interesting news.........Southwestern suitor Hochschild offers 50 cents a share
2009-03-10 08:26 EST - News Release
Mr. Timo Jauristo reports
SOUTHWESTERN ANNOUNCES LETTER AGREEMENT WITH HOCHSCHILD MINING PLC FOR ACQUISITION OF ALL OUTSTANDING COMMON SHARES
Southwestern Resources Corp. has entered into a letter agreement with Hochschild Mining PLC respecting the acquisition by Hochschild, directly or indirectly, of all of Southwestern's issued and outstanding common shares for cash consideration of 50 cents per share.
Pursuant to the letter agreement, Southwestern and Hochschild have agreed to negotiate in good faith and use their best efforts to enter into a definitive agreement respecting the transaction by March 23, 2009. The transaction is subject to customary conditions, including the completion of due diligence and receipt of a fairness opinion from Southwestern's financial advisers. In addition, the transaction will require the requisite approval of Southwestern's shareholders.
The company has established an independent committee of its board of directors in order to evaluate the transaction and has engaged Canaccord Capital Corp. as its financial adviser in connection with the foregoing.
As a result of the proposed transaction, Southwestern has terminated its discussions with Geoinformatics Exploration Inc., regarding the proposed business combination of the companies, which the company previously announced in Stockwatch on Feb. 23, 2009.
About Hochschild
Hochschild is a leading precious metals company listed on the London Stock Exchange with a primary focus on the exploration, mining, processing and sale of silver and gold. Hochschild currently operates five underground epithermal vein mines, four located in southern Peru and one in southern Argentina, and one open pit mine in northern Mexico. Hochschild also has one early stage development project in Mexico and 15 longer term prospects throughout Latin America. Hochschild has over 40 years experience in the mining of precious metal epithermal vein deposits.
We seek Safe Harbor.