Sherwood Copper Corporation
TSX VENTURE : SWC

Sherwood Copper Corporation
Capstone Mining Corp.
TSX : CS

Capstone Mining Corp.

November 14, 2008 14:25 ET

Sherwood Shareholders Overwhelmingly Approve Business Combination with Capstone

99.9% of Sherwood Shareholders Vote for Creation of Growth Oriented, High Grade Copper Producer

VANCOUVER, BRITISH COLUMBIA--(Marketwire - Nov. 14, 2008) - Sherwood Copper Corporation (TSX VENTURE:SWC) and Capstone Mining Corp. (TSX:CS) are pleased to announce that, at the special meeting of Sherwood's shareholders held on Friday, November 14, 2008 (the "Meeting"), Sherwood's shareholders voted overwhelmingly in favour of the previously announced business combination, by way of Plan of Arrangement (the "Arrangement"), with Capstone. Additional information concerning the Arrangement is provided in Sherwood's information circular dated October 15, 2008, which is available on SEDAR under Sherwood's profile at www.sedar.com.

At the Meeting, a special resolution approving the Arrangement (the "Arrangement Resolution") was passed by an affirmative vote of over the required two-thirds of the aggregate votes cast by Sherwood shareholders present in person and by proxy at the Meeting. Specifically, 99.93% of the votes cast in respect of the Arrangement Resolution voted in favour of the Arrangement Resolution and no notices of dissent were received by Sherwood.

The New Capstone

Combined under the name of Capstone Mining, Sherwood and Capstone will be a well-funded, low-cost, growth-oriented, copper company with two producing high grade copper mines in mining friendly jurisdictions in North America. Both Capstone's Cozamin and Sherwood's Minto mines have undergone a series of expansions, recently completed, over the past two years, aimed at maximizing production and minimizing costs. The benefits of these expansions, of both resources and copper output, should be evident in 2009 as the full production capacity of the mines is realized.

Following on extensive in-fill and step out drilling at both Cozamin and Minto, new resource estimates are in process which are expected to result in increased reserves, supporting longer mine lives and, in the case of Minto, potential further increases in mill capacity. In addition, Sherwood's high grade Kutcho copper project continues to be redesigned as a smaller, higher grade project following significant improvements in the continuity of the high grade copper mineralization in 2008.

Combined, the two companies, their operating mines, expansion potential, Kutcho development project and a recently enhanced balance sheet create an attractive base metal production entity, plus provides a platform for evaluating external growth opportunities where the new Capstone can lever off its mine building, operating, financing, exploration and project evaluation team.

About Capstone Mining

Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico. The Cozamin Mine produced 6.7 million pounds of copper at a total cash cost of US$1.29 per pound in the three months ended September 30, 2008. Capstone has approximately 80.3 million shares outstanding and is well financed with no bank debt, and approximately USD $57.4 million in working capital as of September 30, 2008. Capstone recently completed expanding its mill capacity to 3,000 tonnes per day, as well as major drill program focused on upgrading and increasing the mineral resources and reserves at Cozamin.

Additional information on Capstone and its Cozamin Mine is available on Capstone's website at http://www.capstonemining.com.

About Sherwood Copper

Sherwood Copper owns 100% of the Minto copper-gold mine in Yukon, Canada, one of the highest-grade open pit copper-gold mines in the world, which was built on budget and ahead of schedule in 2007. The Minto Mine produced 12.8 million pounds of copper at a total cash cost of C$0.96 per pound in the three months ended June 30, 2008. Sherwood has approximately 53.8 million shares outstanding and, at June 30, 2008, had approximately $51.7 million in project related debt, $43.6 million in convertible debentures, and $8.1 million drawn against a corporate credit facility, after repaying US$16.9 million in the first six months of 2008. With 140% growth in mineral resources in two years, followed by a successful 2008 drilling program, Sherwood plans to evaluate options for further significant production expansions. Sherwood also has a 100% interest in the high grade Kutcho copper-zinc project in BC, Canada, which it is advancing towards a production decision.

Additional information on Sherwood and its Minto Mine can be obtained on Sherwood's website at http://www.sherwoodcopper.com.

Forward-Looking Statements

This document may contain "forward-looking statements" within the meaning of Canadian securities legislation and the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements are made as of the date of this document and Capstone Mining Corp. and Sherwood Copper Corp. (hereinafter referred to as the "Companies") do not intend, and do not assume any obligation, to update these forward-looking statements.

Forward-looking statements relate to future events or future performance and reflect management of the Companies' expectations or beliefs regarding future events and include, but are not limited to, statements with respect to the estimation of mineral reserves and resources, the realization of mineral reserve estimates, the timing and amount of estimated future production, costs of production, capital expenditures, success of mining operations, environmental risks, unanticipated reclamation expenses, title disputes or claims and limitations on insurance coverage. In certain cases, forward-looking statements can be identified by the use of words such as "plans", "expects" or "does not expect", "is expected", "budget", "scheduled", "estimates", "forecasts", "intends", "anticipates" or "does not anticipate", or "believes", or variations of such words and phrases or statements that certain actions, events or results "may", "could", "would", "might" or "will be taken", "occur" or "be achieved" or the negative of these terms or comparable terminology. By their very nature forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Companies to be materially different from any future results, performance or achievements expressed or implied by the forward-looking statements. Such factors include, among others, risks related to actual results of current exploration activities; changes in project parameters as plans continue to be refined; future prices of resources; possible variations in ore reserves, grade or recovery rates; accidents, labour disputes and other risks of the mining industry; delays in obtaining governmental approvals or financing or in the completion of development or construction activities; as well as those factors detailed from time to time in the Companies' interim and annual financial statements and management's discussion and analysis of those statements, all of which are filed and available for review on SEDAR at www.sedar.com. Although the Companies have attempted to identify important factors that could cause actual actions, events or results to differ materially from those described in forward-looking statements, there may be other factors that cause actions, events or results not to be as anticipated, estimated or intended. There can be no assurance that forward-looking statements will prove to be accurate, as actual results and future events could differ materially from those anticipated in such statements.

Accordingly, readers should not place undue reliance on forward looking statements.

Neither the TSX Venture Exchange nor the TSX any accept responsibility for the adequacy or accuracy of this press release.

Contact Information

  • Sherwood Copper Corporation
    Stephen Quin
    President & CEO
    (604) 687-7545 or 1-888-338-2200
    or
    Sherwood Copper Corporation
    Chris Curran
    (604) 687-7545 or 1-888-338-2200
    Email: info@sherwoodcopper.com
    Website: www.sherwoodcopper.com
    or
    Capstone Mining Corp.
    Darren Pylot
    President & CEO
    (604) 684-8894 or 1-866-684-8894
    or
    Capstone Mining Corp.
    Chris Tomanik
    (604) 684-8894 or 1-866-684-8894
    or
    Capstone Mining Corp.
    Mark Patchett
    (604) 684-8894 or 1-866-684-8894
    Email: info@capstonemining.com
    Website: www.capstonemining.com