SUNWARD COMPLETES ACQUISITION OF THE MURINDO PROJECT

TSX-V: SWD

VANCOUVER, April 8 /CNW/ - Further to its Feb. 23, 2011 news release, Sunward Resources Ltd. ("Sunward" or "the Company") (TSXV: SWD) has completed the definitive documentation and closed the acquisition of all of the issued and outstanding shares of La Muriel Mining Corp. ("La Muriel"), the sole owner of the Murindo copper-gold porphyry project ("Murindo Project") in Colombia. In consideration for the shares of La Muriel, Sunward made a payment of US$1-million to the vendors and undertook to finance all activities related to securing access and carrying out certain work in connection with the project.  Access to the property is currently restricted due to an order of the Constitutional Court of Colombia requiring various Colombian governmental departments to engage in further consultation with local and indigenous groups prior to the undertaking of any exploration and development activities. Upon achieving the legal and physical ability to gain reasonable access to the Murindo project, Sunward is required to issue up to six million shares of the Company, net of the number of shares calculated by dividing the total amount of the funds expended by Sunward by the seven-day average trading price of Sunward shares immediately preceding the day when the Sunward board approves the issuance of the shares.

Notwithstanding these access issues, in November, 2010, Rio Tinto Mining and Exploration Ltd. entered into an agreement with La Muriel under which Rio Tinto may acquire a 70-per-cent interest in the project for payment of $60-million (U.S.) in cash (for more details on this agreement, please refer to Sunward's news release dated Nov. 23, 2010).

"Murindo is one of the most significant copper-gold exploration prospects in the world," said Philip O'Neill, Sunward's Chief Executive Officer. "This project's orderly and responsible advancement has the potential to significantly contribute toward economic and social well-being for the local community and the people of Colombia. We look forward to working with stakeholders to ensure all involved benefit from its development."

The Murindo project encompasses 16,000 hectares straddling the border between Antioquia and Choco departments in northern Colombia. The prospect is characterized by porphyry-style, copper-gold mineralization at surface. Sunward is in the process of having a 43-101 technical report prepared on the Murindo project and expects to be in a position to file the 43-101 technical report with SEDAR in short order.

All of the issued and outstanding shares of La Muriel were acquired from Gold Plata Mining International Corp., a company controlled by Michel Juilland.  Gold Plata was also the vendor of the Company's principal asset, the Titiribi Project.  In accordance with prior agreements, Mr. Juilland is a director of the Company.

About The Company:

Sunward Resources is a well-capitalized Canadian-based company focused on the exploration of gold/copper porphyry projects in Colombia.  The Company has strong operational expertise in Colombia and is currently drilling its Titiribi Project southwest of Medellin.

 

This news release contains "forward-looking information", which may include, but is not limited to, statements with respect to the future financial or operating performance of Sunward Resources Ltd. and its projects. Often, but not always, forward-looking statements can be identified by the use of words such as "plans", "expects", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates", or "believes" or variations (including negative variations) of such words and phrases, or state that certain actions, events or results "may", "could", "would", "might" or "will" be taken, occur or be achieved. Forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of Sunward Resources Ltd. to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Forward-looking statements contained herein are made as of the date of this press release and Sunward Resources Ltd. disclaims, other than as required by law, any obligation to update any forward-looking statements whether as a result of new information, results, future events, circumstances, or if management's estimates or opinions should change, or otherwise. 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, the reader is cautioned not to place undue reliance on forward-looking statements.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.


 

SOURCE Sunward Resources Ltd.

For further information:

SUNWARD RESOURCES LTD.

Investor Relations:           Corporate Contact:
Scott Koyich            Dave Forest
(403) 619-2200            (604) 568-7617
scott@sunwardresources.com           dave@sunwardresources.com

 

Organization Profile

Sunward Resources Ltd.

More on this organization


Custom Packages

Browse our custom packages or build your own to meet your unique communications needs.

Start today.

CNW Membership

Fill out a CNW membership form or contact us at 1 (877) 269-7890

Learn about CNW services

Request more information about CNW products and services or call us at 1 (877) 269-7890