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SUNWARD COMPLETES ACQUISITION OF 100% OF TITIRIBI PROJECT AND BUY-OUT OF 2% NSR

^{Published on 2010-11-24 06:20:30 - Market Wire}
 

TSX-V: SWD

VANCOUVER, Nov. 24 /CNW/ - Sunward Resources Ltd. ("Sunward" or the "Company") (TSX-V: SWD) is pleased to announce that it has completed the acquisition of 100% of the shares of Goldplata Resources Limited ("GRL"), the holder of 100% of the Titiribi project in Colombia, free of royalties, pursuant to its amended agreement with the vendor as announced on September 23, 2010.  The transaction was reviewed and unanimously approved by an independent special committee of the board of directors comprised of the non-executive directors who are not related parties to the transaction.

The original earn-in agreement required Sunward to incur up to US$21 million of project related expenditures - including up to US$15 million towards the completion of a bankable feasibility study - to obtain an 80% shareholding in GRL: thereafter Sunward had the option to issue 4 million shares to acquire the remaining 20% shareholding and the 2% NSR on the project held by the vendor.  The revised agreement, no longer requires Sunward to complete a bankable feasibility study before vesting its 80% interest, and allows Sunward to immediately take a 100% interest in the project and to acquire the 2% NSR, all in exchange for the issuance of 6 million shares of Sunward.

The vendor of GRL is Gold Plata Mining International Corp., 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 September 8, 2010.

The Company also issued 5 million shares to Gold First Investments Limited ("Gold First") pursuant to its agreement with Gold First dated October 28, 2009.  These shares, together with the 36,400,000 shares already held by Gold First, result in Gold First owning an aggregate of 41,400,000 common shares, being 45.46% of the 91,078,381 issued and outstanding shares of Sunward upon completion of the transaction.  Gold First is a BVI incorporated company based in Hong Kong.  Gold First has two shareholders: Notela Resource Advisors Ltd. ("Notela") and Lakeview Group Holdings Limited ("Lakeview").  Mr. Philip O'Neill, the CEO and a director of Sunward, owns one third of the shares of Notela.

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 mineralisation 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 35,000 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 21,000 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.