News Release
Selwyn Resources Announces Chihong
Approvals for Selwyn Project
Vancouver, BC, July 8, 2010 – Selwyn
Resources Ltd. (SWN.TSX-V) (“Selwyn”) is pleased to provide a further
update on the progress of its CDN$100,000,000 50:50 joint venture
transaction (“the Transaction”) with Yunnan Chihong
Zinc and Germanium Ltd. (“Chihong”). As disclosed
in Selwyn’s June 2,
2010 News Release, the key
contracts relating to this Transaction have been executed.
On July 6, 2010,
Chihong disclosed to Chinese regulators that it
has received Yunnan Provincial Department of Commerce approvals for the
establishment of two foreign subsidiaries, Chihong
Luxembourg Ltd. and Chihong Canada Ltd., as
well as approval of an investment of CDN$100,000,000 in those
subsidiaries for the subsequent re-investment in the Selwyn Project. Selwyn
understands that these two subsidiaries are the investment vehicles by
which the CDN$100,000,000 investment is transferred from China to the Canadian
joint venture company, named “Selwyn Chihong
Mining Ltd.” (“SCML”).
Upon closing of the Transaction, SCML will:
1.
be equally owned
by Selwyn and Chihong,
2.
hold all the
Selwyn Project assets, and
3.
receive CDN$100,000,000
in cash from Chihong; (prior to the
reimbursement of costs to Selwyn, see below).
On Closing, or
shortly thereafter, Selwyn will receive approximately $9-10 million from
SCML as reimbursement of Selwyn Project expenditures incurred from July
1, 2009. These expenditures are currently being audited by a Canadian
audit firm as part of the Transaction terms. Closing of the Transaction
continues towards a mid-August closing date.
Selwyn’s focus
is the exploration and development of its Selwyn Project in eastern Yukon
and Northwest Territories. The Selwyn Project represents one of the
largest undeveloped resources of zinc and lead in the world and is unique
in its location in the politically-attractive and stable jurisdiction of
the Yukon. It is therefore both a unique opportunity and a strategic
asset providing a long term secure supply of zinc and lead to the Pacific
Margin.
This news
release contains forward-looking statements concerning the development of
the Selwyn Project and the Chihong investment. These
statements are based on assumptions and judgments of management regarding
future events or results that may prove to be inaccurate as a result of
failure to complete the proposed financing, failure to obtain necessary
regulatory or shareholder approvals, exploration and other risk factors
beyond Selwyn’s control. There can be no assurance that such
forward-looking statements will prove to be accurate as actual results
and future events could differ materially from those anticipated in such
statements. Accordingly, readers should not place undue reliance on
forward-looking statements contained in this news release. This news
release does not constitute an offer to sell or a solicitation of an
offer to buy any of the securities in the United States. The securities
have not been and will not be registered under the United States
Securities Act of 1933, as amended (the "U.S. Securities Act")
or any state securities laws and may not be offered or sold within the
United States or to U.S. Persons unless registered under the U.S. Securities
Act and applicable state securities laws or an exemption from such
registration is available. All dollars in this release are in Canadian
funds.
-30-
For more information
contact:
Dr. Harlan Meade, President and CEO
Jasmin TamDoo,
Manager of Investor Communications
Telephone: (604) 801-7240
Toll-free: 1-888-989-9188
Facsimile: (604) 689-8355
info@selwynresources.com
www.selwynresources.com
Neither the TSX
Venture Exchange nor its Regulation Services Provider (as that term is
defined in the policies of the TSX Venture Exchange) accepts
responsibility for the adequacy or accuracy of this release.
|