VANCOUVER, Feb. 23 /CNW/ - Sunward Resources Ltd. ("Sunward" or "the
Company") has reached revised terms for the acquisition of all of the
issued and outstanding shares of La Muriel Mining Corporation ("La
Muriel"), the sole owner of the Murindo copper-gold porphyry project
("Project") in Colombia. Under the revised agreement, Sunward will
provide the vendors an advance payment of $1 million at closing and
undertake to fund all activities related to securing access and
carrying out certain work in connection with the Project ("Project
Funding"). Upon achieving the legal and physical ability to gain
reasonable access to Murindo, Sunward would be 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 Project Funding by the
seven-day average trading price of Sunward shares immediately preceding
the day when the Sunward Board approves the issuance of the shares. In
addition, the vendors would not be required to repay $485,000 already
advanced from Sunward.
La Muriel was previously subject to an agreement dated December 23, 2009
under which Sunward agreed to acquire all of the outstanding shares of
La Muriel in consideration for eight million shares of Sunward to be
paid at closing. Closing of that purchase and sale agreement has not
taken place due to issues related to lack of access to the property and
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.
Notwithstanding the access issues, in November 2010, Rio Tinto Mining
and Exploration Limited entered into an agreement with La Muriel under
which Rio Tinto may acquire a 70% interest in the Project upon payment
of US $60 million in cash - for more details on this agreement, please
refer to Sunward's news release dated November 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
The sole shareholder of La Muriel is Gold Plata Mining International
Corporation, a company controlled by Michel Juilland. Mr. Juilland was
elected to the Company's Board of Directors and appointed non-executive
Chairman at the annual meeting of shareholders held on Sept. 8, 2010.
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.