Southwestern Resources Corp.

Southwestern Resources Corp.

May 12, 2009 08:30 ET

Southwestern Shareholders and BC Supreme Court Approve Plan of Arrangement With Hochschild Mining plc

VANCOUVER, BRITISH COLUMBIA--(Marketwire - May 12, 2009) - Southwestern Resources Corp. (TSX:SWG) ("Southwestern" or the "Company") is pleased to announce that, further to its press release dated March 10, 2009, the arrangement (the "Arrangement") contemplated under the arrangement agreement (the "Arrangement Agreement") between Southwestern and Hochschild Mining plc ("Hochschild") dated March 23, 2009, whereby Hochschild will indirectly acquire all of the issued and outstanding common shares of the Company for cash consideration of $0.50 per share, was approved by over 91% of the votes cast by Southwestern's shareholders, in person and by proxy, at the Company's Special Meeting held on May 8, 2009. In addition, on May 11, 2009, the Supreme Court of British Columbia granted an order approving the Arrangement under the Business Corporations Act (British Columbia) as being fair to Southwestern and its shareholders.

Pursuant to the terms of the Arrangement Agreement, the Arrangement is expected to become effective on or about May 20, 2009 and is subject to customary closing conditions. For further information regarding the Arrangement, please refer to the Company's Management Information Circular dated April 7, 2009, which is filed on SEDAR and includes the full text of the Arrangement Agreement.

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. In addition, there can be no assurance that the abovementioned transaction will complete. 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.
    Timo Jauristo
    President and CEO
    (604) 669-2525