Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation

November 17, 2006 07:00 ET

Sherwood Copper Corp. Announces C$5.3 Million Private Placement Financing

Funds to Advance the high-grade Minto Copper-Gold Project, including Pre-Feasibility Study on Area 2

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Nov. 17, 2006) - Sherwood Copper Corporation (TSX VENTURE:SWC) today announced that it has entered into agreements with three investors who have agreed to purchase, on a non-brokered private placement basis, 1,115,000 common shares at a purchase price of $3.30 per common share for gross proceeds of $3,679,500. In addition, other investors have agreed to purchase 390,000 flow-through shares at a price of $4.25 for additional gross proceeds of $1,657,500. The net proceeds of the financings would be used for the advancement of Sherwood's high-grade Minto copper-gold project in the Yukon, including the advancement of the Area 2 mineralization through a pre-feasibility study, exploration on areas outside Area 2, and for general corporate purposes.

"This financing allows Sherwood to pick up the pace at our high-grade Minto copper-gold project with the objective of boosting reserves, extending the mine life at high grades and continuing aggressive exploration," said Stephen Quin, President & CEO of Sherwood Copper. "With debt arrangements completed, the development of the Minto Mine is fully funded. Our current funds are fully committed to meeting that objective, however we have additional opportunities to grow our reserve base by advancing the newly discovered high grade Area 2 mineralization through a pre-feasibility study over the coming months, as well as continuing our aggressive exploration program to identify more mineralization that could provide further reserve additions. This financing ensures that we have the funds to continue to advance those opportunities on an accelerated basis."

Minto Development Activities

Development activities at the Minto Project are proceeding rapidly, with the mine approaching 40% complete, waste pre-stripping is approximately 50% complete and the project is on track for the commencement of production during the second quarter of 2007. 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. Construction Manager JDS Energy & Mining is supervising the development activities, with Hatch providing engineering and procurement services. Clark Builders are the general contractors constructing the process facilities and Pelly Construction is completing the contract mining, while several other contractors are engaged in specialized areas of activity.

Area 2 Activities

As announced November 2, 2006, drilling at Area 2, immediately south of the high-grade pit currently being developed, has resulted in the discovery a significant body of high-grade copper-gold mineralization with similar grades, similar thicknesses and similar depths of burial to the main pit. While a significant number of drill results remain outstanding, based on the results received to date and visual estimates for the remaining holes, Sherwood believes that the results received to date warrant completion of a pre-feasibility study targeting the incorporation of Area 2 into the Minto Mine production plans. The objective would be to support the definition of a mineral reserve at Area 2 that would be amenable to processing utilizing the infrastructure currently being constructed.

Private Placement

The offering is scheduled to close on or about November 24, 2006 and is subject to certain conditions including, but not limited to, the receipt of all necessary approvals, including the approval of the TSX Venture Exchange, and other applicable securities regulatory authorities. The flow through funds will be used for exploration expenditures which constitute Canadian Exploration Expenses as defined in the Income Tax Act.

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 and 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 during the second quarter of 2007. Project financing and forward sales agreements for a significant portion of the first four years of production were announced October 26, 2006.

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.

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. The securities have not been registered under the United States Securities Act of 1933, as amended, and may not be offered or sold in the United States absent registration or an applicable exemption from registration requirements.

On behalf of the board of directors

SHERWOOD COPPER CORPORATION

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

Contact Information

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