Sherwood and Capstone Sign Combination Agreement
11 October 2008 - 1:39AM
Marketwired
Sherwood Copper Corporation (TSX VENTURE: SWC)(TSX VENTURE: SWC.DB)
and Capstone Mining Corp. (TSX: CS) today announced that, further
to their joint news releases dated September 8 and September 18,
2008 respectively, the companies have entered into a combination
agreement dated as of October 9, 2008 pursuant to which the
companies will combine, by way of plan of arrangement, to create a
well-funded, low-cost, growth-oriented, copper company with two
producing mines in mining friendly jurisdictions in North America.
A copy of the combination agreement is available on SEDAR at
www.sedar.com under the companies' respective profiles.
As previously disclosed, the special meeting of Sherwood's
shareholders will be held in the offices of Sherwood's counsel,
Dumoulin Black LLP, on the 10th floor of 595 Howe Street, Vancouver
BC at 10:00 AM on November 14, 2008. Additional information will be
provided in the information circular to be mailed to Sherwood's
shareholders in late October 2008.
About Capstone Mining
Capstone is a Canadian based mining company currently operating
the 100% owned Cozamin copper-silver-lead-zinc mine located in
Zacatecas State, Mexico where a recently completed drill program is
anticipated to result in significantly increased mineral reserves.
The Cozamin Mine produced 6.7 million pounds of copper in
concentrate at a total cash cost of US$0.90 per pound in the three
months ended June 30, 2008 and is currently commissioning its mill
expansion to 3,000 tonnes per day of throughput. Capstone has
approximately 80.3 million shares outstanding and is well financed
with no bank debt and an approximately 22% holding in Silverstone
Resources Corp.
Additional information on Capstone Mining and its Cozamin Mine
is available on Capstone's website at
http://www.capstonemining.com.
About Sherwood Copper
Sherwood Copper owns 100% of the high grade Minto copper-gold
mine in Yukon, Canada, which was built on budget and ahead of
schedule in 2007. The Minto Mine is one of the highest-grade open
pit copper-gold mines in the world, and is forecast to be a low
cost producer. The Minto Mine produced 12.8 million pounds of
payable copper at a total cash cost of C$0.96 per pound in the
three months ended June 30, 2008 and is currently commissioning its
Phase 3 mill expansion to 3,200 tonnes per day of throughput. With
140% growth in mineral resources in 2006 and 2007, followed by a
successful 2008 drilling program, Sherwood is preparing new mineral
resource and reserve estimates that are expected to upgrade and
increase the mineral resources and reserves at the mine, and plans
to evaluate options for further significant increases in mill
throughput. Sherwood also has a 100% interest in the high grade
Kutcho copper-zinc project in BC, Canada, which it is advancing
towards production.
Additional information on Sherwood and its Minto Mine can be
obtained on Sherwood's website at
http://www.sherwoodcopper.com.
Forward-Looking Statements
This document may contain "forward-looking statements" within
the meaning of Canadian securities legislation and the United
States Private Securities Litigation Reform Act of 1995. These
forward-looking statements are made as of the date of this document
and Capstone Mining Corp. and Sherwood Copper Corp. (hereinafter
referred to as the "Companies") do not intend, and do not assume
any obligation, to update these forward-looking statements.
Forward-looking statements relate to future events or future
performance and reflect management of the Companies' expectations
or beliefs regarding future events and include, but are not limited
to, statements with respect to the estimation of mineral reserves
and resources, the realization of mineral reserve estimates, the
timing and amount of estimated future production, costs of
production, capital expenditures, success of mining operations,
environmental risks, unanticipated reclamation expenses, title
disputes or claims and limitations on insurance coverage. In
certain cases, forward-looking statements can be identified by the
use of words such as "plans", "expects" or "does not expect", "is
expected", "budget", "scheduled", "estimates", "forecasts",
"intends", "anticipates" or "does not anticipate", or "believes",
or variations of such words and phrases or statements that certain
actions, events or results "may", "could", "would", "might" or
"will be taken", "occur" or "be achieved" or the negative of these
terms or comparable terminology. By their very nature
forward-looking statements involve known and unknown risks,
uncertainties and other factors which may cause the actual results,
performance or achievements of the Companies to be materially
different from any future results, performance or achievements
expressed or implied by the forward-looking statements. Such
factors include, among others, risks related to actual results of
current exploration activities; changes in project parameters as
plans continue to be refined; future prices of resources; possible
variations in ore reserves, grade or recovery rates; accidents,
labour disputes and other risks of the mining industry; delays in
obtaining governmental approvals or financing or in the completion
of development or construction activities; as well as those factors
detailed from time to time in the Companies' interim and annual
financial statements and management's discussion and analysis of
those statements, all of which are filed and available for review
on SEDAR at www.sedar.com. Although the Companies have attempted to
identify important factors that could cause actual actions, events
or results to differ materially from those described in
forward-looking statements, there may be other factors that cause
actions, events or results not to be as anticipated, estimated or
intended. 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, readers should not place undue reliance on forward
looking statements.
Neither the TSX Venture Exchange nor the TSX any accept
responsibility for the adequacy or accuracy of this press
release.
Contacts: For further information about Capstone, please
contact: Darren Pylot President & CEO (604) 684-8894 or
1-866-684-8894 Capstone Mining Corp. Chris Tomanik (604) 684-8894
or 1-866-684-8894 Capstone Mining Corp. Mark Patchett (604)
684-8894 or 1-866-684-8894 (604) 688-2180 (FAX) Email:
info@capstonemining.com Website: www.capstonemining.com For further
information about Sherwood, please contact: Stephen Quin President
& CEO (604) 687-7545 or 1-888-338-2200 Sherwood Copper
Corporation Neil MacRae (604) 687-7545 or 1-888-338-2200 (604)
689-5041 (FAX) Email: info@sherwoodcopper.com Website:
www.sherwoodcopper.com
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