DALLAS, May 24 /PRNewswire-FirstCall/ -- Southwest Resources, Inc. (Pink Sheets: SWRS) (the "Company"), a natural resources exploration, production, and mining company, today announced that its subsidiary, Southwest Mining & Metals, LLC, has executed a binding memorandum of understanding (the "MOU") with the Applied Resource Sciences Mining Group ("ARS") to secure the exclusive option to acquire all rights and to operate a mine located near Kingman, Arizona.
The ARS mining operations claim block consists of 2 patented claims, 6 federal claims and 25 prospects comprising 160 acres of claims, and 500 acres of prospects for a total of 660 acres. There are 17 tunnels, 17 vertical shafts, 4 production trenches, 20 ore piles and 2 prospect pits, with two natural water sources on the property. Preliminary assays, which are subject to verification, reveal the presence of multiple veins containing precious metals and rare earth minerals.
The mines are located in the Cerbat Mountain range in Mohave County.
Under the terms of the MOU and pending successful completion of due diligence, Southwest has an exclusive 30 day option to acquire all ownership, rights, equipment, and privileges of the mining property owned by ARS near Kingman AZ, for the sum of $1.13 Million Dollars. A $10,000 deposit has been paid to enter into this exclusive period for customary due diligence. Upon successful completion, Southwest will pay the balance in the form of a promissory note, secured by the Mining Property, over a period of 12 months following execution of the definitive acquisition agreement.
"Given my experience with similar explorations, we have good reason to be quite optimistic about this opportunity," says Roger Hall, CEO of Southwest Resources. "I'm hopeful that our thorough and methodical verification process will validate these initial findings."
The Company's management expects the mining operations to commence following the successful completion of due diligence and execution of an acquisition agreement.
About Southwest Resources, Inc.
Southwest Resources, Inc. is an energy and mining company engaged in the acquisition, development, exploration and production of natural gas, crude oil, placer deposits of precious metals such as gold and platinum, and other income-producing natural resources. The Company is currently pursuing oil and gas properties in Texas, Oklahoma, New Mexico and Arizona and has mining rights in Utah. For more information, please visit the Company's website: www.southwest-resources.com.
Forward-Looking Statements Disclosure
This press release may contain "forward-looking statements" within the meaning of the federal securities laws. In this context, forward-looking statements may address the Company's expected future business and financial performance, and often contain words such as "anticipates," "believes," "estimates," "expects," "intends," "plans," "seeks," "will," and other terms with similar meaning. These forward-looking statements by their nature address matters that are, to different degrees, uncertain. Although the Company believes that the assumptions upon which its forward-looking statements are based are reasonable, it can provide no assurances that these assumptions will prove to be correct. In connection with the "safe harbor" provisions of the federal securities laws, including the Private Securities Litigation Reform Act of 1995, important factors that, among others, could cause or result in actual results and experience to differ materially from the Company's anticipated results, projections, or other expectations are disclosed in the Company's filings with the Securities and Exchange Commission. All forward-looking statements in this press release are expressly qualified by such cautionary statements, risks, and uncertainties, and by reference to the underlying assumptions.
SOURCE Southwest Resources, Inc.