VANCOUVER, Jan. 13 /CNW/ - Mr. Philip O'Neill, Chief Executive Officer
and Director of Sunward Resources Ltd. (the "Company" or "Sunward")
(TSX-V: SWD), today announced that the Company has closed the sale, on
a private placement basis, of the maximum number of Units contracted
for in the financing described in the Company's News Release of
December 15, 2010 (the "December News Release") - that is, 38,000,000
Units at a purchase price of $1.35 per Unit - for aggregate gross
proceeds totalling $51.3 million (all figures are in Canadian Dollars).
Each Unit consists of one common share of Sunward and one common share
purchase warrant of Sunward ("Warrant") which entitles the holder
thereof to acquire one common share of Sunward for an exercise price of
$1.65 prior to the third anniversary of the closing date. As described
in the December News Release, Electrum Strategic Acquisitions LLC
("Electrum"), a member of the Electrum Group of Companies ("Electrum
Group"), led the financing by subscribing for 25.95 million Units. In
addition, Paulson & Co. Inc., on behalf of the several investment funds
and accounts managed by it ("Paulson") subscribed for 10.2 million
Units and Tocqueville Asset Management ("Tocqueville") subscribed for
1.85 million Units. All securities issued under the private placement
will be subject to a hold period expiring on May 13, 2011. Upon
conclusion of this placement, Electrum, Paulson, and Tocqueville will
own 26.9%, 10.6%, and 1.9% of Sunward on a fully-diluted basis,
Said Mr. O'Neill: "Sunward is very pleased to welcome Electrum, Paulson,
and Tocqueville as shareholders of the Company. These groups are among
the world's most astute precious metals investors and their major
involvement in Sunward represents a strong indication of the high
prospectivity of our projects.This placement recognizes the tremendous
value of the Company's key asset - the 3.7-million-ounce, 100%-owned
Titiribi gold and copper porphyry project in Antioquia, Colombia
("Titiribi"). The Company can apply its strengthened balance sheet
towards continuing to build value at Titiribi and facilitating closing
of its earlier-announced acquisition of La Muriel Mining Corporation
William Natbony, President of Electrum, said: "This is an ideal
investment for the Electrum Group. Both Titiribi and Murindo are
large, highly prospective projects with significant growth potential.
We are looking forward to working with the management of Sunward to
advance the Company's exceptional portfolio of projects along the value
chain for the benefit of all shareholders."
About the Titiribi Project:
The Cerro Vetas mineralized body at Sunward Resources' Titiribi project
hosts an inferred resource of 230 million tonnes at an average grade of
0.5 grams per tonne gold and 0.2 percent copper using a
0.3-gram-per-tonne-gold cut-off (NI 43-101 technical report dated May
19, 2010). The project is located approximately 70 kilometres
southwest of the city of Medellin, Colombia, in Antioquia department,
within the historical Titiribi mining district (estimated total gold
production of three to five million ounces). Access is by paved highway
Mineralization at Titiribi is hosted within a number of porphyry stocks
and porphyritic dikes and sills. The dominant mineral associated with
mineralization is chalcopyrite, which occurs as disseminations and in
veinlets. Plagioclase and secondary biotite are also significant within
the mineralized assemblage. Mineralization appears to be related to
extensive potassic alteration, with propylitic and argillic alteration
also widespread, along with lesser phyllic alteration.
Over 36,000 metres of drilling has been completed at Titiribi to date,
including approximately 14,600 metres completed historically by
previous operators, including Gold Fields and Windy Knob Resources,
along with more than 21,400 metres completed by Sunward Resources. The
mineralized body at Cerro Vetas remains open in all directions and at
depth. Sunward Resources currently has four drill rigs operating to
expand mineralization at the Titiribi project.
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 with a goal of
increasing the NI 43-101 inferred resource.
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.