VANCOUVER — Sherwood Copper Corp. today announced that it and its wholly owned subsidiaries Minto Explorations (MintoEx) and Kutcho Copper have entered into a letter of intent with Silverstone Resources, also of Vancouver, whereby Silverstone will purchase, subject to certain terms and conditions, all of the payable gold and silver from the Minto mine in the Yukon, over the life of the mine starting Dec. 1, 2008.
Silverstone will make an upfront payment of US$37.5 million in cash, one third of which is to be advanced immediately following receipt of stock exchange acceptance and the balance on execution of the formal agreement. Additional payments will be made against future production. Sherwood will use the upfront payment to strengthen its balance sheet and that of its subsidiary, MintoEx.
Sherwood’s Minto mine is a copper-gold-silver producer located in the Yukon. The mine reached commercial production in October 2007, increased mill throughput 50% by mid-April, 2008 and plans to process higher grades and to further increase mill throughput by early 2009. The mill at Minto is forecast to produce more than 30,000 oz of payable gold and more than 300,000 oz of payable silver in 2009, or approximately 2.4 million AgEq oz.
Details of the agreement are available at both www.SherwoodCopper.com and www.SilverstoneCorp.com in the new releases dated Nov. 7, 2008.