax payments,
titles. I also met with Suelo
Firme, a firm that had visited the property to review its
potential during April, 2013 in regard to putting a plan of
operation together for a small production
operation. Meetings were held with Amec to review
their pending report on the Property and to find out what
additional information is required to finish and present the
report. Finally, our group travelled to Caldera to meet with
the Optionors and enter into discussions as to how to best address
our problems and work together productively to get the project back
on track. During that time I travelled the
Property extensively with the Optionors and had a good firsthand
view of what makes the Property as exciting an opportunity as we
had envisioned. On this trip we obtained a large
amount of information that we are still processing
internally. The good news is however, that the Company was
able to negotiate an extension on the notice of default to give
potential joint venture partners time to visit the Property and
present their offers to fund and develop the Property in
conjunction with us and the Optionors. The Optionors have presented
an agreement whereby the Company has the rights to renegotiate the
Option Agreement and we will initially bring potential joint
venture partners and funders on June
7th, for as much time as necessary. This is done
with a view to a renegotiation of new terms, if the joint venture
consultants find the Property has the merit that we believe it
has. Further, the Optionors have granted the extension
of default to July 1, 2013 to allow
time to undertake a new plan, subject to the Company paying
approximately $55,000 for the 2013
taxes by June 15, 2013.
The Company will arrange for the funds for the taxes to be in
trust with their Chilean legal counsel this week. The Company must
now aggressively seek additional funding for operations and intends
to explore all opportunities, including debt or equity financing,
loans against pending production, and any other opportunities that
may arise, on the assumption that the Company will be able to
renegotiate and bring in a developing joint venture partner.
Any funds raised will be in trust subject to being able to conclude
a new agreement with the Optionors.
I am very pleased to have been able to work with the Optionors
in this mutually beneficial manner and I hope to have a new
agreement during our next trip, which will ensure the Company
maintains an interest in the Property and has an opportunity to
build value for its stockholders, both past and future.
The Property is a vast property with many different areas available
for exploration and exploitation and we believe it presents a good
opportunity to any potential partner or funder.
I wish to thank those shareholders that have contacted me with
words of encouragement and support and I promise to do everything
in my power to get this project underway for the Company. I
did not have the opportunity on this trip, to meet with our other
director, Mr. Lindorfer due to a death in his family but I expect
to meet with him on the next visit and to be speaking with him as
he returns to Chile at the
beginning of next week.
Further updates will be provided as information becomes
available.
Carlos De la Torre
President and Director
For more information please visit our web site at:
www.swingplaneventuresinc.com
Or contact:
Investor relations: 1-800-253-1692
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THIS NEWS RELEASE CONTAINS ""FORWARD-LOOKING STATEMENTS"", AS
THAT TERM IS DEFINED IN SECTION 27A OF THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, AND SECTION 21E OF THE UNITED
STATES SECURITIES EXCHANGE ACT OF 1934, AS AMENDED.
STATEMENTS IN THIS NEWS RELEASE, WHICH ARE NOT PURELY HISTORICAL,
ARE FORWARD-LOOKING STATEMENTS AND INCLUDE ANY STATEMENTS REGARDING
BELIEFS, PLANS, EXPECTATIONS OR INTENTIONS REGARDING THE
FUTURE.
EXCEPT FOR THE HISTORICAL INFORMATION PRESENTED HEREIN, MATTERS
DISCUSSED IN THIS NEWS RELEASE CONTAIN FORWARD-LOOKING STATEMENTS
THAT ARE SUBJECT TO CERTAIN RISKS AND UNCERTAINTIES THAT COULD
CAUSE ACTUAL RESULTS TO DIFFER MATERIALLY FROM ANY FUTURE RESULTS,
PERFORMANCE OR ACHIEVEMENTS EXPRESSED OR IMPLIED BY SUCH
STATEMENTS. STATEMENTS THAT ARE NOT HISTORICAL FACTS, INCLUDING
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WORDS AS "ESTIMATE"", """ANTICIPATE"", ""BELIEVE"", ""PLAN"" OR
""EXPECT"" OR SIMILAR STATEMENTS ARE FORWARD-LOOKING STATEMENTS.
FORWARD-LOOKING STATEMENTS CONTAINED IN THIS NEWS RELEASE INCLUDE
STATEMENTS RELATING TO THE COMPANY''S PLANS TO ENTER INTO A MINING
OPTION AGREEMENT WITHIN THE NEXT FORTY-FIVE DAYS. RISKS AND
UNCERTAINTIES FOR THE COMPANY INCLUDE, BUT ARE NOT LIMITED TO, THE
RISKS ASSOCIATED WITH MINERAL EXPLORATION AND FUNDING AS WELL AS
THE RISKS SHOWN IN THE COMPANY'S MOST RECENT ANNUAL AND QUARTERLY
REPORTS ON FORM 10-K AND FORM 10-Q, RESPECTIVELY, AND FROM
TIME-TO-TIME IN OTHER PUBLICLY AVAILABLE INFORMATION REGARDING THE
COMPANY. OTHER RISKS INCLUDE RISKS ASSOCIATED WITH THE REGULATORY
APPROVAL PROCESS, COMPETITIVE COMPANIES, FUTURE CAPITAL
REQUIREMENTS AND THE COMPANY''S ABILITY AND LEVEL OF SUPPORT FOR
ITS EXPLORATION AND DEVELOPMENT ACTIVITIES. THERE CAN BE NO
ASSURANCE THAT THE COMPANY''S EXPLORATION EFFORTS WILL SUCCEED AND
THE COMPANY WILL ULTIMATELY ACHIEVE COMMERCIAL SUCCESS. THESE
FORWARD-LOOKING STATEMENTS ARE MADE AS OF THE DATE OF THIS NEWS
RELEASE, AND THE COMPANY ASSUMES NO OBLIGATION TO UPDATE THE
FORWARD-LOOKING STATEMENTS, OR TO UPDATE THE REASONS WHY ACTUAL
RESULTS COULD DIFFER FROM THOSE PROJECTED IN THE FORWARD-LOOKING
STATEMENTS. ALTHOUGH THE COMPANY BELIEVES THAT THE BELIEFS, PLANS,
EXPECTATIONS AND INTENTIONS CONTAINED IN THIS NEWS RELEASE ARE
REASONABLE, THERE CAN BE NO ASSURANCE THOSE BELIEFS, PLANS,
EXPECTATIONS OR INTENTIONS WILL PROVE TO BE ACCURATE. INVESTORS
SHOULD CONSIDER ALL OF THE INFORMATION SET FORTH HEREIN AND SHOULD
ALSO REFER TO THE RISK FACTORS DISCLOSED IN THE COMPANY'S PERIODIC
REPORTS FILED FROM TIME-TO-TIME WITH THE
UNITED STATES SECURITIES AND EXCHANGE COMMISSION.
THIS NEWS RELEASE HAS BEEN PREPARED BY MANAGEMENT OF THE COMPANY
WHO TAKES FULL RESPONSIBILITY FOR ITS CONTENTS. NO SECURITIES
REGULATORY AUTHORITY HAS APPROVED OR DISAPPROVED OF THE CONTENTS OF
THIS NEWS RELEASE. THIS NEWS RELEASE SHALL NOT CONSTITUTE AN OFFER
TO SELL OR THE SOLICITATION OF AN OFFER TO BUY NOR SHALLTHERE BE
ANY SALE OF THESE SECURITIES IN ANY JURISDICTION IN WHICH SUCH
OFFER, SOLICITATION OR SALE WOULD BE UNLAWFUL PRIOR TO REGISTRATION
OR QUALIFICATION UNDER THE SECURITIES LAWS OF ANY SUCH
JURISDICTION.
SOURCE Swingplane Ventures, Inc.