Southwestern arranges $35.5 million financing

Vancouver — Southwestern Resources (SWG-T) inked a deal with a syndicate of underwriters to sell one million common shares at a price of $35.50 per share on a bought-deal basis for a gross proceeds of $35.5 million.

The financing syndicate is led by Raymond James and includes Octagon Capital, Haywood Securities and National Bank Financial. The underwriters will have an over-allotment option, exercisable for 30 days after the closing date. This option will grant them up to 15% of the number of common shares sold at the offering. Southwestern expects to file a preliminary short form prospectus with the securities regulatory authorities to qualify the common shares for distribution. Closing is expected on or about March 4, 2004.

Southwestern Resources exploring in several countries for precious and base metals. The company has a number of significant joint ventures including the Liam gold-silver project in Peru with Newmont Mining (NEM-T) and the Boka Gold project in China with Team 209.