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Sunward acquires 51% interest in Goldplata Resources Limited

^{Published on 2010-09-07 19:41:13 - Market Wire}
 

TSX-V: SWD

VANCOUVER, Sept. 7 /CNW/ - Sunward Resources Ltd. ("Sunward") (the "Company") is pleased to announce that effective August 31, 2010, it has exercised its option, through its wholly-owned subsidiary Sunward Investments Ltd., to acquire the initial 51% interest in Goldplata Resources Limited - the 100% owner of the Titiribi gold and copper porphyry project located in Titiribi, Antioquia, Colombia. As part of the terms of this acquisition, Sunward will issue 5 million shares to Gold First Investments Limited.

Sunward can further subscribe to acquire 19% of Goldplata Resources Limited (for an aggregate ownership of 70%) by forwarding an additional US$3.5 million for work on the Titiribi project and by issuing Gold First Investments Limited with 5 million shares by September 18, 2013. Sunward can further subscribe to acquire another 10% of Goldplata Resources Limited (for an aggregate ownership of 80%) by forwarding the funds necessary to complete a bankable feasibility study, to a cap of US$15 million, and issuing Gold First Investments Limited 5 million shares by September 18, 2015. Goldplata Mining International Corp. is entitled to a 2% net smelter returns royalty upon the achievement of commercial production at Titiribi. Sunward can purchase the net smelter returns royalty for full and final consideration of US$3.5 million.

Upon subscribing to acquire 80% of Goldplata Resources Limited, Sunward can acquire the remaining interest in the Titiribi project (20% of Goldplata Resources Limited shares and 2% net smelter returns royalty) by issuing 4 million Sunward shares to Goldplata Mining International Corp. and thus allowing Sunward to own 100% of the Titiribi project.

In addition, effective August 30, 2010, the 20,833,333 previously issued special warrants were automatically exercised into common shares of the Company on the basis of 1.1 common shares for each special warrant, resulting in the issuance of 22,916,666 common shares as part of the $25 million bought deal financing that closed on April 29, 2010.

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 g/t gold and 0.2% copper using a 0.3 g/t 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 historic Titiribi mining district (estimated total gold production of 3 to 5 million ounces). Access is by paved highway from Medellin.

Mineralization at Titiribi is hosted within a number of porphyry stocks and porphyritic dykes 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 23,000 metres of drilling have 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 9,000 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 working at the Titiribi project.

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.