Sunward Resources Ltd. (the "Company") (TSX-V: SWD) has entered into a binding agreement (the "Divestment Agreement") to sell 100% of the outstanding shares of La Muriel Mining Corporation ("La Muriel") to Goldplata Mining International Corp ("Goldplata") whose principal asset is the Murindo copper porphyry project ("Murindo"). In consideration for the La Muriel Shares, Goldplata will pay $2.6 million to the Company, to be satisfied by delivery of 1.3 million Sunward common shares, currently held by Goldplata, to a wholly-owned subsidiary of the Company. The La Muriel Shares were originally acquired by the Company from Goldplata in February 2011 for payment of US$1 million, forgiveness of US$485,000 in previous advances and the requirement to issue up to six million shares of Sunward upon the Company obtaining legal and physical access to the Murindo Property.
The Divestment Agreement results in an effective reduction in the number of outstanding shares of the Company by 7.3 million shares, on a fully diluted basis.
With the disposition of its interest in La Muriel, the Company can focus on its 100%-owned Titiribi Project ("Titiribi" or the "Project") located in Antioquia Department, approximately 70 kilometres southwest of the city of Medellin, Colombia. Titiribi is emerging as one of the most significant exploration projects in South America. In September 2011, the Company completed a 43-101 report on the Project establishing an Indicated Mineral Resource containing 2.2 million ounces of gold and an Inferred Mineral Resource containing an additional 6.08 million ounces of gold (please see below for more details). The Company has continued receiving positive results from subsequent extensive drilling on the property.
Colin Andrew, Chief Executive Officer of the Company stated: "Our exploration work at Titiribi is progressing dynamically and rapidly with eleven drill rigs now operating on the property, and, with recent excellent results, we feel that it is essential for us to put more emphasis on this key project to deliver maximum value to our shareholders."
Ricardo Duarte, a member of the Board of Directors of the Company and Chairman of the Board Committee which recommended this divestiture stated: "Sunward is committed to developing and advancing mining projects in Colombia in a safe and socially responsible manner. Titiribi is a vivid example of the Company's track record of putting its commitments into action. By contrast, Murindo is located in a remote area where safety, legal, indigenous and biodiversity concerns remain too paramount to warrant continued involvement by Sunward"
The transaction is expected to close on December 14, 2011.
Sunward Resources is a well-capitalized, Canadian-based company focused on the exploration and development of gold/copper porphyry projects in Colombia. The Company has strong operational expertise in Colombia and currently has eleven rigs drilling on its Titiribi Project southwest of Medellin. Titiribi hosts an NI 43-101-compliant Indicated Mineral Resource of 2.2 million ounces gold within 142.94 million tonnes grading 0.480 grams/tonne gold and 0.148% copper and an Inferred Mineral Resource of 6.08 million ounces gold within 372.7 million tonnes grading 0.507 grams/tonne gold and 0.078% copper, both assessed using a 0.3 grams/tonne gold cut-off. Based on the above, the Titiribi project also hosts 465.9 million pounds of copper in the Indicated Resource and 645.7 million pounds of copper in the Inferred Resource. The Titiribi project thus contains 3.50 million ounces of gold equivalent in the Indicated Resource category and a further 7.90 million ounces of gold equivalent in the Inferred Resource category, calculated on the basis of gold price of $1,114 per ounce and copper price of $3.07 per pound.
SUNWARD RESOURCES LTD.
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.
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