TSX-V: SWD
VANCOUVER, Nov. 23 /CNW/ - Sunward Resources Ltd. (the "Company" or "Sunward") (TSX-V: SWD) is pleased to announce an update with regards to the Murindo Project. As previously disclosed, Sunward can acquire all of the shares of La Muriel Mining Corp ("La Muriel"), 100% owner of the Murindo Project (the "Project"), in exchange for 8 million shares of the Company, subject to regulatory approval.
Pursuant to a previous agreement with La Muriel, Rio Tinto Mining and Exploration Limited ("Rio Tinto") paid US$3.83 million in respect to the Murindo Project as part of an option to acquire a 70% interest in the Project. Effective November 19, 2010, La Muriel and Rio Tinto have agreed to withdraw from the previous agreement and replace it with a revised agreement. As part of this revised agreement, La Muriel will, as soon as practicable, complete a pre-feasibility study or undertake exploration and development programs towards such, at a cost of US$20 million. A maximum of US$3 million relating to costs associated with local, community, and government relations can be applied against this US$20 million threshold. For a period commencing on November 19, 2010 and expiring 60 days following completion of such expenditures (or completion of pre-feasibility study if earlier), Rio Tinto will have the option to acquire a seventy percent (70%) interest in the Murindo Project on payment to La Muriel of US$60 million in cash. La Muriel may elect to require Rio Tinto to increase its interest to eighty percent (80%) by requiring Rio Tinto to fund the next US$15 million in project costs, and it may further elect to require Rio Tinto to acquire the remaining 20% interest for US$20 million in cash. If Rio Tinto does not exercise its option to acquire a 70% interest, it will retain a 1.7% net smelter royalty in the Project in consideration for the US$3.83 million it has previously paid in respect to the Murindo Project.
If Rio Tinto exercises its option, the parties will enter into a formal joint venture agreement (the "JVA") on the Murindo Project, on terms which have been agreed. As part of the JVA, if La Muriel or Rio Tinto fall below a 10% participating interest in the Project, they will be deemed to have withdrawn from the JVA. The remaining party to the JVA will acquire the shares of the withdrawing party in consideration for a 1.7% net smelter return royalty on the Murindo Project.
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 and appointed non-executive chairman at the annual meeting of shareholders held on September 8, 2010.
About The Company:
Sunward Resources is a well-capitalized Canadian based company focussed 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.
For further information:
SUNWARD RESOURCES LTD.
Investor Relations: | Corporate Contact: |
Scott Koyich | David Forest - COO |
(403) 619-2200 | (604) 417-2960 |
[email protected] | [email protected] |
Share this article