Southwestern Resources Corp.
TSX : SWG

Southwestern Resources Corp.

March 17, 2008 08:01 ET

Southwestern Resources Sells Exploration Properties in Peru to Maxy Gold Corp.

VANCOUVER, BRITISH COLUMBIA--(Marketwire - March 17, 2008) - Southwestern Resources Corp. (TSX:SWG) ("Southwestern" or the "Company") is pleased to announce that it has entered into an agreement to sell 15 gold and base metal mineral exploration properties covering a total of 135,369 hectares in Peru to Maxy Gold Corp. ("Maxy").

Under the terms of the agreement, Maxy will pay C$200,000 cash and issue to Southwestern 1,000,000 common shares of Maxy upon closing. Southwestern will retain a 2% net smelter royalty payable on any commercial production from two of the properties. If Maxy decides to drop any of the properties, it will first offer them to Southwestern. The agreement is subject to a 30-day legal due diligence and to regulatory approvals and board approval by Southwestern.

This transaction will allow Southwestern to focus on its core properties while providing upside through its shareholding in Maxy, which will aggregate 11% after closing. Southwestern will continue to advance its existing projects as well as enhance the quality of its strong portfolio in Peru.

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. The Company has a number of significant projects, including the Liam gold-silver project in Peru with Newmont Peru Limited. 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 and its lack of experience in bringing an exploration property into production, its ability to repatriate any earnings, foreign exchange fluctuations, 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, the adequacy and availability of insurance coverage, the Company's dependence upon employees and consultants and fluctuations in mineral prices and other risks detailed in the Company's filings with the Canadian Securities Authorities. 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, unless the Company specifically states otherwise.

Contact Information

  • Southwestern Resources Corp.
    Timo Jauristo
    Interim President & CEO
    (604) 669-2525
    or
    Southwestern Resources Corp.
    David Black
    Chair of the Board
    (604) 669-2525