Sherwood Announces Closing of Precious Metal Transaction
November 21 2008 - 2:22PM
Marketwired
Sherwood Copper Corporation (TSX VENTURE: SWC)(TSX VENTURE: SWC.DB)
is pleased to announce, further to its news release of November 7,
2008, the closing of the transaction with Silverstone Resources
Corp. (TSX VENTURE: SST) whereby Silverstone will purchase, subject
to certain terms and conditions, all of the payable gold and silver
from the Minto Mine in the Yukon, over the life of the mine
starting December 1, 2008.
Transaction Details
Silverstone will purchase all of the payable gold and silver
from the Minto Mine and, in exchange, Sherwood received an up-front
payment from Silverstone of US$37.5 million, plus a further payment
of the lesser of (a) US$300 per ounce of gold and US$3.90 per ounce
of silver (subject to a 1% inflationary adjustment after three
years and each year thereafter) and (b) the prevailing market price
of gold and silver quoted on the London Bullion Market Association,
for each ounce delivered. If production from the Minto Mine exceeds
50,000 oz of payable gold in the first two years of the agreement
or 30,000 oz of payable gold per year thereafter, Silverstone will
be entitled to purchase only 50% of the amount in excess of those
thresholds. Kutcho Copper Corp., Sherwood's wholly owned subsidiary
that owns the Kutcho copper-zinc-silver-gold project in British
Columbia, has also granted Silverstone a right of first refusal to
purchase any gold and/or silver streams from the Kutcho project,
should Kutcho Copper elect to sell such, on terms and conditions to
be agreed by mutual consent.
Sherwood, and its wholly-owned subsidiaries, Minto Explorations
Ltd. and Kutcho Copper Corp., have now signed definitive purchase
agreements with Silverstone with respect to the above described
transaction.
Additional Information
Additional information on Sherwood and its Minto Mine can be
obtained on Sherwood's website at
http://www.sherwoodcopper.com.
On behalf of the board of directors
SHERWOOD COPPER CORPORATION
Stephen P. Quin, President & CEO
This document may contain "forward-looking statements" within
the meaning of Canadian securities legislation and the United
States Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made as of the date of this document
and the Company does not intend, and does not assume any
obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future
performance and reflect management's expectations or beliefs
regarding future events and include, but are not limited to,
statements with respect to the completion of future transactions,
the estimation of mineral reserves and resources, the realization
of mineral reserve estimates, the timing and amount of estimated
future production, costs of production, capital expenditures,
success of mining operations, environmental risks, unanticipated
reclamation expenses, title disputes or claims and limitations on
insurance coverage. In certain cases, forward-looking statements
can be identified by the use of words such as "plans", "expects" or
"does not expect", "is expected", "budget", "scheduled",
"estimates", "forecasts", "intends", "anticipates" or "does not
anticipate", or "believes", or variations of such words and phrases
or statements that certain actions, events or results "may",
"could", "would", "might" or "will be taken", "occur" or "be
achieved" or the negative of these terms or comparable terminology.
By their very nature forward-looking statements involve known and
unknown risks, uncertainties and other factors which may cause the
actual results, performance or achievements of the Company to be
materially different from any future results, performance or
achievements expressed or implied by the forward-looking
statements. Such factors include, among others, success in
obtaining requisite approvals and closing for the combination with
Capstone Mining, risks related to actual results of current
exploration activities; changes in project parameters as plans
continue to be refined; future prices of resources; possible
variations in ore reserves, grade or recovery rates; accidents,
labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion
of development or construction activities; as well as those factors
detailed from time to time in the Company's interim and annual
financial statements and management's discussion and analysis of
those statements, all of which are filed and available for review
on SEDAR at www.sedar.com. Although the Company has attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. There can be no assurance that forward-looking statements
will prove to be accurate, as actual results and future events
could differ materially from those anticipated in such
statements.
Accordingly, readers should not place undue reliance on
forward-looking statements.
The TSX Venture Exchange has not reviewed and does not accept
responsibility for the adequacy or accuracy of this press
release.
Contacts: Sherwood Copper Corporation Stephen P. Quin Investor
Contact (604) 687-7545 Sherwood Copper Corporation Chris Curran
Investor Contact (604) 687-7545 (604) 689-5041 (FAX) Website:
www.sherwoodcopper.com
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