Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

February 28, 2007 09:05 ET

Sherwood Closes C$40 Million Convertible Debenture Financing and Debentures Commence Trading on the TSX Venture Exchange

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

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Feb. 28, 2007) -

NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Sherwood Copper Corporation (TSX VENTURE:SWC) is pleased to announce that, further to its news release of February 8, 2007, it has completed the C$40 million convertible debenture financing led by BMO Capital Markets. In addition, effective today, 40,000 convertible debentures are eligible to commence trading on the TSX Venture Exchange under the symbol SWC.DB.

The net proceeds of the offering 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 previous schedule, continue the aggressive exploration of the Minto property for additional high grade reserves, and for general corporate purposes. Sherwood also intends to not draw on the C$20 million subordinated debt facility arranged with Macquarie Bank that was announced October 17, 2006, reducing the level of bank debt and, as a result, Sherwood will not issue the 2,359,459 warrants that would have been issued in relation to that facility.

A syndicate of underwriters led by BMO Capital Markets purchased, on a bought deal basis, C$40 million aggregate principal amount of convertible senior unsecured debentures due March 31, 2012. The convertible 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 underwriters have an over-allotment option to purchase additional convertible debentures representing 15% of the purchased debentures at the same price, exercisable for a period of 30 days from this closing. Any proceeds raised from the exercise of the over-allotment option will also be available to reduce bank debt.

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 http://www.sherwoodcopper.com.

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
    President
    (604) 687-7545 or 1-888-338-2200
    or
    Sherwood Copper Corporation
    Brad Kopp
    Investor Relations
    (604) 687-7545 or 1-888-338-2200
    or
    Sherwood Copper Corporation
    Kristy Reynolds
    Investor Relations
    (604) 687-7545 or 1-888-338-2200
    (604) 689-5041 (FAX)
    Website: www.sherwoodcopper.com