RE: How could a SP pass from 0.035 to 1.00$
The financing was done at $.35
Check website and see news release.
https://sunwardresources.com/
Sunward completes acquisition, $5-million financing
2010-03-09 13:29 ET - News Release
Mr. Philip O'Neill reports
SUNWARD RESOURCES LTD (TSXV: "SWD") (FORMERLY MKM RESOURCES LTD) COMPLETES COLOMBIAN GOLD ACQUISITION AND $5 MILLION PLACEMENT
As referenced in news in Stockwatch on Nov. 6, 2009, and Jan. 4, 2010, Sunward Resources Ltd., formerly named MKM Resources Ltd., has completed the acquisition of Sunward Investments Ltd. (SIL) in consideration for 26.4 million common shares of the company. The company also completed a private placement of 14,285,715 units at 35 cents per unit for proceeds of $5-million. Each unit consists of a share of Sunward and one-half warrant to purchase an additional share for 18 months at 50 cents per share. A further 15 million shares of the company are issuable in connection with the acquisition of SIL as exploration and development of the Titiribi project (described below) proceeds.
Titiribi project
The company (which term includes SIL, where context dictates) is party to agreements with the Goldplata group of companies in Colombia under which the company has the right to acquire up to 100 per cent of the issued shares of Goldplata Resources Ltd., the holder of a 100-per-cent interest in the Titiribi gold/copper project in Colombia. The subscription for the first 51 per cent will be at a cost of $2.5-million (U.S.) and subscription for the next 19 per cent (bringing the company to 70 per cent) will cost an additional $3.5-million (U.S.). The company may increase its interest from 70 per cent to 80 per cent by advancing sufficient funds to complete a bankable feasibility study, to a maximum of an additional $15-million (U.S.). All of the funds to be advanced to acquire these interests will be used for exploration and development of the Titiribi project.
If the company completes the acquisition of the 80-per-cent interest in Goldplata Resources (described above) it can acquire the remaining 20 per cent of the shares of Goldplata Resources by issuing four million shares of the company (subject to any necessary stock exchange approvals) to the holders of the remaining 20 per cent.
The company retained Geosure Exploration and Mining Solutions Pty. Ltd. to prepare an independent technical report on the Titiribi project in accordance with National Instrument 43-101, which has been filed on SEDAR. The author of the report and qualified person in accordance with NI 43-101 is Michael Montgomery, BAppSc, MAusIMM.
Work conducted to date on the Titiribi project has resulted in the establishment of an inferred resource of 3.7 million ounces of gold and 460,000 tonnes of copper, using a 0.3-gram-per-tonne-gold cut-off. The resource is detailed in the accompanying table with sensitivities using various cut-off grades for gold.
INFERRED MINERAL RESOURCE (1) Contained CuCut-off Tonnes Au Cu Contained Au (million(g/t Au)(2) (mt) (g/t) (%) (million oz) tonnes) 0.3 230 0.5 0.2 3.7 0.460.4 130 0.5 0.2 2.1 0.260.5 60 0.6 0.2 1.2 0.120.6 30 0.7 0.3 0.7 0.090.7 20 0.8 0.3 0.5 0.06
Notes
1. Given the stage of the project and the precision that would be expected it is the opinion of Geosure and Mr. Montgomery (the qualified person under NI 43-101) that the mineral resource estimate satisfies the definition of an inferred mineral resource as per standards outlined by NI 43-101 and those described by JORC. The classification of the resource at an inferred level of confidence is considered appropriate on the basis of the drilling density, interpretation and geological understanding of the deposit. There are several issues pertaining to the data utilized in the estimate, the significant ones described below:
- Data quality: there is a moderate risk associated with the quality of the data generated by DGBF in 2007 and hence the estimate. This assessment is based upon the fact that no quality control data have been available to assess in regard to the DBGF drill holes, particularly given that anecdotally it is known that an issue was present with grinding. It should be noted, however, that this accounts for three holes in the database and results for these holes are not dissimilar to those obtained with more stringent quality control protocols.
- Geological understanding: a significant risk is associated with the lack of understanding of controls on mineralization at the project.
- Location of data points: Differing down hole survey methods have indicated there maybe an issue with using tools which utilize magnetometers to define orientations. It appears that there is significant effect upon these magnetometer-type tools by the magnetite contained within mineralized rocks. As attempts have been made to reconcile spurious downhole data from the dataset, relatively successfully, this location-of-data-points issue is considered to pose a low-to-moderate risk.
- Data configuration: wide spacing of data represents a significant risk in the estimation.
- Data density: logistical issues have made areas hard to access and hence some areas are poorly sampled. This clustering represents a significant risk to the project.
- Tonnage estimates: lack of bulk density measurements from oxide areas and issues relating to the quantifying the oxide volume represent a risk to the estimate. The differential between collar elevations and modelled topography represents a significant risk to tonnage estimations. Work needs to be conducted to accurately define topography and to reconcile drill collars to these elevations.
- Verification sampling: the lack of of independent sampling conducted by Geosure offers a low risk to the resource estimate.
2. The accompanying table outlines several cut-off ranges for the Vetas deposit. To determine an actual cut-off grade further work will be required on project costs and commodity prices. At this stage the company has decided to focus on a cut-off of 0.3 g/t Au as it believes that material above this grade will be potentially economic given the scale of operations envisaged.
The company is immediately commencing a work program on the Titiribi project consisting of mapping, petrography, geochemical sampling and a further 1,500 metres of drilling (both infill and at depth), at an estimated cost of approximately $1.2-million (U.S.).
Murindo project
The company is also party to an agreement with the Goldplata group of companies in Colombia under which it has acquired the right to purchase 100 per cent of the outstanding shares of La Muriel Mining Corp. in consideration for eight million shares of the company. Closing is subject to approval of the TSX Venture Exchange and the company is in process of having an independent report under National Instrument 43-101 prepared in order to apply for such approval.
La Muriel holds a 100-per-cent interest in nine mining claims located in Colombia, known as the Murindo project. Pursuant to a letter of understanding dated Dec. 17, 2008, Rio Tinto Mining Exploration Ltd. has the option to earn up to a 70-per-cent interest in the Murindo project from La Muriel, by making total payments of $2.61-million (U.S.), of which $2-million (U.S.) has been paid and is to be used by La Muriel to carry out a minimum of 4,000 metres of drilling by Oct. 31, 2010. Within three months of completing the drilling, La Muriel must deliver a technical report to Rio Tinto showing the results of the drilling, after which Rio Tinto will have three years to exercise the option to acquire the 70-per-cent interest by giving notice to La Muriel and paying the additional $610,000 (U.S.). If La Muriel does not complete the drilling within the required time frame, it must refund the $2-million (U.S.) to Rio Tinto.
Upon Rio Tinto earning its 70-per-cent interest, La Muriel may elect to either form a 70/30 joint venture with Rio Tinto or allow Rio Tinto to earn an additional 10-per-cent interest by expending $5-million (U.S.) on the Murindo project within 36 months, and by paying $500,000 (U.S.). In that event La Muriel may elect to sell its remaining 20-per-cent interest in Rio Tinto for $10-million (U.S.).
The Murindo project is subject to a 1-per-cent net smelter royalty in favour of Phelps Dodge Exploration Corp., which can be repurchased by the joint venture formed by La Muriel and Rio Tinto for $1-million (U.S.). La Muriel also holds a 0.33-per-cent net smelter returns royalty capped at $50-million (U.S.) from the Murindo project.
Goldplata group
The Goldplata group controls a number of significant mineral projects in Colombia and elsewhere in South America. The principals, George and Michel Juilland, are both graduates of the Colorado School of Mines and will be active in the management of the company's exploration and development programs. It is anticipated that they will both become members of the company's board of directors following the share issuances required for acquisition of the Murindo project and the final 20-per-cent interest in Titiribi.
Early warning disclosures
On closing of the acquisition of Sunward Investments, Gold First Investments Ltd. received 26.4 million shares of the company, representing 53.1 per cent of the outstanding shares. Gold First has also entered into private agreements with two shareholders to acquire a further five million shares which will be completed in the next several days, which will bring its total holdings to 31.4 million shares, representing 63.2 per cent of the outstanding shares. Gold First acquired these shares for investment purposes and they have been placed in escrow in accordance with TSX Venture Exchange policies. Gold First is a privately owned Hong Kong-based company with its two shareholders being Notela Resource Advisors Ltd. and Lakeview Group Holdings Ltd. Philip O'Neill, the company's chief executive officer, owns one-third of the shares of Notela, and David Boehm, a director of the company, is the sole shareholder of Lakeview.
Other matters
Detailed information concerning the transactions described above, and the company in general, including details of management, capitalization and risks, as well as pro forma financial statements, can be found in the company's filing statement which has been filed on SEDAR. Detailed technical information concerning the Titiribi property can also be found on SEDAR in