Sherwood Copper Corporation

Sherwood Copper Corporation

October 26, 2006 08:11 ET

Sherwood Completes C$85 Million Debt Package for Minto Project, Yukon

Development Progress Continues For High Grade Copper-Gold Production in Q2/2007

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 26, 2006) - Sherwood Copper Corporation (TSX VENTURE:SWC) today announced that it has closed on the approximately C$85 million senior and subordinated debt package announced October 17, 2006 and has begun to draw against the facilities to complete the construction of the high-grade Minto copper-gold mine and repay the subordinated facility. The Minto Mine, located in Canada's Yukon Territory, is more than one-third built and is scheduled to commence production in the second quarter of 2007, producing an average of 41 million pounds of copper and 17,295oz of gold per year.

"These debt arrangements complete the funding required for the construction of the high grade Minto copper-gold mine," said Stephen Quin, President & CEO of Sherwood. "The Minto mine is more than one-third built and should be in production during the second quarter of 2007, generating robust returns to shareholders. These robust returns are our spring-board that should launch Sherwood on its growth strategy, both through resource and reserve expansions within the Minto property and through the deployment of our anticipated robust cash flow into other areas."

Debt Package

Sherwood's wholly owned subsidiary, Minto Explorations Ltd. ("MintoEx") has closed on the debt package with Macquarie Bank Limited ("Macquarie") detailed in the news release dated October 17, 2006, which is comprised of a US$57.788 million (approximately C$65 million) project loan facility ("PLF") and a C$20 million subordinated debt facility ("SDF"). The first advance under the PLF was used to repay the C$4.3 million initial Tranche A drawn against the SDF, to pay fees and expenses and to fund on-going construction activities at the Minto mine. Since Tranche A has been repaid, Sherwood has issued to Macquarie 927,027 warrants, each entitling the holder to purchase an additional common share of Sherwood at C$3.70 per share until October 25, 2008 in relation to the SDF, and the full C$20 million remains available for utilization. The warrants and the shares issuable upon exercise of the warrants are subject to a hold period expiring February 26, 2007.

Development Progress

As of the closing date for the loan, the Minto Project was more than one-third built and is on schedule to achieve a second quarter, 2007 start-up. Progress to date includes near-completion of the water retention dam and concentrate storage shed, installation of the ball and SAG mill, construction of two 1.5 million litre fuel tanks, installation of three 1.2MW diesel generators and removal of more than 40% of the preproduction waste. Upcoming major tasks include erection of the mill building, completion of the explosives plant, installation of the apron feeder and flotation cells, and continued waste stripping.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory of Canada. As announced on July 10, 2006 and updated August 28, 2006, Sherwood has completed a feasibility study for the development of the Minto Project as a high grade, open pit copper-gold mine, which study demonstrated robust returns. Sherwood has engaged its engineering, procurement, construction management, mining and general contractors for the development of a mining operation at Minto. Development is now well underway and production is forecast to commence in the second quarter of 2007.


Sherwood's successful consolidation of the ownership of the Minto Project provides a unique investment opportunity - participation in an already permitted, high-grade, open pit copper-gold project that will be in production in approximately six months, and is located in Canada with good infrastructure and tremendous exploration potential on the property.

Additional Information

Additional information on Sherwood and its Minto Project, including photographs cataloguing recent construction progress, 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 affect expected results.

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

Contact Information

  • Sherwood Copper Corp.
    Stephen Quin
    (604) 687-7545 or 1-888-338-2200
    Sherwood Copper Corp.
    Brad Kopp
    Investor Relations
    (604) 687-7545 or 1-888-338-2200
    Sherwood Copper Corp.
    Kristy Reynolds
    Investor Relations
    (604) 687-7545 or 1-888-338-2200