Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

January 03, 2007 10:21 ET

Sherwood Completes Preferred Share Retraction for C$59.00

Retraction Results in Simplified Capital Structure

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Jan. 3, 2007) - Sherwood Copper Corporation (TSX VENTURE:SWC) today announced that it has completed the retraction of its 5,912,501 Series 1 preferred shares, effective December 29, 2006 (the "Retraction Date") for the total sum of C$59.13 (fifty-nine dollars and thirteen cents). The retraction of the Series 1 preferred shares results in Sherwood having 42,227,066 common shares (47,550,255 common shares on a fully diluted basis) and no preferred shares issued and outstanding, thus resulting in a simplified capital structure.

The Series 1 preferred shares were non-voting shares issued as part of the acquisition of Minto Explorations Ltd. ("MintoEx"). The only significant potential benefit to holders of the Series 1 preferred shares would have accrued if Sherwood decided to sell the Minto Project within one year from August 25, 2005 (the last date on which shares of MintoEx were purchased) or completion of a bankable feasibility study, whichever was later, after which Sherwood could retract the outstanding Series 1 preferred shares for a nominal sum.

Since a bankable feasibility study in respect of Sherwood's Minto Project was completed on July 7, 2006 and the Company did not make a decision to sell the Minto Project within the one year period noted above, a retraction notice was sent to the registered holders of the Series 1 preferred shares on or about December 5, 2006 advising of Sherwood's intention to retract the Series 1 preferred shares on the Retraction Date and enclosing a letter of transmittal with instructions on how to exchange certificates representing Series 1 preferred shares for cash.

Effective as of the Retraction Date, the holders of Series 1 preferred shares ceased to be Series 1 preferred shareholders and are only entitled to receive the retraction price of $0.00001 for each Series 1 preferred share held. Sherwood has deposited with Computershare Investor Services Inc. (the depositary for the purposes of the retraction) the cumulative retraction price of $59.13 for the purpose of making payments to holders of Series 1 preferred shares for their preferred shares upon presentation or surrender of their certificates representing such shares.

Minto Project

The Minto Project is a high-grade copper-gold deposit located in the Yukon Territory of Canada. The mine development is now approximately 50% completed and is on target to move into production in the second quarter of 2007. Agreement on the terms in this term sheet enhances the potential to complete the PPA with Yukon Energy and would lead to a significant contribution to enhancing the economic benefits from the mine for the shareholders as well as for the Yukon community stakeholders.

Sherwood

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 infrastructure and exploration potential on the 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

SHERWOOD COPPER CORPORATION

Stephen P. Quin, President & CEO

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

Contact Information

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