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TRADE WINDS PLANS SPIN-OUT AND IPO FOR ITS TWO WESTERN CHINA PROJECTS Vancouver, BC, May 31, 2007 - Trade Winds Ventures (TSX-V: TWD, FSE: TVR) is pleased to announce an Assignment agreement between Trade Winds (TWD) and Western China Mining Corp. (WCH), a wholly owned subsidiary of TWD, whereby TWD will assign its 80% interest in Xinjiang Entercor Mining Corp. (Tuole Gold/Copper project) and its 60% interest in Guangxi Silu Mining Corp. (Silu Zinc/Lead project), both located in the Peoples Republic of China, to WCH in return for shares of WCH.
In an effort to unlock and maximize shareholder value, following an IPO for WCH, management of TWD will investigate a form of distribution of the shares of WCH held by TWD. Such distribution may require an advance income tax ruling from the Canada Revenue Agency to confirm that the distribution may be completed on a tax neutral basis for TWD and its shareholders, and possible approval by the TWD shareholders.
Upon completion of the Assignment, WCH proposes to undertake a Private Placement and a subsequent Initial Public Offering (IPO) on a Canadian stock exchange to raise up to a maximum of $7,500,000 to fund the development programs for the Tuole and Silu projects. Following the IPO, it is expected that TWD would own approximately 60% of WCH. The listing of WCH requires approval of such Canadian stock Exchange. NI 43-101 reports are being prepared for both projects, and will be filed on SEDAR in conjunction with the IPO of WCH.
TWD will continue to hold its mineral resource property interests in Nunavut, British Columbia and Ontario, which include its 50% joint venture in Detour Lake Block A, a 60% option in the Birch Lake property, and its 100% interests in Gowest, Turner Lake, Treasure Mountain and Dardanelles properties.
Management has indicated that it will look at similar spin-out strategies for one or more of its other projects with the intention of commencing a second such spin-out prior to the end of 2007. These spin-out strategies are being designed to improve the identification and valuation of specific TWD properties, and to enable TWD to separately finance and develop its various assets, selectively reducing stock dilution.
The Assignment to WCH requires the receipt of all Exchange acceptance and third party consents.
Tuole Project
Beside many other discoveries of Gold and Copper showings along the belt, a large-scale volcanogenic alteration zone, Anomaly #2, was located utilizing geochemical analysis. The alteration zone has a strike length of over 2 km and a width of about 100 metres. In addition, four other similar anomalies occur along the belt, indicative of high mineral potentials. The co-operative area for which permits have been granted covers an area of 109.79 km².
TWD has completed further exploration during 2006 consisting of mapping, sampling, geophysical and geochemical surveys and has identified several targets for exploration and diamond drilling commencing during the Summer of 2007.
Silu Project
Zhongjin operates the Panlong Zinc-Lead Mine, one of such mining operations, and its associated 1,000 tonne per day mill is located approximately six kilometers northeast of the Silu property. According to Zhongjin, the Panlong property has an estimated historic resource containing 930,000 tons of contained metal in a ratio of three parts Zinc to one part Lead. The width of individual ore bodies ranges from 1.12 m to 24.49 m, grading at 1.53% of Pb and 5.16% of Zn, and the high-grade ore body found so far is 18.07 m wide grading at 10.71% of Zn and Pb (not NI 43-101 compliant data).
Beside many other discoveries of Zinc-Lead showings and numerous operating mines along the belt, a large-scale sedimentary structure with dolomatic limestone is located on the Silu property, a southwest extension of the Panlong structure. According to the geological information and geophysical and geochemical surveys, the structure has a strike-length of over three kilometers and a width of over 500 meters. This zone, as defined by geophysical surveys, runs parallel to a zone partially mined by local miners, who mined the surface Zinc oxides by open pit methods. They then reportedly sank a shaft to approximately 35 meters below surface and drifted along the high grade structure they were mining. Due to the unsafe mining practices of the local miners, the government blasted and closed the shaft and shut down operations some six years ago. WCH plans to undertake a program of exploration, diamond drilling and sink a decline to the new zone, then drift along the zone to put in a series of 5 cross cuts through the mineralized zone, commencing by Summer of 2007. WARNING: The Company relies upon litigation protection for "forward-looking" statements.
THE TSX VENTURE EXCHANGE HAS NOT REVIEWED AND DOES NOT ACCEPT RESPONSIBILITY FOR THE ADEQUACY OR ACCURACY OF THE CONTENT OF THIS PRESS RELEASE.
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