Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

July 20, 2005 18:14 ET

Southwestern Resources Closes US$500,000 Financing with Anglo American

VANCOUVER, BRITISH COLUMBIA--(CCNMatthews - July 20, 2005) - NOT FOR DISTRIBUTION TO U.S. NEWS WIRE SERVICES OR DISSEMINATION IN THE UNITED STATES.

Southwestern Resources Corp. (TSX:SWG) announced that it has completed a non-brokered private placement and received proceeds of US$500,000.

The sole placee, Anglo American Exploration BV (AABV), a subsidiary of Anglo American plc, purchased 57,848 common shares of Southwestern at Cdn$10.62, being the volume weighted average trading price of Southwestern common shares for the 10 trading days prior to the placement. AABV has a firm commitment to purchase an additional US$500,000 worth of Southwestern common shares within the next year and has also agreed to purchase up to a further US$4 million worth of Southwestern common shares over the next five years, subject to certain conditions and regulatory acceptance.

In a separate transaction, Minera del Suroeste S.A.C., a subsidiary of Southwestern, and Anglo American Exploration Peru S.A. (AAEP) are finalizing formal agreements granting AAEP the option to earn a 55% interest in Southwestern's Antay Project, Peru by spending up to US$5 million in exploration over five years. Once vested, AAEP will have the second option to earn an additional 15% interest in the Antay Project by producing, within the subsequent five years, a bankable feasibility study on any specific target identified during the first option period.

AAEP has a firm commitment to spend US$750,000 on exploration, including 3,000 metres of drilling, in the initial two years of the first option. To maintain the first option during the last three years, AAEP must annually spend a minimum of US$750,000 in exploration expenditures.

Southwestern's Antay Porphyry Copper Project is comprised of 50,000 hectares located within the northern extension of the Southern Peru-Porphyry Copper Belt, some 80 kilometres northwest of BHP Billion's Tintaya porphyry copper deposits. Three main areas (Sayta, Ccora and Sihuamago) of porphyry copper mineralization have been discovered by Southwestern at Antay within erosional windows and structurally uplifted areas in a laterally extensive cover of young post-mineralization volcanics.

Southwestern Resources Corp. is exploring in several countries for precious and base metals. The Company has a number of significant projects including the Boka Gold Project in China with Team 209, 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. The Company is also exploring for porphyry copper-gold in a large area of southwestern Yunnan Province, China under a Joint Venture with Newmont Overseas Exploration Limited.

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 the Company'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. The Company does not assume the obligation to update any forward-looking statement.

Contact Information

  • Southwestern Resources Corp.
    Timo Jauristo
    VP, Corporate Development
    (604) 669-2525
    (604) 688-5175 (FAX)
    or
    Southwestern Resources Corp.
    John G. Paterson
    President & CEO
    (604) 669-2525
    (604) 688-5175 (FAX)
    or
    Southwestern Resources Corp.
    Daniel G. Innes
    VP, Exploration
    (604) 669-2525
    (604) 688-5175 (FAX)
    info@swgold.com
    www.swgold.com