Capstone and Sherwood Sign Combination Agreement
Sherwood Copper Corporation and Capstone Mining Corp. announced that, further to their joint news releases dated September 8 and September 18, 2008 respectively, the companies have entered into a combination agreement dated as of October 9, 2008 pursuant to which the companies will combine, by way of plan of arrangement, to create a well-funded, low-cost, growth-oriented, copper company with two producing mines in mining friendly jurisdictions in North America. A copy of the combination agreement is available on SEDAR at www.sedar.com under the companies’ respective profiles.
As previously disclosed, the special meeting of Sherwood’s shareholders will be held in the offices of Sherwood’s counsel, Dumoulin Black LLP, on the 10th floor of 595 Howe Street, Vancouver BC at 10:00 AM on November 14, 2008. Additional information will be provided in the information circular to be mailed to Sherwood’s shareholders in late October 2008.
About Capstone Mining
Capstone is a Canadian based mining company currently operating the 100% owned Cozamin copper-silver-lead-zinc mine located in Zacatecas State, Mexico where a recently completed drill program is anticipated to result in significantly increased mineral reserves. The Cozamin Mine produced 6.7 million pounds of copper in concentrate at a total cash cost of US$0.90 per pound in the three months ended June 30, 2008 and is currently commissioning its mill expansion to 3,000 tonnes per day of throughput. Capstone has approximately 80.3 million shares outstanding and is well financed with no bank debt and an approximately 22% holding in Silverstone Resources Corp.
Additional information on Capstone Mining and its Cozamin Mine is available on Capstone’s website at http://www.capstonemining.com.
About Sherwood Copper
Sherwood Copper owns 100% of the high grade Minto copper-gold mine in Yukon, Canada, which was built on budget and ahead of schedule in 2007. The Minto Mine is one of the highest-grade open pit copper-gold mines in the world, and is forecast to be a low cost producer. The Minto Mine produced 12.8 million pounds of payable copper at a total cash cost of C$0.96 per pound in the three months ended June 30, 2008 and is currently commissioning its Phase 3 mill expansion to 3,200 tonnes per day of throughput. With 140% growth in mineral resources in 2006 and 2007, followed by a successful 2008 drilling program, Sherwood is preparing new mineral resource and reserve estimates that are expected to upgrade and increase the mineral resources and reserves at the mine, and plans to evaluate options for further significant increases in mill throughput. Sherwood also has a 100% interest in the high grade Kutcho copper-zinc project in BC, Canada, which it is advancing towards production.
Additional information on Sherwood and its Minto Mine can be obtained on Sherwood’s website at http://www.sherwoodcopper.com.
