Sherwood Copper Corporation

Sherwood Copper Corporation

March 30, 2007 10:56 ET

Sherwood Announces Exercise of Convertible Debenture Over-Allotment Option

Proceeds to Complete Development of Minto Mine, Accelerate Phase 2 Expansion & Exploration

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - March 30, 2007) -


Sherwood Copper Corporation (TSX VENTURE:SWC)(TSX VENTURE:SWC.DB) today announced that the syndicate of underwriters led by BMO Capital Markets has exercised $3,600,000 of its over-allotment option for Sherwood's previously announced C$40 million aggregate principal amount of convertible senior unsecured debentures due March 31, 2012 (the "Debentures"). The Debentures will bear interest at a rate of 5.0% per annum payable semi-annually and will be convertible at the option of the holder into common shares of Sherwood Copper at a conversion rate of C$6.30 per common share.

The Debentures are listed for trading on the TSX Venture Exchange under the symbol SWC.DB.

The net proceeds from the exercise of the over-allotment option will be used to complete the development of Sherwood's high-grade Minto copper-gold project in the Yukon Territory, as well as the acceleration of the Phase 2 expansion to 2,400 metric tpd, ahead of the feasibility schedule, continue the aggressive exploration of the Minto property for additional high grade reserves, and for general corporate purposes.

Mine Development Progress

Sherwood estimates that development of the high grade, open pit Minto copper-gold mine is now more than 75% complete and is on track for completion ahead of schedule, during the latter part of the second quarter, 2007. All major equipment components are now installed and the remaining work principally consists of piping, electrical and conveyors, as well as the remaining pre-stripping (which is now more than 85% complete). Recent photographs of development progress can be viewed on Sherwood's website at

Exploration Resumes

Exploration drilling has resumed at the Minto project, with Phase 1 targeting the "gap" between the main Minto deposit and the recently discovered and defined Area 2 resource. As announced March 5, 2007, the prime focus of the Phase 1 program is to test the possibility that it might be possible to link up the Minto and Area 2 deposits, as well as extending the multiple stacked mineralized zones from Area 2 under the main Minto deposit. "Success in Phase 1 could dramatically increase the resource potential on the Minto property and could radically change the production potential of the Minto Mine," said Stephen Quin, President & CEO of Sherwood Copper.

The securities offered have not been registered under the U.S. Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from the registration requirements. This press release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the securities in any State in which such offer, solicitation or sale would be unlawful.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory, Canada. As announced August 28, 2006, the feasibility study indicates production averaging 41 million pounds of copper and 17,295oz of gold per year at cash costs of US$0.57 per pound over the first six years of operations. Mine construction is substantially advanced and Construction Manager JDS Energy & Mining is supervising development activities, with Hatch Ltd. providing engineering and procurement services. Clark Builders has been retained as general contractors and is constructing the process and related facilities, Pelly Construction is completing the contract mining and numerous other contractors have been engaged for specialized areas of activities. Development activities at the Minto Project are proceeding rapidly and production is forecast mid-2007, with an accelerated schedule targeting start up in Q2, 2007. Project financing and forward sales agreements for a significant portion of the first four years of production were announced October 26, 2006.

Sherwood Copper

Sherwood's successful consolidation of the ownership of the Minto Project provides a unique investment opportunity - participation in an already permitted, partially constructed, high-grade, open pit copper-gold project located in Canada with developed infrastructure and substantial exploration potential within the current property.

Additional Information

Additional information on Sherwood and its Minto Project can be obtained on Sherwood's website at

On behalf of the board of directors


Stephen P. Quin, President & CEO

This news release may contain forward looking statements which are not historical facts, such as ore reserve estimates, anticipated production or results, sales, revenues, costs, or discussions of goals and exploration results, and involves a number of risks and uncertainties that could cause actual results to differ materially from those projected. These risks and uncertainties include, but are not limited to, metal price volatility, volatility of metals production, project development, ore reserve estimates, future anticipated reserves and cost engineering estimate risks, geological factors and exploration results. See the Company's filings for a more detailed discussion of factors that may impact expected results.

The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Sherwood Copper Corporation
    Stephen Quin
    (604) 687-7545 or 1-888-338-2200
    Sherwood Copper Corporation
    Brad Kopp
    Investor Relations
    (604) 687-7545 or 1-888-338-2200
    Sherwood Copper Corporation
    Kristy Reynolds
    Investor Relations
    (604) 687-7545 or 1-888-338-2200
    (604) 689-5041 (FAX)