Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

October 11, 2005 08:47 ET

Southwestern Resources Closes $26.46 Million Bought Deal Financing

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - Oct. 11, 2005) -

THIS NEWS RELEASE, REQUIRED BY APPLICABLE CANADIAN LAWS, IS NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES, AND DOES NOT CONSTITUTE AN OFFER OF THE SECURITIES DESCRIBED HEREIN

Southwestern Resources Corp. (TSX:SWG) ("Southwestern") is pleased to announce that the financing disclosed on September 21, 2005 has closed and Southwestern has received gross proceeds of $26,460,000. The syndicate of underwriters led by Raymond James Ltd. and including Octagon Capital Corporation, Haywood Securities Inc. and Canaccord Capital Corporation purchased 2,450,000 common shares from Southwestern at $10.80 per common share.

The offering was made in the provinces of British Columbia, Alberta, Manitoba and Ontario. A portion of the offering was also made in the United States as a private placement through U.S. broker-dealers affiliated with the underwriters pursuant to an exemption under the U.S. Securities Act of 1933. None of the offered securities have been registered under the U.S. Securities Act and may not be subsequently offered and sold in the United States unless registered or pursuant to an applicable exemption from the registration requirements.

Southwestern Resources Corp. is exploring in several countries for precious and base metals. Southwestern has a number of significant projects including the Boka Gold Project in China with Team 209, where a major drilling program is being conducted, the Yunnan Porphyry Copper-Gold Project in Yunnan Province, China with Newmont Overseas Exploration Limited, the Liam Gold-Silver Project in Peru with Newmont Peru Limited and the Antay Porphyry Copper-Gold Project in Peru with Anglo American Exploration Peru S.A. as well as the 100% owned Accha Zinc Project in Peru.

Forward-Looking Statement

Statements in this release that are forward-looking statements are subject to various risks and uncertainties concerning the specific factors disclosed under the heading "Risk Factors" and elsewhere in Southwestern's periodic filings with Canadian securities regulators. Such information contained herein represents management's best judgment as of the date hereof based on information currently available. Southwestern does not assume the obligation to update any forward-looking statement.


Contact Information

  • Southwestern Resources Corp.
    John G. Paterson
    President
    (604) 669-2525
    (604) 688-5175 (FAX)
    or
    Southwestern Resources Corp.
    Timo Jauristo
    VP, Corp. Development
    (604) 669-2525
    (604) 688-5175 (FAX)
    or
    Southwestern Resources Corp.
    Thomas W. Beattie
    VP, Corp. Affairs
    (604) 669-2525
    (604) 688-5175 (FAX)
    info@swgold.com
    www.swgold.com