Seafield Resources Ltd.
TSX VENTURE : SFF

Seafield Resources Ltd.

November 17, 2009 16:18 ET

Seafield Expands its Gold Interests to Colombia

TORONTO, ONTARIO--(Marketwire - Nov. 17, 2009) - Seafield Resources Ltd. ("Seafield") (TSX VENTURE:SFF) has signed a letter of intent with privately-owned Caribbean Copper and Gold Corp. ("CCGC"). Seafield intends to enter into a formal agreement (the "Definitive Agreement"), whereby Seafield will purchase from CCGC all right, title, and interest in and to certain mining claims, options, and land packages (the "Property"), located in the Quinchia district of Colombia, as well as all relevant data, drill cores, and materials related thereto.

Consideration for the purchase of the Property by Seafield shall consist of cash payments to CCGC and issuances to CCGC of common shares of Seafield. On or before the effective date of the Definitive Agreement (the "Effective Date") Seafield shall pay 5,000,000 common shares and US$250,000. On the first anniversary of the Effective Date, Seafield may elect to make a final payment to CCGC of US$250,000 and an additional 2,000,000 common shares of Seafield or return the properties. Seafield shall also assume underlying property option payments totaling US$5,500,000 over 30 months.

In addition, Seafield will undertake to make exploration expenditures and property payments of not less than US$2,000,000 on the Property during the 12 month period following the date of the first option payment to certain property owners.

The Quinchia historical gold mining district is known to host historical non compliant NI 43-101 resources which, it is hoped, can be advanced to the NI 43-101 resource stage. The Quinchia Property covers approximately 4,700 hectares. The district lies within established infrastructure, including easy access to the Pan-American highway, regional power grid and soon to be refurbished railway, and is located at a relatively low altitude of less than 2,000 metres.

Gold in the Quinchia district occurs in altered dioritic intrusions, in diorite-basalt contact zones and within breccia pipes related to the intrusions. Previous exploration on the areas has outlined porphyry style gold mineralization in outcrop, numerous geochemical anomalies and airborne geophysical signatures related to porphyritic intrusions.

The Quinchia Property lies in the same Mid-Cauca porphyry geological belt which hosts the Marmato Mountain deposit, currently being explored by Medoro Resources Ltd. and which is reported to host between 12-15 million ounces of gold, and the La Colosa discovery of AngloGold Ashanti where a gold porphyry system has been discovered with an initial inferred resource of 468.8 million tonnes grading 0.86 g/t Au for a total of 12.9 million ounces gold.

Marmato is less than 20 km to the northeast of Quinchia and La Colosa is located 60 km southeast of Quinchia.

The transaction remains subject to completion of due diligence by Seafield and regulatory approvals.

Seafield has also completed the second tranche of a proposed 17-million-unit financing. As a result, the Company has issued 950,000 units at a price of $0.125 per unit for gross proceeds of $118,750. Each unit consists of one common share and one common share purchase warrant entitling the holder to acquire an additional share at $0.16 for a two-year period. In the event that the common shares close at a price higher than $0.30 per share for 20 consecutive days, the warrant holders may be given notice that they will have 30 days to exercise the warrants.

Proceeds of the financing will be used for acquisitions, exploration and general working capital purposes. The securities issued are subject to a four-month hold period from the date of issuance. Completion of the private placement is subject to final acceptance by the TSX Venture Exchange.

James Pirie, Vice President, designated as the Qualified Person under National Instrument 43- 101, has reviewed and approved the contents of this news release.

This news release includes certain "forward looking statements" within the meaning of the United States Private Securities Litigation Reform Act of 1995. Without limitation, statements regarding potential mineralization and resources, exploration results, and future plans and objectives of the Company are forward looking statements that involve various degrees of risk. The following are important factors that could cause the Company's actual results to differ materially from those expressed or implied by such forward looking statements: changes in the world wide price of commodities, general market conditions, risks inherent in exploration, risks associated with development, construction and mining operations, the uncertainty of future profitability and the uncertainty of access to additional capital. The Company relies on litigation protection for 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.

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