VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2008) - Sherwood Copper Corporation (TSX VENTURE:SWC) and Capstone Mining Corp. (TSX:CS) are pleased to announce that, at the special meeting of Sherwood's shareholders held on Friday, November 14, 2008 (the "Meeting"), Sherwood's shareholders voted overwhelmingly in favour of the previously announced business combination, by way of Plan of Arrangement (the "Arrangement"), with Capstone. Additional information concerning the Arrangement is provided in Sherwood's information circular dated October 15, 2008, which is available on SEDAR under Sherwood's profile at www.sedar.com.
At the Meeting, a special resolution approving the Arrangement (the "Arrangement Resolution") was passed by an affirmative vote of over the required two-thirds of the aggregate votes cast by Sherwood shareholders present in person and by proxy at the Meeting. Specifically, 99.93% of the votes cast in respect of the Arrangement Resolution voted in favour of the Arrangement Resolution and no notices of dissent were received by Sherwood.
The New Capstone
Combined under the name of Capstone Mining, Sherwood and Capstone will be a well-funded, low-cost, growth-oriented, copper company with two producing high grade copper mines in mining friendly jurisdictions in North America. Both Capstone's Cozamin and Sherwood's Minto mines have undergone a series of expansions, recently completed, over the past two years, aimed at maximizing production and minimizing costs. The benefits of these expansions, of both resources and copper output, should be evident in 2009 as the full production capacity of the mines is realized.
Following on extensive in-fill and step out drilling at both Cozamin and Minto, new resource estimates are in process which are expected to result in increased reserves, supporting longer mine lives and, in the case of Minto, potential further increases in mill capacity. In addition, Sherwood's high grade Kutcho copper project continues to be redesigned as a smaller, higher grade project following significant improvements in the continuity of the high grade copper mineralization in 2008.
Combined, the two companies, their operating mines, expansion potential, Kutcho development project and a recently enhanced balance sheet create an attractive base metal production entity, plus provides a platform for evaluating external growth opportunities where the new Capstone can lever off its mine building, operating, financing, exploration and project evaluation team.
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. The Cozamin Mine produced 6.7 million pounds of copper at a total cash cost of US$1.29 per pound in the three months ended September 30, 2008. Capstone has approximately 80.3 million shares outstanding and is well financed with no bank debt, and approximately USD $57.4 million in working capital as of September 30, 2008. Capstone recently completed expanding its mill capacity to 3,000 tonnes per day, as well as major drill program focused on upgrading and increasing the mineral resources and reserves at Cozamin.
Additional information on Capstone and its Cozamin Mine is available on Capstone's website at http://www.capstonemining.com.
About Sherwood Copper
Sherwood Copper owns 100% of the Minto copper-gold mine in Yukon, Canada, one of the highest-grade open pit copper-gold mines in the world, which was built on budget and ahead of schedule in 2007. The Minto Mine produced 12.8 million pounds of copper at a total cash cost of C$0.96 per pound in the three months ended June 30, 2008. Sherwood has approximately 53.8 million shares outstanding and, at June 30, 2008, had approximately $51.7 million in project related debt, $43.6 million in convertible debentures, and $8.1 million drawn against a corporate credit facility, after repaying US$16.9 million in the first six months of 2008. With 140% growth in mineral resources in two years, followed by a successful 2008 drilling program, Sherwood plans to evaluate options for further significant production expansions. Sherwood also has a 100% interest in the high grade Kutcho copper-zinc project in BC, Canada, which it is advancing towards a production decision.
Additional information on Sherwood and its Minto Mine can be obtained on Sherwood's website at http://www.sherwoodcopper.com. |
