Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

May 21, 2009 19:08 ET

Southwestern Resources Corp.: Completion of Arrangement With Hochschild Mining PLC

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 21, 2009) - Southwestern Resources Corp. (TSX:SWG) ("Southwestern" or the "Company") is pleased to announce the completion of the arrangement with , Hochschild Mining plc ("Hochschild") pursuant to which an indirect wholly-owned subsidiary of Hochschild acquired all of the common shares of the Company ("Southwestern Shares") today at a price of C$0.50 per common share (the "Cash Consideration").

Upon surrender to Computershare Investor Services Inc. (the "Depositary") for cancellation of share certificates representing Southwestern Shares, together with a duly completed and executed Letter of Transmittal, a Southwestern Shareholder will receive the Cash Consideration which such Shareholder has the right to receive pursuant to the plan of arrangement for such Southwestern Shares, less any applicable withholdings. Any questions regarding payment of the Cash Consideration, including any request for an additional copy of the Letter of Transmittal, should be directed to the Depositary via telephone at 1-800-564-6253 (toll free in North America) or 514-982-7555 or via email at corporateactions@computershare.com.

Non-registered holders of Southwestern Shares should contact their nominee (i.e., broker, trust company, bank or other registered holder) which holds the certificates representing Southwestern Shares on their behalf to arrange for exchange.

It is expected that the Southwestern Shares will be delisted from the TSX early next week.

Southwestern intends to apply to the relevant securities regulatory authorities to cease to be a reporting issuer in each of the jurisdictions in Canada where it is currently reporting.

About Southwestern

Southwestern is a Vancouver-based mineral exploration company engaged in the identification, acquisition, evaluation and exploration of gold, silver and base metals mineral properties. Southwestern is a reporting issuer in British Columbia, Alberta, Manitoba, and Ontario and trades on the Toronto Stock Exchange under the symbol SWG.

Forward-looking Statements

Statements in this news release that are forward-looking statements are based on the current expectations, beliefs, assumptions, estimates and forecasts about the Company's business and the industry and markets in which it operates. These statements are not guarantees of future performance and involve risks, uncertainties and assumptions which are difficult to predict. Therefore, actual outcomes and results may differ materially from what is expressed or implied by these forward-looking statements due to a number of factors, including but not limited to, the Company's access to additional capital to fund future activities, the loss of mineral properties or the inability to obtain mining licenses, the inherently risky nature of the Company's activities, the inherent uncertainty of litigation, the political stability and economic uncertainty of those areas in which the Company carries on operations and the lack of infrastructure in those areas, title risks, the risks and uncertainties associated with joint ventures and the Company's reliance on third parties, statutory and regulatory compliance and the adequacy and availability of insurance coverage. These risks, as well as others, could cause actual results and events to vary significantly. The Company expressly disclaims any intent or obligation to update these forward-looking statements.

Contact Information

  • Southwestern Resources Corp.
    David Black
    Chairman
    (604) 669-2525