Vancouver-based Southwestern Resources Corp. (TSX:SWG) has announced an agreement to sell its Boka project for US$9.4 million to Hong Kong East China Non-Ferrous International Mineral Development Co., Ltd.
In July 2007, the company revealed that early results for the project were false and the integrity of some core samples had been compromised.
The company and its former CEO and president, John Paterson, have since been named in three class-action lawsuits in B.C., Ontario and Quebec. The suits allege negligence or reckless misrepresentation related to the quantity of gold in Boka drill samples.
Southwestern is pursuing legal action against Paterson for fraud, breach of fiduciary, statutory and contractual duties.
The company reported a net loss of $3.8 million for the quarter ending March 31 compared with a net loss of $1.1 million for the same quarter in 2007.
Southwestern's share price range during the past week: around $0.54; 52-week high: $7.47; 52-week low: $0.47.